Climate & Nature

IMO Delays Global Net Zero Shipping Framework After US Pressure

ESG Broadcast Desk· 20 Oct 2025· 2 min read

International Maritime Organization member states voted to delay adoption of the IMO Net-Zero Framework for global shipping decarbonization by one year, following threats of retaliatory measures from the Trump administration against nations supporting the agreement. The delay was approved by 57 countries, opposed by 49, and with 21 abstentions.

The draft framework had received majority approval from 63 nations in April 2025, and included a global fuel standard requiring ships to progressively reduce their greenhouse gas fuel intensity over time, and a global carbon pricing mechanism. Ships unable to meet the fuel intensity standard would be required to purchase remedial units, with proceeds flowing to an IMO Net-Zero Fund supporting low-emission technology transfer, infrastructure, and support for developing countries. Maritime shipping accounts for approximately 3% of global greenhouse gas emissions, a share projected to roughly double by 2050 absent regulatory intervention.

Prior to the delayed negotiations, the US State Department issued a communication categorically rejecting the proposal and detailing potential retaliatory actions against nations supporting it, including regulations targeting vessels from countries that voted for the framework, visa restrictions on crews, commercial penalties, additional port fees, and the evaluation of sanctions on officials involved in the process. The US left the IMO negotiations before the April vote. The aggressive stance mirrors the administration's broader rejection of international climate cooperation frameworks, creating significant uncertainty for shipping industry decarbonization planning.

Industry reaction to the delay was sharply negative. Maersk described the outcome as a loss of momentum and called for clarity on how the IMO intends to proceed with the Net Zero Framework work. The one-year delay raises the cost of the energy transition for shipping companies by deferring the regulatory signals needed to justify investment in low-emission fuels and vessels. For India, which has a significant maritime trade footprint and a growing shipbuilding ambition, the delay in global shipping regulations creates both uncertainty and a potential window to build domestic competencies in green shipping technologies ahead of eventual mandatory standards.

Key figure — 3% share of global GHG emissions from maritime shipping, projected to double by 2050

This content is AI-assisted and reviewed by the ESG Broadcast editorial team. It is for informational purposes only and is not investment or ESG-rating advice. See our Technology & Transparency policy.

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IMO Delays Global Net Zero Shipping Framework After US Pressure | ESG Broadcast