Saudi Arabia and UAE Call for Alternatives to IMO Net-Zero Framework
Key Takeaways
- •Saudi Arabia and the UAE submitted concerns to the IMO arguing that uniform global compliance costs under the Net-Zero Framework would create uneven economic burdens across different shipping routes, commodities, and countries.
- •The two nations warn that the framework's distance-based structure disproportionately increases delivered goods costs for longer routes, disadvantaging remote exporters and import-dependent economies.
- •The IMO's Net-Zero Framework is a key component of its strategy to achieve net-zero shipping emissions by around 2050, targeting an industry responsible for approximately 3% of global greenhouse gas emissions.
- •The framework failed to secure a final vote in October 2025 due to opposition from a US-Saudi-led bloc, postponing a decision by one year.
- •Inter-sessional working group meetings scheduled for September and November 2025 aim to build broader consensus ahead of MEPC 85, reflecting an ongoing divide between climate-vulnerable nations and fossil-fuel-dependent economies.
Saudi Arabia and the United Arab Emirates, both major oil-producing nations, have called for alternatives to the International Maritime Organization's (IMO) Net-Zero Framework (NZF), warning that the current proposal could disproportionately affect long-haul trade and remote economies.
The NZF forms a central part of the IMO's strategy to reduce greenhouse gas emissions from international shipping, which accounts for approximately 3% of global emissions. Under the revised GHG strategy adopted in 2023, the IMO is targeting net-zero emissions from shipping by or around 2050, with the NZF establishing an economic mechanism to price greenhouse gas emissions from vessels above certain thresholds.
The two countries submitted their concerns to the IMO last month, ahead of the first inter-sessional working group meeting scheduled for September 1–4, 2025. A second inter-sessional meeting is planned for November 23–27, ahead of the Marine Environment Protection Committee's 85th session (MEPC 85), set for November 30–December 3.
In their submission, Saudi Arabia and the UAE argue that a uniform global compliance cost would not produce an even economic burden across shipping routes, commodities, and countries.
"In shipping, cost incidence is not uniform because freight markets and trade demand are not uniform," the submission stated. "These features imply that a uniform global compliance cost can produce uneven real-world burdens."
The two countries also warned that compliance costs under the NZF would scale with both fuel consumption and voyage distance, embedding what they described as geographic asymmetry.
"The IMO Net-Zero Framework also embeds geographic asymmetry through a distance-based markup," they said. "This increases the delivered cost of goods more sharply for longer routes, which can disadvantage remote exporters, long-haul importers, and trade-dependent economies, particularly import-dependent economies."
They further cautioned that the impact could be exacerbated during tight freight markets, when operational adjustments such as speed reductions reduce effective capacity and amplify freight rates.
The positions of Saudi Arabia and the UAE reflect a broader divide among IMO member states, where climate-vulnerable nations—particularly Pacific island states—have pushed for more stringent measures, while fossil-fuel-dependent economies have urged caution about trade and economic impacts.
Saudi Arabia and the UAE asked the working group to consider alternative approaches that address trade impacts, cost incidence, and distance-based asymmetries.
The NZF failed to secure a final vote in October 2025 amid opposition from a US-Saudi-led bloc, resulting in a decision being postponed by one year. The upcoming inter-sessional meetings in September and November are intended to build broader consensus ahead of MEPC 85.
Source: Ship & Bunker
