IMO Net-Zero Talks End With Key Issues Still Unresolved

Divisions Persist After Latest Session

The International Maritime Organization has wrapped up its latest intersessional working group session on shipping decarbonization, according to a report by Maritime Executive, with member states still far from consensus on the Net Zero Framework (NZF). The organization is now targeting a possible resolution by the end of 2026, following further intersessional talks and a critical run of three sessions scheduled for late November and early December.

While some participants described a more constructive tone with less political friction than in prior rounds, opposition from the United States, Saudi Arabia, and other oil-producing states persisted, resulting in the deferral of adoption votes. These states have continued pushing to remove core elements of the NZF or expand it with additional fuel pathways.

Competing Proposals on the Table

Several alternative structures were floated during the session. The proposed GCG Fund remains contentious even after revisions and a rename. Liberia has proposed linking the framework to the availability and affordability of cleaner fuels, while Japan suggested replacing the pricing mechanism with shipowner-directed contributions — a proposal that observers in closed-door sessions said was firmly rejected.

China’s proposal, which includes reward payments potentially structured as a single transaction, reportedly gained broad backing, with observers estimating that roughly two-thirds of states now favor a centralized pricing and collection system that rewards early movers on emissions reductions.

Scientific Backdrop and Expert Warnings

The talks unfolded against continued signs of climate stress, including severe heatwaves across Europe and elsewhere, a major glacier collapse and flooding in Nepal, and UN scientific findings indicating the world will likely exceed the 1.5°C warming threshold with more severe consequences to follow.

Dr. Tristan Smith of the UCL Shipping and Oceans Research Group noted the talks yielded positives but cautioned that significant uncertainty remains around how much support both industry and low-income countries will receive during the transition. He warned that the balance which originally enabled the NZF’s adoption could be lost if negotiators pursue a workaround.

UCL researchers also noted expected softening of the initial Global Fuel Intensity pathway and ongoing debate over credit pooling and transfer mechanisms. The lifecycle framework was not addressed this round and has been pushed to the next session.

What Comes Next

The IMO’s official summary cited strong engagement, with more than 1,200 registrations for the intersessional working group, and described a genuine willingness among participants to advance the process. Still, no finalized text emerged, and several elements were deferred.

The working group is set to reconvene November 23, followed by MEPC 85 from November 30 to December 4. The extraordinary session adjourned in October 2025 is expected to resume December 4, contingent on MEPC 85’s outcomes.

Apeks view — For owners and technical managers, the practical takeaway is that no compliance pathway is settled. Pricing mechanisms, fuel pathways, and credit rules remain in flux, and lifecycle accounting hasn’t even been addressed yet. Fleet investment and fuel-strategy decisions built on any single proposal risk being overtaken by the next session. Until a finalized text exists, prudent planning means tracking the process closely rather than committing capital against assumptions that could still shift materially before adoption.