The Net-Zero Framework (NZF) remains under pressure as recent Marine Environment Protection Committee (MEPC) discussions highlighted divisions among member states. The US and other oil-producing countries continue to oppose the imposition of levies on polluting vessels, potentially generating up to USD 13 Bn per year, casting doubt on the framework's future.
Despite this, European countries and several others reaffirmed their support for the NZF, with negotiations ongoing to address contentious issues, such as penalties against LNG as an alternative fuel. The upcoming MEPC 85 meeting, scheduled for December, will serve as a key event for potential adoption amid these tensions.
As global carbon pricing initiatives gain momentum, covering nearly 30 per cent of emissions across 87 schemes, the path to achieving climate objectives appears fraught yet critical, with emerging developments signalling cautious optimism within the industry amidst ongoing geopolitical challenges.