The U.S. Rejection of the IMO “Net-Zero Framework” Proposal

On August 12, 2025, the United States determined not to back the International Maritime Organization’s (IMO) Net-Zero Framework plan, which intended to lower global shipping greenhouse gas emissions to net-zero by 2050.

Understanding the IMO’s Proposal

The IMO, a United Nations specialized agency responsible for regulating shipping, developed the Net-Zero Framework to address climate change. Here are the main points of the proposal:

• Net-Zero Goals: The goal is to achieve zero greenhouse gas emissions from shipping by 2050.
• Targets for Ships: The plan particularly targets large ships (over 5,000 gross tonnage) that contribute significantly to shipping emissions—about 85% of the sector’s carbon dioxide emissions (a harmful greenhouse gas).
• Fuel Standards: The framework includes rules for using cleaner fuels and aims to gradually enforce stricter fuel quality and emission standards.
• Emissions Pricing: A system would be put in place where ships exceeding emissions limits would have to buy credits or pay fines, helping generate funds for clean technology and supporting developing countries.

The U.S. Position

The U.S. government, led by key officials such as Secretary of State Marco Rubio, opposed the framework. Here’s why:

• Concerns Over Costs: The U.S. officials described the plan as a “global carbon tax,” which they believe would increase costs for American consumers and businesses. They feared that it would make shipping more expensive by forcing the use of costly and less readily available fuels.
• Impact on U.S. Technologies: They argued that the framework would overlook American innovations like liquefied natural gas (LNG) and biofuels, which could play a vital role in reducing emissions but are not prioritized in the proposal.
• Retaliation Threats: The U.S. administration even suggested possible retaliation against countries that support the framework.

This rejection of the IMO’s proposal aligns with a broader U.S. trend observed during the Trump administration, which also withdrew from the Paris Agreement, a major international climate pact. The U.S. leadership views many international climate agreements as potentially beneficial to countries like China while harming American economic interests.

This rejection of the IMO’s proposal fits a larger U.S. trend noted during the Trump administration, which also exited the Paris Agreement, a global climate agreement.

The United States will not accept any environmental agreement that harms the interests of the American people. The International Maritime Organization’s proposal for a “Net-Zero Framework” is a tax on Americans levied by an unaccountable UN organization. @SecDuffy,…

— Secretary Marco Rubio (@SecRubio) August 12, 2025

Criticism of the Framework

Despite the support from 63 countries (including EU nations and India), the Net-Zero Framework has its critics:

• Insufficient Targets: Environmental groups, such as the Clean Shipping Coalition, argue that the proposal does not meet the more ambitious climate goals outlined in the Paris Agreement, particularly the target of limiting global warming to 1.5°C.
• Loopholes: Critics also point out that the framework has weaknesses, like allowing the use of biofuels that may not account for their indirect emissions, thus undermining the integrity of the emissions reduction goals.

Bill Gates’ Involvement in the Maritime Industry

Bill Gates’ involvement in the maritime industry highlights his commitment to reducing carbon emissions through nuclear power and hydrogen technologies. By supporting innovative solutions and collaborating with organizations like Nemo, he aims to lead the way towards a more sustainable future for shipping, helping to tackle the urgent challenge of climate change.

• Nuclear Energy Maritime Organisation (Nemo):
  • Gates is a key player in Nemo, a group working on global standards for using nuclear power in maritime settings.
  • Nemo has been recognized as a non-governmental organization (NGO) by the International Maritime Organization (IMO) and attends meetings with the International Atomic Energy Agency (IAEA).
  • The organization’s goal is to ensure safe deployment, operation, and decommissioning of nuclear energy at sea.
• TerraPower:
  • Gates founded TerraPower, a company specializing in small modular reactors (SMRs) that generate nuclear energy efficiently.
  • This company is also a founding member of Nemo, emphasizing Gates’ commitment to nuclear technology in maritime applications.

• Decarbonization Efforts:
  • The shipping industry emits over a billion tons of greenhouse gases each year, which is about 3% of total global emissions.
  • Gates’ initiatives seek to help the shipping industry reach net-zero emissions through innovative technology.

• Hydrogen Fuel Cells:
  • Besides nuclear, Gates is also exploring hydrogen as a fuel source for ships.
  • The superyacht “Breakthrough,” linked to Gates, is designed to use liquid hydrogen fuel cells, potentially cutting emissions by up to 90%.
  • Although this technology shows promise, challenges like limited refueling stations for hydrogen remain a barrier to widespread adoption.
• Past Ventures:
  • Gates has encountered setbacks in the maritime industry, like the Nautilus Lab project, which did not meet expected success due to a misunderstanding of market needs.
  • Despite past challenges, Gates is now focused on long-term transformative solutions for cleaner shipping.
• Support for Innovative Technologies:
  • The Gates Foundation also backs projects aimed at zero-carbon shipping, such as Flibe Energy’s molten salt reactor design.
  • This support aligns with the Foundation’s broader goals of improving global health, development, and education, which are all tied to addressing climate change.

• Nemo’s New Role
  • The Nuclear Energy Maritime Organisation (Nemo) has received consultative status as a non-governmental organization (NGO) from the International Maritime Organisation (IMO).
  • This approval allows Nemo to take a more active role in international discussions and policies regarding nuclear energy.
• Purpose of Nemo
  • Founded in London in the previous year, Nemo aims to create global standards for nuclear energy in maritime settings, promoting its use in shipping and offshore energy systems.
  • The organization focuses on the safe deployment, operation, and eventual decommissioning of nuclear power at sea.
• Collaboration with International Bodies
  • With its new status, Nemo can now regularly attend meetings of the International Atomic Energy Agency (IAEA).
  • This engagement provides an opportunity for Nemo to share expert opinions and offer guidance on the safe integration of nuclear technologies in maritime applications.
• Significance of the Atlas Initiative
  • Nemo will participate in the IAEA’s upcoming initiative called Atomic Technologies Licensed for Applications at Sea (Atlas), which starts later in 2025.
  • The Atlas program aims to establish regulatory frameworks that will support the development and use of nuclear energy in marine environments.
• Importance of Nuclear Innovation
  • Mamdouh El-Shanawany, Nemo’s chairman, indicated that this achievement highlights the increasing importance of nuclear technology for global energy security and decarbonization efforts.
  • The organization’s work is viewed as a crucial step in addressing global energy and environmental challenges.
• Founding Members and Their Expertise
  • Nemo boasts a strong foundation with contributions from notable organizations:
    • HD Korea Shipbuilding & Offshore Engineering: A major player in shipbuilding.
    • TerraPower: A prominent U.S. company specializing in small modular reactors (SMRs), co-founded by Bill Gates.
    • Westinghouse EC: Renowned in the nuclear energy sector.
    • Lloyd’s Register: A classification society that ensures marine safety and environmental protection.
    • Seaborg Technologies: Known for innovations in molten salt reactors.

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