Last week’s decision at the IMO to adjourn the formal adoption of the Net-Zero Framework (NZF) raises the risk of increased regulatory fragmentation and the possibility that FuelEU will expand in scope. What investment decisions should owners make in the face of such huge regulatory uncertainty?

Shipping now pays directly for its emissions and carbon has a price. IG’s Head of Sustainability Trifon Tsentides looks at how the industry can best manage the financial implications of compliance.

The IMO has adopted a draft amendment to Annex VI of the MARPOL Convention approving a Net-Zero shipping policy framework by or around 2050. Set to take effect in 2028, the “J9 Bridge” style scheme as it is known, sets out a two-tiered carbon pricing mechanism & fuel standard, which if adopted late this year, will make shipping the first industry of any to have a global carbon price agreed with internationally mandated emissions reduction targets.