U.S. opposition helps delay IMO NZF decision

Federal Maritime Commission (FMC) Chairman Laura DiBella participated as part of the U.S. Delegation to MEPC 84, where she says, she helped reinforce constructive U.S. engagement to resolve the NZF impasse. During the week, the U.S. Delegation, including Chairman DiBella, met with over 20 delegations to encourage member states to explore all available options to achieve broad consensus. Chairman DiBella underscored the need for the full IMO membership to consider viable alternatives submitted by several other countries that would ensure industry stability while preventing harm to U.S. consumers.

One of those alternatives was proposed in a proposal submitted to the MEPC by Liberia, with the co-sponsorship of Argentina and Panama. It proposes a revised, pragmatic, and consensus‑building approach to defining and adjusting the trajectory of the Global Fuel Intensity (GFI) target.

Expect to hear a lot more on this approach in the weeks ahead.

“The NZF, championed by the European Union as a global version of its deeply unpopular regional Emissions Trading Scheme, would force American consumers to pay a carbon tax for shipments transiting international waters,” said a statement released by DiBella. “At the last IMO negotiation in October 2025, a major coalition of countries representing more than half of the world’s commercial fleet expressed uncertainty about the NZF’s implementation. As envisioned, ships out of compliance with the NZF’s strict fuel standards, which would have impacted 97% of the global fleet, would be liable to pay the tax, and these charges would then be passed along to consumers.  After a series of bilateral discussions, Chairman DiBella concluded that although NZF proponents may believe they have engaged in meaningful negotiations with all parties in the IMO, in reality the insistence of a minority bloc had previously overwhelmed the silent majority, until this week at the MEPC, when that silent majority finally found its voice.

“The U.S. will explore all potential remedial options to protect American consumers from a disputed and unneeded global carbon tax,” said the statement. “Chairman DiBella will ensure that the FMC’s role and statutory authorities remain at the forefront of the discussion, to include the Commission’s ability to monitor flag states that establish or follow laws or regulations that result in unfavorable shipping conditions in U.S. foreign trade.”

The International Chamber of Shipping (ICS), which has long advocated for proposals along the lines of the NZF, released this statement:

This week’s International Maritime Organization (IMO) Marine Environment Protection Committee meeting (MEPC 84) saw further deliberation between IMO Member States  on the future of the draft ‘IMO Net-Zero Framework’ (NZF) to decarbonize international   maritime transport. This followed the Extraordinary Session last October which had postponed a decision on whether to adopt the NZF for global implementation (subsequent to approval of a draft regulatory text in April 2025).

At the conclusion of this week’s MEPC meeting, Thomas A Kazakos, Secretary General
of the International Chamber of Shipping (ICS), made the following comments:

“The constructive dialogue that has taken place this week is hugely welcome,
although it is clear that many Member States are still unable to adopt a global regulatory framework unless further adjustments are made.

“The shipping industry is fully committed to achieving the ambitions of the 2023 IMO
GHG Strategy and has already delivered substantial GHG emissions reductions. It is
vital that governments move towards adoption of a comprehensive fit-for-purpose
global framework as soon as possible to enable the industry to further accelerate
its rapid transition to alternative energy sources.  “We therefore welcome the decision to convene additional negotiations in September
to which ICS intends to contribute ideas on a possible way forward to achieve the
necessary support amongst all Member States.”