Charting a course to Net-Zero for global shipping
Draft amendments approved for global shipping
Measures that include a new fuel standard for ships as well as a global pricing mechanism for emissions are set to be formally adopted by the International Maritime Organisation in October this year and come into force in 2027.
Approved by the Marine Environment Protection Committee during its 83rd session (MEPC 83) from 7–11 April 2025, the measures will become mandatory for large ocean-going ships over 5,000 gross tonnage, which emit 85% of the total CO2 emissions from international shipping.
The IMO Net-zero Framework is the first in the world to combine mandatory emissions limits and GHG pricing across an entire industry sector.
“The approval of draft amendments to MARPOL Annex VI mandating the IMO net-zero framework represents another significant step in our collective efforts to combat climate change, to modernize shipping and demonstrates that IMO delivers on its commitments,” noted the IMO Secretary-General Arsenio Dominguez, at the close of the meeting.
“Now, it is important to continue working together, engaging in dialogue and listening to one another, if we are to create the conditions for successful adoption.”
Key elements of the IMO Net-Zero Framework
The IMO Net-Zero Framework will be included in a new Chapter 5 of Annex VI (Prevention of air pollution from ships) to the International Convention for the Prevention of Pollution from Ships (MARPOL).
MARPOL Annex VI currently has 108 Parties, covering 97% of the world’s merchant shipping fleet by tonnage, and already includes mandatory energy efficiency requirements for ships.
Under the draft regulations, ships will be required to comply with:
⚓︎ Global fuel standard: Ships must reduce, over time, their annual greenhouse gas fuel intensity (GFI) – that is, how much GHG is emitted for each unit of energy used. This is calculated using a well-to-wake approach.
⚓︎ Global economic measure: Ships emitting above GFI thresholds will have to acquire remedial units to balance its deficit emissions, while those using zero or near-zero GHG technologies will be eligible for financial rewards.
Ensuring compliance
There will be two levels of compliance with GHG Fuel Intensity targets: a Base Target and a Direct Compliance Target at which ships would be eligible to earn “surplus units”.
Ships that emit above the set thresholds can balance their emissions deficit by:
⚓︎ Transferring surplus units from other ships;
⚓︎ Using surplus units they have already banked;
⚓︎ Using remedial units acquired through contributions to the IMO Net-Zero Fund.
IMO Net-Zero Fund
The IMO Zet-Zero Fund will be established to collect pricing contributions from emissions. These revenues will then be disbursed to reward low-emission ships as well as to support innovation, research, infrastructure and just transition initiatives in developing countries.
In addition, the fund will also invest in training, technology transfer and capacity building to support the IMO GHG Strategy; and mitigate negative impacts on vulnerable States, such as Small Island Developing States and Least Developed Countries.
1440