Nations have agreed to reduce greenhouse gas emissions from ships globally, with the aim for net zero emissions by 2050.
The International Maritime Organisation’s (IMO) ‘Net zero Framework’ combines mandatory emissions limits and greenhouse gas emissions pricing across the entire industry.
The measures, set to be formally adopted in October 2025 before coming into force in 2027, include a new fuel standard for ships and a global pricing mechanism for emissions.
The pricing mechanism will apply to a share of international shipping emissions from 2028, with an initial price of $100 (£76) per tonne of CO2.
This is expected to generate significant revenue, estimated to be between $11 billion (£8.4bn) – $13 billion (£9.9bn) annually.
The measures will become mandatory for large ocean ships more than 5,000 gross tonnage, which emit around 85% of the total emissions from international shipping, according to the IMO.
Under the draft regulations, ships must reduce, over time, their annual greenhouse gas fuel density (GFI) – i.e. how much greenhouse gas is emitted for each unit of energy used – and ships emitting above GFI thresholds will have to acquire remedial units to balance its deficit emissions, while those using zero or near-zero technologies will be eligible for financial rewards.
“Significant step”
IMO Secretary-General Mr. Arsenio Dominguez said: “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 modernise shipping and demonstrates that IMO delivers on its commitments.
“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.”
IMO Net Zero Fund
An IMO Net Zero Fund will be established to collect pricing contributions from emissions.
These revenues will be paid out to reward low emission ships; support innovation, research, infrastructure and just transition initiatives in developing countries; fund training, technology transfer and capacity building to support the IMO greenhouse gas strategy; and mitigate negative impacts on vulnerable states, such as small island developing states and least developed countries.
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