IMO delays maritime carbon tax talks by one year under Saudi-led motion

Talks on the Net-Zero Framework, which seeks to regulate greenhouse gas pricing on marine fuels, have been postponed until 2026 following a majority vote initiated by Saudi Arabia.

Share:

Comprehensive energy news coverage, updated nonstop

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access • Archives included • Professional invoice

OTHER ACCESS OPTIONS

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

FREE ACCOUNT

3 articles offered per month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 35,000 articles • 150+ analyses per week

Member states of the International Maritime Organization (IMO) voted on October 17 to postpone by one year negotiations on the Net-Zero Framework, a proposed regulation designed to price greenhouse gas (GHG) emissions from marine fuels. Out of 127 countries present, 57 supported the motion to adjourn, led by Saudi Arabia, while 49 opposed and 21 abstained. The adjournment required a simple majority of 54 votes.

The Net-Zero Framework, approved last April by 63 votes to 16, aimed to introduce a pricing mechanism on GHG emissions from bunker fuels starting in 2028. Its objective was to provide a clear market signal to encourage investment in low-carbon marine fuels. The newly approved delay casts doubt on both the implementation timeline and the integrity of the current text, which may need substantial revisions.

Deep divisions among member states

The adjournment motion was driven by a group of fossil fuel-producing countries, including Venezuela, Russia, and lead proponent Saudi Arabia. Additional support came from India, Panama, and other nations that had previously endorsed the framework in April. In contrast, several European countries, Pacific island nations, and Brazil voiced clear opposition to the delay.

A Brazilian delegate warned that the postponement could amount to a de facto rejection, citing the difficulty in preserving key elements of the current text. Japan, Cyprus, and Greece—previous supporters—abstained from the vote, suggesting waning backing for the framework.

Diplomatic pressure and geopolitical tensions

The United States applied considerable diplomatic pressure in the lead-up to the vote. On October 16, President Donald Trump called the framework a “global carbon tax” and declared it unacceptable for the U.S. maritime industry. A joint statement from three U.S. cabinet secretaries threatened retaliatory measures such as increased port fees, sanctions, and restrictions on port and terminal access if the framework were adopted.

Some U.S.-based industry groups, including the Renewable Fuels Association, had expressed support for the regulation due to its market potential for renewable fuels. Following the delay, these groups stated they would continue lobbying in favour of the measure.

Bunker markets face continued regulatory uncertainty

The delay adds further uncertainty to shipowners’ fuel investment decisions. In Singapore, average delivered prices last month stood at $483.73/metric ton for 0.5% sulphur fuel oil, compared with $579.17 for liquefied natural gas (LNG), $691.92 for B24 biobunker fuel, and $1,897.44 for 100% sustainable methanol.

Several maritime organisations reiterated the industry’s need for regulatory clarity. The Secretary General of the International Chamber of Shipping stated that “the industry needs certainty to unlock the required investments.”

Technical talks to continue

Despite the official adjournment, IMO member states will continue technical discussions on the Net-Zero Framework from October 20 to 24 during the Intersessional Working Group on Reduction of GHG from Ships. The IMO Secretary-General said he intends to maintain cooperation among states but acknowledged that “geopolitics currently make it difficult to resolve certain issues.”

The European Commission affirmed its commitment to participate constructively in upcoming talks, while some observers expressed growing doubt about the framework’s future viability.

Enedis will progressively reorganise off-peak hour time slots from 1 November, impacting 14.5 million customers by 2027, under new rules set by the Energy Regulatory Commission.
A report highlights the financial burden of fossil imports during the energy crisis and points to electrification as key to European energy security.
Prime Minister Sébastien Lecornu announced a review of public funding for renewable energy, without changing national targets, to avoid rent-seeking effects and better regulate the use of public funds.
The 2025 edition of the Renewable Electricity System Observatory warns of the widening gap between French energy ambitions and industrial reality, requiring immediate acceleration of investments in solar, wind and associated infrastructure.
Kogi State Electricity Distribution Limited reported a ₦1.3bn ($882,011) loss due to power fraud, threatening its operational viability in Kogi State.
More than 40 developers will gather in Livingstone from 26 to 28 November to turn Southern Africa’s energy commitments into bankable and interconnected projects.
Citepa projections confirm a marked slowdown in France's climate trajectory, with emissions reductions well below targets set in the national low-carbon strategy.
The United States has threatened economic sanctions against International Maritime Organization members who approve a global carbon tax on international shipping emissions.
Global progress on electricity access slowed in 2024, with only 11 million new connections, despite targeted efforts in parts of Africa and Asia.
A parliamentary report questions the 2026 electricity pricing reform, warning of increased market exposure for households and a redistribution mechanism lacking clarity.
The US Senate has confirmed two new commissioners to the Federal Energy Regulatory Commission, creating a Republican majority that could reshape the regulatory approach to national energy infrastructure.
The federal government launches a CAD3mn call for proposals to fund Indigenous participation in energy and infrastructure projects related to critical minerals.
Opportunities are emerging for African countries to move from extraction to industrial manufacturing in energy technology value chains, as the 2025 G20 discussions highlight these issues.
According to the International Energy Agency (IEA), global renewable power capacity could more than double by 2030, driven by the rise of solar photovoltaics despite supply chain pressures and evolving policy frameworks.
Algeria plans to allocate $60 billion to energy projects by 2029, primarily targeting upstream oil and gas, while developing petrochemicals, renewables and unconventional resources.
China set a record for clean technology exports in August, driven by surging sales of electric vehicles and batteries, with more than half of the growth coming from non-OECD markets.
A night-time attack on Belgorod’s power grid left thousands without electricity, according to Russian local authorities, despite partial service restoration the following morning.
The French Academy of Sciences calls for a global ban on solar radiation modification, citing major risks to climate stability and the world economy.
The halt of US federal services disrupts the entire decision-making chain for energy and mining projects, with growing risks of administrative delays and missing critical data.
Facing a potential federal government shutdown, multiple US energy agencies are preparing to suspend services and furlough thousands of employees.

All the latest energy news, all the time

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access - Archives included - Pro invoice

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.