The International Maritime Organization’s (IMO) Net Zero Framework sets a course for global shipping to reach net zero emissions by or around 2050. The framework combines mandatory reduction targets with a greenhouse gas (GHG) pricing mechanism. Its GHG Fuel Intensity (GFI) standard is intended to reward early adopters of clean fuels while penalizing higher-emitting options.
WinGD Ltd. CEO Dominik Schneiter said that while the company supports the framework, it risks falling short without earlier clarity on incentives and calculation methods. “Without strong incentives and clearer rules, the decarbonisation course risks drifting,” Schneiter said.
One concern is that the financial reward for vessels using zero or near-zero emission energy sources is not expected to be determined until March 1, 2027, only nine months before the rules come into force. WinGD stated that this creates uncertainty for shipowners making long-term investment decisions. If the reward is priced too low, “operators may find it makes more commercial sense to ‘pay to pollute’ instead,” the company noted.
WinGD also pointed to outdated default emissions factors used in the framework. The company highlighted methane slip factors applied to liquefied natural gas (LNG) engines, noting that the current values are based on the first generation of technology introduced a decade ago.
According to WinGD, improvements in its X-DF engines have reduced methane slip by 53–70%, but ship operators can only benefit from lower GFI penalties if they undergo additional certification procedures.
Another issue raised is the use of emissions intensity rather than total emissions when determining penalties. WinGD said one of its models showed that an engine with lower total fuel use and GHG emissions could face higher penalties because of the calculation method. The company warned that this approach risks discouraging genuine innovation and could expose the framework to accusations of greenwashing.
WinGD concluded that the Net Zero Framework has the potential to guide the industry toward meaningful decarbonisation, but without timely decisions on reward values and emissions calculations, its effectiveness may be compromised.
WinGD Ltd. is a Swiss engineering company headquartered in Winterthur. It designs two-stroke engines for the shipping industry and is a wholly owned subsidiary of China State Shipbuilding Corporation (CSSC), one of the world’s largest shipbuilding groups.
International Maritime Organization (IMO) is a specialized agency of the United Nations established in 1948. It is responsible for setting global standards for shipping safety, environmental performance, and the facilitation of international maritime trade.