US rejects completely IMO's NZF

Marco M. Sylvester, Deputy Assistant Secretary for Transportation Affairs of the US Department of State , took a clear position on the decarbonization of shipping and the so-called Net-Zero Framework (NZF) of the International Maritime Organization (IMO) .

Participating in the ministers' panel, as part of the 16th Greek Capital Link Maritime Conference, together with Shipping Minister Vassilis Kikilias, Cyprus' Deputy Shipping Minister Marina Hatzimanoli and Malta's Transport Minister Chris Bonett, Mr. Sylvester was clear: "Common sense is needed," he said regarding the NZF, while also distinguishing his position regarding the IMO.

In fact, while the ministers of the three European countries - which represent the vast majority of the European fleet - agreed that, although a change in sailing is needed, this should be done through the IMO, the American representative was quick to clarify: "The US position on the IMO is that it must maintain its character."

"A threat to IMO"

In particular, Mr. Sylvester clarified that what is often overlooked is that US opposition to the NZF does not constitute a withdrawal from international cooperation.

"On the contrary, we consider the NZF to be a threat to the IMO, as it would fundamentally change its role and mission, transforming it from a technical regulatory body for safety and security to a global regulator of climate policy. This is inconsistent with neither the mission of the IMO nor with the interests of the United States," he stressed.

Regarding the way forward, the US official noted that the US essentially sees two alternatives: "The first is to recycle the conflicts and disagreements of last October, which did not benefit anyone. The second is toleave behind a framework that hinders progress. Only if we critically address it and set it aside can a meaningful and productive dialogue begin."

At the same time, the US is proposing some changes that will ensure that states remain accountable to their citizens.

Explicit acceptance of the regulations will require their formal ratification by states, which precludes the possibility for governments to claim that regulations were imposed on them by the IMO.

Finally, Mr Sylvester called on the shipping industry to take a leadership role and state clearly what is practically feasible. “Net zero emissions targets will ultimately burden consumers, but they primarily burden the industry. So the idea that the shipping industry should not have a say in decisions that directly affect them is unrealistic,” he said.

The Greek side

Vassilis Kikilias was clear, however, regarding Greece's position. The Minister of Shipping emphasized that "when you impose taxes on shipping, they pass from the ship to the charterer and from there to the consumer. And this is because there are ambitions to use "green" fuels that do not exist today, and in infrastructure that also does not exist today."

As the minister emphasized, "about 80% to 90% of world trade is transported by sea. The decisions that will be made will determine whether or not we will face a widespread problem, especially with regard to taxation and the transition to the global energy framework. Some may argue that all of this is a logical development.

On the other hand, however, what is really happening - and unfortunately we are experiencing it - is that ships are required to switch to new fuels or to fuels that currently represent only 0.5% of global availability.

There is talk of billions in investments in Europe and annual costs of around 100 to 300 billion euros. Will shipowners take on this burden? I don't believe so. This cost will be passed on to freight rates and, ultimately, to the final consumer."

According to him, "the Greek government and the Greek Prime Minister tried to make it clear from an early stage that our policies have a direct impact on the frequency and intensity of these phenomena. That is precisely where our stance is taking shape.

We must support efforts for a global approach. Yes, we are pursuing a greener path. But we cannot harm our societies. We want a cleaner planet, but we also want societies and people that can survive and thrive.”

"Realism is required"

For her part, Ms. Hatzimanoli emphasized that "we must be realistic. We started to legislate for shipping, without the shipping industry knowing it."

The Deputy Minister of Shipping of Cyprus asked all IMO member states to exercise restraint and listen to the shipping industry, so that, as she said, "we are ready to lead when the time comes."

Finally, Mr. Bonett raised the big issue of the unity of the European Union. "The Union must become a Union again," he noted characteristically.

source: naftemporiki.gr

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