The International Maritime Organization (IMO) Net-Zero Framework (NZF) 2050 marks a major shift in global shipping policy toward environmental sustainability. Its main goal is to ensure that the global maritime sector achieves net-zero greenhouse gas emissions by the middle of this century. While this objective aligns with the Paris Agreement and global aspirations to address climate change, the approach and practical realities of its implementation raise many questions about readiness, fairness, and economic implications which particularly for developing countries such as Malaysia.

From a positive perspective, this framework provides a strong push for green technology innovation and the transformation of the shipping industry toward long-term sustainability. It stimulates the development of alternative fuels such as methanol, ammonia, and hydrogen, as well as the adoption of more advanced energy-efficiency systems. Malaysia has the potential to become a regional leader in this field through its Blue Economy strategy, Green Port initiatives, and Green Shipping Corridor projects in the Strait of Malacca. This approach can also strengthen Malaysia’s position as a maritime logistics hub and international port that complies with global environmental standards.

However, in terms of practical implementation and economic equity, the IMO NZF presents significant challenges for developing countries. Malaysia’s shipping industry, which consists largely of small and medium-sized fleets, faces financial, technological, and human resource constraints in meeting these new standards. The cost of vessel transformation, engine system conversions, and green fuel adoption remains very high. Supporting infrastructure such as green fuel stations, storage facilities, and logistics networks is also not yet fully developed in the region.

Furthermore, the IMO policy appears to maintain a gap between developed and developing nations. Developed countries possess advantages in technology, access to carbon financing, and market power to implement energy transitions aggressively. In contrast, countries like Malaysia must bear the economic impacts of rising operating costs, which could ultimately pressure freight rates, port competitiveness, and the welfare of seafarers and small operators.

It is also noted that IMO is currently evaluating proposals to establish a Global Maritime Emissions Pricing Mechanism which essentially a carbon levy system on emissions from ships—aimed at encouraging green fuel use and funding the maritime energy transition. The proposal includes levy payments based on the amount of carbon emitted per tonne. However, differences in opinion remain between developed and developing countries regarding levy rates, implementation, and the distribution of levy revenues, which many view as still unfair to developing nations such as Malaysia.

In the context of regional law and policy, Malaysia must address this issue through a pragmatic approach based on the principle of Common But Differentiated Responsibilities (CBDR) as outlined in the United Nations Framework Convention on Climate Change (UNFCCC). Carbon transition planning should be gradual and supported by regional ASEAN cooperation, green financing mechanisms, and equitable technology transfer. However, it must also be acknowledged that a significant economic gap in the shipping sector exists even within the ASEAN context. The most recent emergency meeting of the Marine Environment Protection Committee (MEPC) at IMO, with a very tight vote among Member States, ultimately resulted in an unprogressive and non-conducive outcome: the discussion on the ratification and enforcement of the IMO NZF has been postponed for another one (1) year.

In conclusion, the IMO NZF is an important initiative toward sustainable shipping, but its implementation must balance global responsibilities with regional economic realities. Malaysia must not merely be a follower of international policies but should play an active role in formulating an inclusive, progressive, and sustainable national strategy so that this green maritime transformation truly becomes an opportunity, not a burden, for the future of the national shipping industry.

Zulin Farur
19 October 2025