The Cyprus Union of Shipowners (CUS) has appealed to EU Member States, and in particular to the Government of the Republic of Cyprus, to vote against the proposed International Maritime Organisation (IMO) Net-Zero Framework (NZF).

The union explained that this would allow for more time to reach a wider consensus ahead of its adoption at the MEPC ES.2 session from October 14 to 17.

According to the statement, the NZF poses “a serious threat to the European shipping, economy, and energy security,” while also representing “a grave danger to small and medium-sized enterprises (SMEs)”, the backbone of European shipping.  

It was described as “a multi-billion-euro tax that does not reduce emissions but instead shifts the cost to end-consumers, fuelling inflation across the European Union.” 

The Union explained that the framework imposes exorbitant charges despite the lack of realistic technologies or infrastructure to ensure compliance. It relies on so-called “green” fuels, methanol, ammonia, hydrogen, and synthetic LNG, which, as the Union noted, are not available at industrial scale and consume more renewable energy in production than they yield.  

Rather than reducing emissions, it added, the framework diverts critical financial resources away from genuine technological and energy innovation, thereby slowing the transition to cleaner solutions. 

At the same time, the Union described the NZF as “a fiscal measure with socially unjust consequences.”  

Since shipping transports over 90 per cent of global trade, any additional cost imposed on ships will inevitably be passed on to the prices of goods and services, from food and medicines to raw materials and energy.  

“The result will be broad-based price increases,” it said, “a higher cost of living and intensified inflation.” 

Moreover, CUS referred to “a threat to fleet viability and the global supply chain.”  

It said the NZF’s implementation would lead to a supply shortage at a time when there are no mature or scalable alternatives to fill the gap.  

“As a result,” it noted, “the SMEs, being the backbone of EU shipping, will face competitive challenges resulting in a setback for the EU as a whole.” 

Such an outcome, the Union added, “would entail a permanent strategic setback for Europe, resulting in the loss of its global maritime leadership.”  

It continued that it would also mean “severe ecological damage,” since the premature dismantling and replacement of ships would generate massive waste and additional emissions.  

CUS further warned of “destabilization of global supply chains”, with delays, product shortages and higher transport costs, as well as “accelerating inflation and loss of purchasing power throughout Europe and, by extension, globally.” 

On Europe’s energy security, the Union stressed that the continent remains heavily dependent on LNG imports, which already reach Europe at more than double the US domestic price.  

It mentioned that under the NZF, this cost is projected to rise further, leading to energy-price surges, further inflationary pressure and a deepening crisis with disproportionate effects on households and industry. 

In addition, the statement reaffirmed that international shipping is “the most efficient and environmentally sustainable mode of transport.”  

Through technological innovation, operational optimisation and continuous investment, it explained, the industry has achieved significant emission reductions, even as transport volumes have multiplied. 

CUS also emphasised that 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 creation of a global and decarbonisation incentive scheme whose funds are re-invested amongst others in the shipping industry,” it stated.  

At the same time, the Union called for rejecting “unfair, ineffective, and damaging multi-billion taxation schemes, whether regional or not, with no experience or clear procedures over how such funds are utilised.” 

Finally, the Union stated that it “supports global policies of genuine environmental progress under the auspices of the IMO” and called upon the Government of the Republic of Cyprus and all EU Member States to vote against the current Net-Zero Framework to allow more time for consensus by major stakeholders. 

“Any solution,” CUS concluded, “should be founded on research, technological innovation, and realistic, science-based solutions that safeguard people, the economy, environment, and the industry, without crushing economies and consumers.”