The much-anticipated Extraordinary Session of the IMO’s Marine Environment Protection Committee concluded with an adjournment and a decision to postpone further debate on the IMO’s Net-Zero Framework (NZF).
The tone of the session was set early by strong statements from the US delegation, which warned that any member state supporting the NZF could face sanctions, echoing the official position expressed by the US Secretaries of State, Energy, and Transport prior to the meeting. Saudi Arabia, backed by other oil-producing nations, also emerged as a key opponent. Initially challenging the NZF on its substance, these states later shifted to procedural tactics aimed at delaying progress.
Ultimately, a roll-call vote determined the outcome. The meeting will reconvene in one year. Supporters of adjournment carried the vote, while Cyprus and Greece abstained, marking the first time EU Member States failed to vote as a unified bloc on a pre-agreed position.
The maritime 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.
Although the adjournment represents a missed opportunity, it is arguably preferable to an immediate vote on adoption, which would likely have failed. This delay keeps the NZF alive and allows time for further deliberation, though a shift in the positions of the US and Saudi Arabia appears unlikely ahead of next year’s session.
Why does this decision matter for marine insurers? 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, driving up losses and leaving some assets uninsurable.
Even though insurers are not the core players in the IMO debate, they do play a supporting role on the path toward shipping decarbonisation and IUMI continues to support this transition.
