INDUSTRY figures say hope for progress towards maritime industry decarbonisation remains despite a vote by IMO members states to defer a decision on a Net-Zero Framework.
The meeting of the IMO in London last week was expected to ratify changes of the Marine Environment Protection Committee, however, the move faced intense opposition from the US and Saudi Arabia as well as prominent maritime registry nations Greece and Cyprus.
The vote has been deferred until October 2026.
Maritime Industry Australia chief executive Angela Gillham said while the Net-Zero Framework was imperfect, it represented a credible mechanism to facilitate the energy transition.
“There is no doubt that investment in the transition to a lower carbon future has been dealt a major blow by this delay,” Ms Gillham said.
“But it’s worth considering that the delay also presents an opportunity to further develop the technical detail, increase understanding of this complex framework and to build deeper support for this important global measure.”
Ms Gillham said MIAL recognised significant work would be required during coming months for member states to negotiate and find a way through the deadlock.
“MIAL will continue to work with our industry and government colleagues to advocate for change that delivers a level playing field for international trade, an energy transition that is just and equitable, and for the certainty needed for long term investment in maritime capability,” she said.
A Shipping Australia spokesperson said they were disappointed the Net-Zero Framework had failed to progress but also remained hopeful.
“We note that the talks have been adjourned for twelve months and we hope that progress can be made over the period and at the meeting next year,” the spokesperson said.
“In the interim, we reiterate that it is vitally important for the economic well-being of all Australians that the regulation of shipping continues to take place at the international level. As the expert global regulator, the IMO is best placed to create global regulation for a global industry.
“We therefore urge that fragmented international shipping regulation, which is so detrimental to Australia’s economic interest, is avoided.”
The spokesperson said SAL urged Australian governments to opt for regulation that was aligned with IMO policy and rules.
“International shipping is committed to protecting and preserving the marine and atmospheric environments,” the spokesperson said.
“Indeed, while the adjournment at the IMO is unfortunate, we are reminded that it was progress from within the shipping industry that has led to the regulatory developments we have seen so far.”
Global supply chain executive Peter Creeden said while the move to postpone was disappointing, it was also wise to avoid risking outright defeat.
“The decision by the MEPC to postpone the Net-Zero Framework is disappointing, but it was the right choice to delay it and not to completely abandon it,” Mr Creeden said.
“Over the next year, the geopolitical landscape may shift in a positive direction.”
Mr Creeden said there was now “a valuable opportunity” to rebuild momentum and concentrate on the Green Shipping Corridors.
“I hope Australia can take a leading role in developing these established corridors with Singapore, Japan and our Pacific neighbours,” he said.
“Such collaborations can demonstrate scalable, zero-emission solutions and help shape the global framework that the IMO aims to create.”
Freight and Trade Alliance director Paul Zalai said the postponement delayed immediate pressure on freight rates and vessel compliance timelines, “but doesn’t change the course”.
“Shipping decarbonisation is still inevitable,” Mr Zalai said.
“Australian industry players should use this breathing space wisely: focus on compliance planning, fleet renewal, fuel transition strategies, and investment readiness.”
OCEON Energy chief executive Jordan Glanville said while disappointing, it was important to recognise the challenges of the task.
“This was never going to be easy and even reaching the point of a global vote is a significant achievement the maritime sector should be proud of,” Mr Glanville said.
“The decarbonisation goals remain, but the delay adds uncertainty for energy producers and fuel developers who need confidence in a stable market,” he said.
“Well-designed market mechanisms are essential to attract investment, reduce costs, and create new industries and jobs.”
Freight decarbonisation specialist Michael Blake said while the IMO decision “isn’t ideal” but “it doesn’t change the direction of travel”.
“Global freight is still heading toward embedded carbon pricing in my view,” Mr Blake said.
“The regulation may have paused, but the broader market hasn’t. The data work continues and those building solid foundations today will be ready when the IMO catches up.”