Industry News
IMO defers decision on Net Zero Framework
Moldova and Montenegro accede to CTC accord The European Commission has officially confirmed that Moldova and Montenegro acceded to the Convention on a Common Transit Procedure (CTC) and the Convention on the Simplification of Formalities in Trade in Goods (SAD Convention) on 1 November 2025. With this development, the CTC comprises all current EU member states, the EFTA countries (Iceland, Norway, Liechtenstein and Switzerland), Türkiye (since 1 December 2012), the Republic of North Macedonia (since 1 July 2015), Serbia (since 1 February 2016), the UK (since 1 January 2021), Ukraine (since 1 October 2022), Georgia (since 1 February 2025) and now Moldova and Montenegro (from 1 November 2025) strengthening the integration of participating customs systems and simplifying trade flows across Europe. The two new CTC members will start operations as NCTS6 opt-out countries on 1 November, with a plan to become opt-in later in 2026.
It has been reported in the national press and specialist trade press that a majority of International Maritime Organization (IMO) member states narrowly voted last month to delay a decision on the Net Zero Framework (NZF) for global shipping by one year. This follows intense lobbying by the US and Saudi Arabia. The postponement, decided during an extraordinary meeting in London, was backed by oil-producing nations, China and major flag states like Liberia and Panama, while most EU countries, Norway and the UK opposed the move. The delay follows US President Donald Trump’s public opposition to the proposed carbon tax on shipping emissions, referring to it as a “green scam”. Observers believe that this influenced the vote. Trump’s intervention, combined with resistance from key allies, shifted momentum away from adopting the NZF — a framework that included a carbon tax and green fuel requirements. Had the vote
proceeded, the agreement risked rejection, which would have undermined the IMO’s credibility as a global regulator. BIFA, on behalf of its Members is disappointed at this result. The cost of decarbonising the sector, some argue, will be at least $3trillion dollars and the disruption will be considerable, including the need to establish new bunkering arrangements. Many argue that without the IMO introducing a universal approach to decarbonising maritime transport there is no business case to transition to new fuels, emitting less greenhouse gases. Also, the IMO-led framework is vital to prevent carbon leakage in maritime transport. The alternative will be a series
of inconsistent regional regulations. This will lead to a confusing patchwork of emission trading schemes, each with its own charging structure. Fragmentation would not only weaken decarbonisation efforts but also create unfair competitive conditions, particularly for European operators. The shipping industry and its clients’ need clarity, not further uncertainty. We do not pretend that the proposals were perfect; they were complex and there were significant gaps in detail such as the collection mechanism, but the two-year implementation period could have been used to refine the proposals and introduce a workable solution.
8 | November 2025
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