Greece, Cyprus, Malta and Italy Seek to Block IMO's Net-Zero Framework

Greece, Cyprus, Malta and Italy expressed confidence that they can block the Net-Zero Framework (NZF) under discussion at the International Maritime Organization, as part of a green transition that, according to these countries, should not make shipping more expensive. The European Union, through its 27 member states, is moving toward agreeing on a coordinated negotiating position ahead of the Marine Environment Protection Committee meeting (MEPC85), amid internal divisions that persist even though climate discussions at the IMO have so far proceeded without major setbacks.

Malta, through its Minister for Energy, the Environment and the Regeneration of the Grand Harbour, Miriam Dalli, called for regulation that genuinely reduces emissions without creating distortions that would shift traffic, investment and emissions away from Europe. Dalli cited as an example the safeguards secured for Malta Freeport against competition from North African ports under the proposed changes to the European Emissions Trading System (ETS), which this year completed its full implementation phase after covering 40% of emissions in 2024 and 70% in 2025, and which was also extended to methane and nitrous oxide.

Consensus is growing at the IMO on the technical measures to regulate the greenhouse gas emissions intensity of marine energy, according to Dorota Lost-Sieminska, the organization's Director of Legal Affairs. However, the economic component of the NZF, which would set financial costs for emissions exceeding certain thresholds, remains unresolved. In October 2025, member states had already voted to postpone adoption of the framework by one year amid strong opposition from the United States and Middle Eastern oil producers, who argued it would fuel inflation by imposing a cost on emissions from shipping operations.

Norway is considering proposing that the NZF's emissions price be voluntary, as a compromise path to bring on board countries that reject a mandatory carbon levy. The initiative would draw on the Chinese proposal for a compliance multiplier for zero or near-zero emissions, and would retain most of the framework's core elements, albeit in a weaker form than the original version.

At a maritime conference in London, industry figures such as Thomas Kazakos, Secretary General of the International Chamber of Shipping, and Karrie Trauth, of the UK Chamber of Shipping, agreed with Lost-Sieminska that the United States remains engaged with the IMO's regulatory process despite its longstanding opposition to the Net-Zero Fund. Lost-Sieminska said she expects a compromise solution on the technical measure to be adopted in November, while Trauth described the postponement decided at last year's extraordinary MEPC session as the right call.