The Cyprus Union of Shipowners (CUS) is making an urgent appeal to the Member States of the European Union — and in particular to the Government of the Republic of Cyprus — to vote against the proposed International Maritime Organization (IMO) Net-Zero Framework (NZF), which is scheduled for adoption at the MEPC ES.2 session (14–17 October).

According to the Association, the framework, as it stands, represents a severe threat to shipping, the European economy, and energy security, by imposing a multibillion-euro “tax” without genuine environmental gain. The CUS warns that the implementation of the NZF would disproportionately impact small and medium-sized enterprises (SMEs), fuel inflation, and undermine the sustainability of the European fleet, while calling for an extension of discussions toward a more realistic, technologically mature, and fair approach to the decarbonization of shipping.

Full Announcement

The Cyprus Union of Shipowners (CUS) urges the EU Member States, and especially the Government of the Republic of Cyprus, to vote against the proposed Net-Zero Framework (NZF) of the International Maritime Organization (IMO), so that more time may be granted for broader consensus before adoption at the MEPC ES.2 session (14–17 October).

As currently drafted, the NZF poses a serious threat to shipping, to Europe’s economy, and to its energy security, while also delivering a heavy blow to small and medium-sized enterprises (SMEs) — the backbone of European shipping.

In essence, the framework represents a multibillion-euro tax that does not reduce emissions but rather shifts the burden onto end consumers, driving inflation throughout the European Union.

The NZF imposes excessive charges despite the lack of realistic technologies or infrastructure to enable compliance. It relies on so-called “green” fuels — methanol, ammonia, hydrogen, and synthetic LNG — which are not available at industrial scale and consume more renewable energy to produce than they ultimately deliver.

Instead of reducing emissions, the framework diverts crucial financial resources away from genuine technological and energy innovation, thereby slowing the transition to cleaner solutions.

Shipping carries over 90% of global trade.
Any additional costs imposed on ships will inevitably be passed on to the prices of all goods and services — from food and medicines to raw materials and energy.
The result will be widespread price increases, higher living costs, and intensified inflation.

Implementing the NZF will lead to supply shortages at a time when no mature or scalable alternatives exist to fill the gap.
As a result, SMEs — the backbone of the EU’s maritime sector — will face competitive disadvantages, leading to setbacks for the EU as a whole.

Such an outcome would mean:

• A permanent strategic setback for Europe, with the loss of its global shipping leadership.
• Serious ecological harm, as premature vessel replacement would generate massive waste and additional emissions.
• Disruption of global supply chains, causing delays, shortages, and higher transport costs.
• Accelerated inflation and loss of purchasing power across Europe and beyond.

Europe remains heavily dependent on LNG imports, which currently arrive at more than double the U.S. domestic price.
Under the NZF, these costs are expected to rise even further, driving up energy prices, inflationary pressures, and deepening the energy crisis — with disproportionate impacts on households and industry.

International shipping is the most efficient and environmentally sustainable mode of transport.
Through technological innovation, operational optimization, and continuous investment, the industry has significantly reduced emissions, even as trade volumes have multiplied.

Shipping is a pillar of the Cypriot economy and a strategic sector for Europe as a whole.
Cyprus, as a major maritime nation, must support the European consumer and the development of a global incentive-based decarbonization system, whose revenues would be reinvested into the maritime industry — while rejecting unfair, ineffective, and damaging multibillion-euro tax schemes, whether regional or global, that lack transparency and clear mechanisms for how funds will be used.

The Cyprus Union of Shipowners supports global policies of meaningful environmental progress under the IMO’s auspices — and therefore calls on the Government of the Republic of Cyprus and all EU Member States to vote against the current IMO Net-Zero Framework (NZF), to allow more time for consensus among key stakeholders.

Every solution, the Association stresses, must be based on research, technological innovation, and realistic, scientifically grounded approaches that protect people, the economy, the environment, and industry, without crushing economies and consumers.