The United States has issued a stern warning to Caribbean nations regarding their potential support for the International Maritime Organization’s (IMO) Net-Zero Shipping Framework (NZF). This framework aims to significantly reduce emissions in the maritime sector.
US Threatens Sanctions on Nations Supporting Net-Zero Shipping
The joint statement from Secretary of State Rubio, Secretary of Energy Chris Wright, and Secretary of Transportation Sean P Duffy emphasizes the United States’ readiness to implement sanctions. They specifically point to the upcoming vote on October 17 during the Marine Environmental Protection Committee, where 108 IMO members, including 10 from CARICOM, are eligible to participate.
Implications of the Net-Zero Shipping Framework
Adopted in April 2025, the NZF is slated to take effect in 2028 and seeks to align with global greenhouse gas (GHG) emission reduction targets for the maritime industry. Key features of the framework include:
- Global Fuel Standard (GFS) that sets annual GHG intensity reduction targets
- A two-tier carbon pricing structure
- A credit trading system incentivizing the adoption of zero and near-zero emission fuels
These measures require ships over 5,000 gross tonnage (GT) to transition to more expensive fuel alternatives, potentially increasing global shipping costs by 10% or more.
Economic Risks and Reactions
The US government warns that the NZF could impose significant economic burdens not only on American consumers but also on other IMO member states. Estimates indicate that adopting this framework may introduce a global carbon tax affecting international shipping, which could unfairly disadvantage the US economy.
In response to nations that favor the NZF, potential actions from Washington include:
- Investigating anti-competitive practices from those countries
- Blocking vessels registered in supportive countries from US ports
- Imposing new commercial penalties related to US government contracts
- Increasing fees and scrutiny for maritime crew member visas
- Applying extra port fees for ships from supporting nations
Call for Collaboration against the NZF
The US government has reached out to countries urging them to reject the adoption of the NZF in the upcoming meeting. They emphasize the importance of working collaboratively to ensure collective economic and energy security.
As the maritime industry anticipates these regulations, shipowners are advised to prepare for compliance to avoid increased costs associated with the transition to net-zero emissions.
