While IMO member states have been meeting in informal groups in the lead-up to MEPC 85, we have been consulting with members of the Getting to Zero Coalition about how proposed alternatives to the IMO's Net-Zero Framework would impact their decision-making.
Of particular focus have been the enforcement mechanisms that could serve as alternatives to the penalties (“Remedial Units”) envisioned in the Net-Zero Framework. These alternatives (“Direct Contributions” or “Voluntary Units”) have been put forward as attempts to find agreement around the economic element, and the contested idea of establishing a fund or facility to manage the collected fees.
Will they help shipowners comply more efficiently? Would they result in lower trade costs? Would they promote investment in zero- and near-zero -emission (ZNZ) fuels?
The answer from the 15 companies consulted so far has been a clear “no” on all fronts. These companies also worried that the new alternatives would increase complexity, distort the market, and create reputational risks for the industry, all without enabling delivery of the IMO's 2023 GHG Strategy.
The message received has been clear: enforcement of compliance should involve a real penalty, and the alternatives proposed would create risks and burdens for the industry without solving any substantive problems.
Read more in our newest insight brief.