Sustainable Alternative Fuels: IMO Net Zero Bill Postponed
An agreement aimed at decarbonising the global shipping sector is delayed for at least a year following a decision by the International Maritime Organisation to postpone adoption of its Net Zero Framework.
This follows the votes of delegates from more than a hundred countries at the Marine Environment Protection Committee's extraordinary session in London on 17 October 2025.
The motion to adjourn succeeded by a narrow margin, with 57 delegates voting in favour, 49 against and 21 abstaining entirely.
This result may represent a setback for what is to be the world's first internationally mandated emissions reduction targets for the maritime industry.
The framework, which was initially agreed in principle in April following a decade of negotiations, includes measures designed to encourage sustainable shipping practices.
It includes financial penalties for companies that do not begin using low-carbon fuels by 2028.
Trade threats and political pressure
The postponement follows intensive lobbying from the US administration, which threatens countries with tariffs if they support the framework.
US President Donald Trump called the plan a "green scam" in a post on Truth Social, declaring the US will not tolerate "increased prices on American Consumers".
Secretary of State Marco Rubio subsequently described the postponement as a "huge win" for Trump's government.
Delegations from developing countries report what they describe as "bullying" and pressure from Washington, with threats of sanctions alongside tariff warnings.
Even some island nations – which face particular threat from rising sea levels – abstained from voting.
The Bahamas and Antigua & Barbuda, both of which agreed to the deal's terms in April, are two countries that abstained.
A delegate from the island states group subsequently told the BBC that these nations particularly rely on the US for trade and have been leaned on heavily by the Trump administration to change their position.
Saudi Arabia's last-minute intervention
Saudi Arabia brought the motion to adjourn to a vote on the final day of talks, when countries were scheduled to make a final decision on the framework.
The chairman of the negotiations confirmed that this means the agreement is not approved, as key timelines for the treaty require revision.
Ralph Regenvanu, Minister for Climate Change for the Republic of Vanuatu, said that Saudi Arabia's motion was "unacceptable given the urgency we face in light of accelerating climate change".
He has been a vocal advocate for climate justice in recent years and explained he saw the bill as imperfect but far better than a future without a framework.
"We came to London in reluctant support of the IMO's Net Zero Framework," he explained. "While it lacks the ambition that climate science demands, it does mark a significant step."
China, which had initially supported the deal in April, also agreed to the delay.
Framework provisions and industry response
The Net Zero Framework would require ship owners to use increasingly cleaner fuels from 2028 or face financial penalties.
The mechanism would apply to vessels over 5,000 gross tonnes, establishing a market-based system of credits and penalties.
Ships exceeding emission limits would need to purchase remedial units, whilst low-emission vessels can earn and trade surplus credits.
Revenue from these penalties would flow into an IMO Net Zero Fund intended to support clean fuel adoption and assist developing countries with the transition.
According to the IMO, shipping currently accounts for 3% of global emissions, with 90% of all goods transported by sea.
Without intervention, the organisation estimates emissions can grow between 10% and 150% by 2050.
The shipping industry broadly supports the framework as it provides consistent global standards for investment planning.
Thomas Kazakos, Secretary-General of the International Chamber of Shipping, says: "We are disappointed that member states have not been able to agree a way forward at this meeting.
"Industry needs clarity to be able to make the investments."
IMO Secretary General Arsenio Dominguez urged delegates to use the year to "negotiate and talk and come to consensus" before reconvening in 2026.
The UK and most EU nations voted to continue the talks, though Greece abstains contrary to the broader EU position.
Blánaid Sheeran, policy officer at environmental NGO Opportunity Green, warned: "A delay in action may require changes to the text of agreement that undermine the planned timeline, and could revert years of work to date."
