IMO’s Net-Zero Framework Delay Exposes Gaps in Clean-Fuel and Carbon-Offset Plans

SINGAPORE, Oct 21 — The International Maritime Organization’s (IMO) decision to delay adoption of its Net-Zero Framework (NZF) by a year exposes key weaknesses in its current structure, according to Rystad Energy. The firm’s maritime decarbonization team found critical mismatches between clean-fuel supply and demand projections, warning that infrastructure limits threaten the industry’s transition timeline.

Clean-Fuel

The report also found the proposed carbon-trading system structurally imbalanced, with demand for Tier II offset units expected to exceed supply until 2035. This shortage could push prices to the upper penalty limit.

Rystad Energy cautioned that without a well-designed reward mechanism, the framework risks functioning mainly as a penalty system rather than a true decarbonization incentive.

Vice president Junlin Yu said the delay provides an opportunity to strengthen the NZF by addressing feasibility and fairness concerns, urging the IMO to use the time to craft a more realistic and equitable transition strategy for global shipping.

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