The one-year postponement of the IMO’s Net Zero Framework (NZF) is a necessary and constructive step. It provides relief to shipping companies, particularly small and medium sized operators, who form the backbone of our industry, from disproportionate costs that would otherwise cascade down to consumers, fuelling inflation and undermining economic stability across the EU. This breathing space allows governments and stakeholders to reassess a policy which, in its current form, poses significant risks to European shipping and energy security.
That is why the Cyprus Union of Shipowners has urged the Government of the Republic of Cyprus and all EU Member States to vote against the NZF in its present form. The postponement must be used as an opportunity to build genuine consensus among major stakeholders under the auspices of the IMO, and to design policies that are both environmentally effective and economically sustainable. Only a unified, global approach can provide the regulatory stability and investor confidence required to achieve real progress toward net-zero shipping.
In the longer term, however, the risk of regulatory fragmentation remains significant. If the IMO framework continues to diverge from regional initiatives such as the EU ETS, operators could face overlapping compliance burdens, distorted competition, and investor uncertainty. Fragmentation discourages global investment in innovation and technology, as capital flows toward jurisdictions with clearer, more predictable rules.
We at CUS and our Members recognize the importance of coordinated engagement at the international level. The operational realities of tramp shipping must be fully reflected in future regulatory frameworks. To this end, we remain committed to closely monitoring the evolving IMO process, strengthening cooperation among members and aligned unions, and advancing a unified industry position based on technical feasibility, economic soundness, and shipping realities.
*President of the Cyprus Union of Shipowners
