Overview

• The London meeting runs through Friday to decide whether to formally adopt the Net‑Zero Framework after consensus was ruled out in April and a vote was set.
• The plan couples a tightening marine fuel‑intensity standard with a pricing system that includes $380 per ton CO2e credits and a $100 per ton penalty, with expected annual revenues of $11–13 billion for an IMO transition fund.
• If approved, the rules would enter into force in 2027, with penalties beginning in 2028 for large vessels over 5,000 gross tons that account for most international shipping emissions.
• The Trump administration has rejected the framework and threatened visa restrictions, US port bans and commercial penalties for countries backing it, pressure that diplomats say could spur abstentions by sensitive states such as the Philippines and Caribbean nations.
• Backers include the International Chamber of Shipping, the EU and the UK, while environmental groups warn the current design may steer operators toward crop‑based biofuels and may fall short of delivering net‑zero by about 2050, even as IMO enforcement powers would make any adopted pricing hard to evade.