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With no clear consensus on the most viable alternative fuels, shipowners face tough choices as the industry pushes ahead with decarbonization. (Photo: iStock)
As the global shipping sector enters a pivotal phase in its net-zero transition, political tensions have added new uncertainty. Just ahead of a crucial vote at the International Maritime Organization (IMO), US President Trump threatened tariffs and visa restrictions on the nations backing a carbon levy, prompting a one-year delay in the planned adoption of carbon pricing.
Amid headwinds in the net-zero transition, the rollout of a shipping carbon levy has been put on hold, exposing divisions within the IMO. Member states, shipowners, and fuel suppliers remain at odds over the Net-Zero Framework (NZF), with debates centered on financial risks posed by the levy, the absence of a global fuel certification system, and uncertainties around alternative fuel technologies and market viability.
The delay in implementing the carbon pricing scheme has given shipping companies a temporary policy reprieve. But with the long-term push toward decarbonization unchanged, the question now is how the industry should chart its course for alternative fuels.
