Freight & Trade Alliance (FTA) and the Australian Peak Shippers Association (APSA) provide this update to advise members of a significant outcome from the International Maritime Organization's (IMO) Marine Environment Protection Committee (MEPC) Extraordinary Session held in London this week. Following four days of tense negotiations, the IMO's MEPC voted to delay the adoption of the Net-Zero Framework by one year. The motion to delay, put forward by Singapore and called to a vote by Saudi Arabia, was passed with 57 votes in favour of the delay, 49 against, and 21 abstentions. The Net-Zero Framework is designed to introduce a global carbon pricing mechanism, emission limits, and fuel standards to drive decarbonisation of the maritime sector by 2050. It was initially scheduled for adoption this month, with an entry into force planned for 2027. That timeline will now be reviewed. The delay follows intense diplomatic pressure from the U.S. administration, which reportedly threatened retaliatory tariffs and port restrictions on developing nations that supported the framework. While a clear majority of IMO members – including the EU27, Brazil, China, India, Canada, the UK, Japan, and South Korea – had supported the proposal, a bloc of oil-producing states voted to defer the decision. The IMO will reconvene from 20–24 October for further technical discussions on design and implementation matters, including potential incentives for green fuels and the structure of the proposed Net-Zero Fund, expected to generate up to USD$15 billion annually from 2030 to support cleaner technologies and transition programs in developing countries. What this means for Australia
For Australia, the delay defers near-term impacts on freight rates and vessel compliance deadlines, but does not alter the fundamental trajectory. International shipping is still building toward decarbonisation, and industry stakeholders should remain focused on readiness — including regulatory compliance, fleet upgrades, and zero- and low-carbon fuel adoption. Resources
IMO Net-Zero Framework - FAQs
FTA/APSA will continue to monitor developments and provide members with updates as the revised adoption timeline and technical framework evolve.
Amanda Bradfield & Tom Jensen - FTA | APSA Copyright © 2025 Freight & Trade Alliance (FTA) Pty Ltd, All rights reserved.
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