DNV representative calls for pragmatism amidst IMO Net-Zero Framework regulatory stall
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A 12-month delay regarding work towards consensus on the International Maritime Organization (IMO) Net-Zero Framework has given more time for the shipping industry to develop a pragmatic approach towards maritime decarbonisation, believes a classification society DNV representative.
Gustad Hormazdi, Business Development Director, Maritime, DNV made the following observation during ‘The Rise of LNG as a Sustainable Marine Fuel’ panel discussion session at the Asia Gas Markets Conference 2025 on Tuesday (28 October).
Hormazdi highlighted the complex interplay between demand, supply, and regulatory clarity as hurdles for the maritime industry’s transition towards decarbonisation, including for the adoption of liquefied natural gas (LNG) as a bunker fuel.
While there has been a large number of LNG-fuelled vessels on order, the supply infrastructure for LNG bunkering needs to keep pace. He observed shipyards in China and Korea are demonstrating a strong appetite for building LNG Bunker vessels, indicating scaling up production can be achieved once demand solidifies.
However, he cautioned investor hesitation persists due to regulatory uncertainty, despite motivators such as the EU Emissions Trading System (EU ETS).
“DNV actively works with energy companies, charterers, and owners to analyse various scenarios and has even submitted a white paper to the IMO (Report of the Comprehensive impact assessment of the basket of candidate GHG reduction mid-term measures) on tariffs and penalty schemes to help shape acceptable policy routes,” he shared.
Addressing DNV’s stance, Hormazdi explained its Maritime Forecast to 2050 and Energy Transition Outlook reports advocate for a balanced and pragmatic approach to the life cycle assessment of marine fuels. This position aims to support early adopters by preventing overly theoretical approaches that could hinder investment in renewable and near-zero fuels.
Regarding the IMO’s decision to delay the Net-Zero Framework, Hormazdi described it as an delay in decision making noting while April 2025 targets were initially well-received subsequent discussions revealed numerous unresolved technical and governance issues.
These included questions about compensating for near-zero fuels, correction factors (within the guidelines related to GFI), specific lifecycle assessment methodologies, and the management of a proposed fund of between USD 10 to 15 billion annually.
He noted 57 countries voted in favour of adjournment, 49 countries opposed, and 21 abstained – underscoring divided opinions towards adoption of the IMO Net-Zero Framework.
Moving ahead, Hormazdi suggested “book-and-claim” mechanisms for biomethane could accelerate decarbonisation provided if issues of trust, assurance, and tagging are adequately addressed.
He also acknowledged the positive impact of the EU ETS and other decarbonisation measures on marine fuel choices, leading to immediate offsets for using energy.
Related: DNV on net-zero shipping: Key findings from latest Maritime Forecast
Related: DNV: Fleet readiness surges ahead of alt bunker fuel supply – green transition at tipping point
Related: IMO: Discussions on adoption of Net-Zero Framework adjourned to 2026
Photo credit: S&P Global
Published: 5 November 2025
