The postponement of the International Maritime Organization’s (IMO) Net-Zero Framework (NZF) has prompted shipowners to adopt a more pragmatic approach to decarbonisation investments, according to ABB, with the focus shifting to fuel efficiency and technological flexibility.

The Marine Environment Protection Committee meeting in October delayed the IMO’s decision to adopt the NZF, a framework intended to set a carbon price for ships from 2028, after member states were unable to reach consensus. The setback is expected to postpone adoption, acceptance, and enforcement by at least a year, with negotiations likely to encounter the same disagreements at future sessions.

Charlotte Nonnemann, VP, Regulatory & Public Affairs, Marine Systems, at ABB's Marine & Ports division, said that, "Regulatory uncertainty can discourage investments by shipowners, ports, energy providers, and bunkering operators."

"With the adoption, acceptance, and enforcement of the NZF subject to at least a one-year delay, expectations for widespread alternative fuel use by 2030 are fading," Nonnemann added.

The delay represents a further hindrance to the development of an alternative marine fuels market, already burdened by high production costs, supply chain limitations, and the lack of fuel standards, according to ABB. While the 2023 IMO decarbonization strategy remains in place, the postponement has consequences for fuel choices shipowners make for newbuilds and retrofits.

‘Net-zero realism’ takes hold

Nonnemann said the outcome of October’s IMO meeting signals a new mindset taking shape in the industry, one she characterises as “net-zero realism.” Shipowners are increasingly focused on strategies that can withstand multiple future regulatory pathways rather than committing to a single assumed fuel solution.

Over the next five years, she expects pragmatism to dominate, with owners targeting efficiency-focused investments that deliver immediate returns while capturing the “low-hanging fruit” of early-stage decarbonisation.

Complicating matters even more is the fact that the EU's Emissions Trading Scheme and FuelEU Maritime requirements are already in force. Owners and investors moving forward with newbuild or retrofit plans today will need assets which are adaptable to different decarbonisation targets through a lifespan of 25 years or more, according to Nonnemann.

Market conditions are adding another twist. Despite regulatory delays, shipowners are entering 2026 in a strong financial position following volatile but profitable freight and charter markets in 2025. Banks have also renewed their interest in maritime lending. As a result, many owners have the capital to invest, but are reluctant to commit to technologies tied to uncertain fuel pathways.

Technology flexibility emphasised

Jostein Bogen, Global Product Line Manager Electric Solutions at ABB's Marine & Ports division, said "plug and play" ship technologies, which deliver cost efficiency today and the flexibility to adapt to different decarbonisation scenarios, represent a sound investment.

"There is no doubt that regulatory uncertainty has impacted ROI decisions on green technologies, but demand for shipping services has not been diminished in the meantime: the need to optimise energy efficiency remains just as compelling," Bogen said.

He noted that ABB’s electric, automated and digital systems are built to be fuel-agnostic. Their power and propulsion platforms can integrate multiple future energy sources, including engines running on various fuels, battery energy storage, fuel cells, and even nuclear power.

Fragmented regulations on ship emissions also make it more imperative to monitor, report, and analyse data to ensure voyage route efficiency matches charter terms, Bogen added. "In the current situation, where regional and global regulators are out of step, owners need to be sure that their ships are and will be optimised for different outcomes."

Electric backbones and the long-term transition

Rather than focusing on specific future fuels, Bogen emphasised that structural flexibility will safeguard the industry’s long-term investments.

"Actually, energy efficiency will always be part of the most reliable transition strategy, because it offers ROI regardless of fuel type or regulatory scenarios," Bogen said. "Ship system flexibility is also constantly beneficial, but never more so than at the current time, where investors seek to hedge and future-proof vessels for new energy sources down the road."

He added that vessels built with an “electric backbone,” leveraging electrification, automation and digitalisation, are best positioned to adapt to shifting fuel technologies and decarbonization timelines. Such designs offer a practical response to today’s uncertainties while positioning owners to act quickly when global policy direction becomes clearer.