Twenty-seven European countries, together with the European Commission, have urged the International Maritime Organization to build stronger incentives into its Net-Zero Framework (NZF) to encourage early uptake and production of zero and near-zero marine fuels, according to Ship & Bunker.
The joint submission, filed with the IMO last month, argues that such incentives are needed to offset the higher costs shipowners face when switching to cleaner fuels during the initial stages of the industry’s energy transition. Ship & Bunker reports that the proposal has been put forward ahead of the 22nd session of the IMO’s Intersessional Working Group on GHG Emissions from Ships (ISWG-GHG 22), which is scheduled for September.
According to Ship & Bunker, the submission is backed by major maritime nations including Greece, Denmark, Germany, Cyprus, Malta and the Netherlands, alongside the European Commission.
Investment Certainty Seen as Critical
The co-sponsors state that shifting shipping toward net-zero fuels, technologies and energy sources will demand substantial long-term investment across vessels, fuel production and bunkering infrastructure, Ship & Bunker reports. Because shipping companies operate in highly competitive markets, the submission notes, the transition away from conventional high-GHG fuels will only happen if using cleaner alternatives becomes economically more attractive than sticking with existing fuels.
The document also states that certainty over future demand for zero and near-zero GHG fuels (ZNZs) is essential to de-risk investment and avoid stranded assets, according to Ship & Bunker. However, the co-sponsors stress that demand certainty alone will not be sufficient — direct incentives are also needed to balance the extra costs of early-stage ZNZ adoption.
Flexibility for Ships Facing Constraints
Ship & Bunker reports that the co-sponsors acknowledged some vessels may struggle to meet GHG intensity targets due to technical limitations or restricted access to low-GHG fuels at the ports they call on. As a result, they are calling for flexibility to be incorporated into the framework to allow for a smoother, less costly transition, while still preserving a level playing field between early movers and vessels that need more time.
More broadly, according to Ship & Bunker, the group wants the IMO’s final measures to set international shipping on a well-to-wake pathway toward net-zero GHG emissions by or around 2050, supported by enforceable compliance mechanisms, long-term regulatory certainty, and provisions for a just transition — particularly for small island developing states and least developed countries.
Does This Matter to You?
The direction of the IMO’s Net-Zero Framework has a bearing on how quickly and predictably zero and near-zero marine fuels become commercially available and price-competitive. Ship & Bunker’s report indicates that a coalition of major maritime nations is pushing for demand certainty and cost-balancing incentives, which could shape future fuel availability, pricing structures and infrastructure investment at bunkering hubs.
Parties monitoring fuel transition timelines, compliance costs, or infrastructure planning may want to track how this proposal is received at the ISWG-GHG 22 session in September, as outcomes could influence longer-term fuel procurement and vessel compliance strategies. The source material does not detail specific timelines or cost figures beyond what is summarized above.
Gulf Bunkering does not provide operational or security guidance. This article is for informational purposes only. Operators should consult flag state authorities, P&I clubs, and relevant advisories for decisions relating to transit planning.
Sources: Ship & Bunker
