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IMO Member States met in London from 01 to 04 September for technical discussions aimed at advancing the Organisation’s global framework for reducing greenhouse-gas emissions from shipping. Although participants reported a genuine willingness to seek compromise following the highly contentious negotiations that led to the postponement of the framework’s adoption last October, significant differences remain on several core elements.

A central point of disagreement is the proposed IMO Net-Zero Fund, which would receive revenues generated through the pricing of emissions from ships. The United States, Saudi Arabia and several other countries continue to oppose an IMO-administered fund, favouring solutions that rely more heavily on market-based mechanisms.

The EU continues to support the decarbonisation objectives set out in the IMO’s 2023 greenhouse-gas strategy. These include a trajectory requiring the annual reduction of the greenhouse-gas intensity of marine fuels between 2028 and 2035. However, the EU reportedly showed greater flexibility during the latest discussions by accepting a Brazilian proposal to soften the reduction requirements during the first two years of implementation.

The discussions indicate that there remains political interest in reaching an agreement, but the future of the global framework will depend on whether IMO members can bridge their differences over the emissions-pricing mechanism, the management and distribution of revenues, and the pace of the initial reduction requirement.