Adjournment of MEPC Extraordinary Session on the adoption of the IMO Net-Zero Framework
Climate change is widely considered to be one of the most pressing issues of our time. It has also been identified by IUMI as a major concern for marine insurers. The effects of global warming are already evident and are changing the nature of the insured assets. The frequency of weather-related catastrophes has increased significantly which drives up losses and leaves some assets uninsurable.
The potential impact of climate change is therefore a fundamental issue for regulators. The adjournment of the adoption of the IMO Net-Zero Framework is a missed opportunity to create a level playing field for a truly global industry and to advance collective progress towards decarbonisation.
The industry now faces greater uncertainty over future investment decisions. Fewer newbuilds will contribute to an ageing fleet heightening risks of machinery breakdowns, crew fatigue and insurer exposure. Fragmented regulation is also likely to emerge.
Increasing temperatures are warming the sea, melting the ice and causing sea levels to rise. According to the World Bank’s “Groundswell” report, climate change could contribute to the movement of 216 million people unless concrete climate and inclusive development actions are taken. As well as the negative implications for those most directly impacted by climate change, the adjournment of the NZF is a setback for the IMO and the maritime industry that depends on the lead it gives.
International Union of Marine Insurance
October 2025, Hamburg
Related topics
