IMO continues talks on carbon pricing policy details
LONDON: The International Maritime Organization (IMO) is meeting this week to continue negotiations on key policy details in the Net-Zero Framework (NZF), despite the decision last week to delay the adoption till 2026.
The NZF is a critical policy tool based on carbon pricing that the IMO needs in order to get the industry closer towards its 2023 Revised Strategy goals.
Why this matters: While the NZF adoption is postponed, countries are expected to make important clarifications on the Framework’s architecture and implementation that are still missing, including which clean energy options will be incentivised and how the NZF revenues (worth up to $15bn/year from 2030) will be spent.
A big focus this week will be on the role of biofuels in shipping’s clean transition, with experts (examples here and here) repeatedly warning about the environmental and climate risks of shipping’s expansion into high-risk biofuels. They call for real clean energy incentives in the Framework, like renewably produced e-fuels and wind propulsion.
Delegates will also negotiate on the future of the carbon pricing revenues, with high-ambition Pacific Island states and NGO observers calling for guarantees for revenue distribution towards just and equitable transition.
Quotes from experts on the record ahead of ISWG-GHG-20:
Dr. Alison Shaw, IMO Policy Manager at T&E, said: “Adoption of the IMO’s Net-Zero Framework has been delayed by a year, but the Framework’s success was always dependent on the development of strong and coherent implementation guidelines. This work can continue regardless of the delay. Member States now have the opportunity to add key incentives for green e-fuels and establish safeguards against unsustainable first-generation biofuels, thereby strengthening the framework. Adoption has been paused but progress shouldn’t be.”
Emma Fenton, Senior Diplomacy Director at Opportunity Green, said: “The adoption of the IMOs Net-Zero Framework may have been delayed for a year, but we still have the opportunity to push for as much ambition as possible in the meantime. The only way to achieve a just maritime transition is through the equitable distribution of revenue that is raised multilaterally and the discussions this week will be central in establishing how that can happen.”
Christiaan de Beukelaer, Senior Lecturer in Culture and Climate at the University of Melbourne, said: “Saudi Arabia framed their call to a vote on the IMO Net-Zero Framework as one between unity and division. This is disingenuous at best. They have shown at the COPs, the ICJ, the Plastics Treaty, and now at the IMO that they do not want action on climate and the environment. Our best chance to fight back is by strengthening the alliance of climate ambitious countries, citizens, and companies in defiance of petro-states — including the USA — over the next year. The NZF is still on the table and simply needs to be adopted. The IMO must not waste precious time this week and instead make progress on ensuring an equitable revenue distribution of IMO funds.”
Anaïs Rios, Shipping Policy Officer, Seas At Risk, said: “The Net-Zero Framework could give shipping a fighting chance to meet its climate goals, even if it is far from perfect, but countries must stop dragging their anchors. With adoption now delayed, this week at the IMO is about creating the regulatory architecture of the framework and finding clear incentives to scale up wind propulsion, a proven solution to reduce emissions today. After all, wind technology is available, it’s fair and it works: it is a proven, equitable solution in the race to decarbonisation.”