Leading shipping companies have come out and demanded changes to an upcoming United Nations (U.N.) deal seeking to cut fuel emissions from shipping vessels, in the latest setback for the embattled deal. Global shipping operations contribute to approximately 3% of global greenhouse gas emissions, although exact figures vary.
The so-called Net-Zero Framework deal, planned to be adopted by a U.N. panel next month, had already faced pushback from the United States, after the Trump administration announced its opposition to the deal earlier this year.
The latest setback against the Net-Zero Framework deal
In the latest obstacle for the deal, Frontline PLC, based in Cyprus and Bahri, based in Saudi Arabia, both came out against the deal, stressing the need for further changes to the proposed framework. Both companies are leading global oil tanker companies and pivotal to shipping. They jointly stated “grave concerns” about the deal, in an ominous sign for the deal’s prospects. About a dozen other shipping companies signed onto the statement.
In a quote provided to the news service Reuters, the companies jointly stated: “As it stands, we do not believe the IMO NZF will serve effectively in support of decarbonizing the maritime industry … nor ensure a level-playing field as intended.”
The Greek government, through Greek Shipping Minister Vassilis Kikilias, also stated this week that further changes and “improvements” were needed to the deal. The Greek government pressure adds to both U.S. government and private sector pressure ahead of the October deadline for the deal’s passage.
About the proposed Net-Zero Framework
The Net-Zero Framework would charge ships that do not comply with U.N.-mandated carbon limits and guidelines, in an effort to reduce emissions. When the framework was announced, it was also noted that the penalties were decided fairly in an attempt to not cause too much of a financial burden on shippers.
The global Net-Zero Framework deal was announced in April 2025, after extensive negotiations and discussions with U.N. member countries. From the start, there was a key problem: the U.S., the world’s leading superpower, was against the deal. The U.S. government threatened tariffs and other countermeasures against any country supporting the Net-Zero Framework, threatening to make shipping activities even more costly amidst global uncertainty.
