CMB.Tech IMO Postpones Vote on Adoption of Net Zero Framework

On Friday afternoon, news broke—confirming earlier speculation on Thursday—that the IMO has postponed the vote on adopting the Net-Zero Framework by one year. The delay followed intense lobbying against the measures, led by the US and Saudi Arabia. In Friday's vote, 57 countries supported the delay (including the US, China, Panama, and Liberia), while 49 opposed (including most EU member states). The path forward for shipping emissions regulation remains unclear, with renegotiation potentially required given the stark divide among nations. The outcome also raises the risk of increased regional fragmentation in emissions regulation. While adoption of the mid-term measures could have served as a catalyst for CMB.TECH to secure long-term charter contracts, the limited impact of alternative fuel capex—estimated at just 2% of GAV—suggests valuation implications should not be overstated. We continue to see valuation support from robust shipping rates and the potential for rapid deleveraging, underpinned by strong asset values. Buy rating and €11 TP reiterated.