What It Means for Ship Owners
The International Maritime Organization (IMO) has taken a major leap forward in the global effort to decarbonize shipping. At the recent MEPC 83 session, draft regulations were approved that will set mandatory fuel standards and introduce GHG emissions pricing across the maritime sector – marking the first global framework of its kind.
A Sector-Wide Net-Zero Push
The IMO Net-Zero Framework, targeting net-zero emissions by around 2050, combines legally binding emissions limits and a pricing mechanism for greenhouse gas (GHG) emissions. It applies to ocean-going vessels over 5,000 GT, which account for 85% of international shipping CO₂ emissions.
Key elements of the framework include:
- Global Fuel Standard: Ships must gradually reduce their greenhouse gas fuel intensity, using a “well-to-wake” approach.
- GHG Pricing: Vessels emitting above set limits must purchase “remedial units” or transfer “surplus units” from more efficient ships.
- Financial Incentives: Ships using low or zero-emission technologies will be rewarded.
The IMO Net-Zero Fund
A new IMO Net-Zero Fund will manage contributions from the emissions pricing system, directing funds to:
- Incentivize low-emission shipping
- Support innovation, infrastructure, and training
- Aid vulnerable and developing states in a just transition
What’s Next?
- October 2025: Formal adoption of the framework
- 2026: Implementation guidelines approved
- 2027: Framework enters into force
Why Ship Owners Should Pay Attention
This framework will reshape the economic and regulatory landscape for shipping:
- Compliance will directly impact operating costs
- Proactive investment in clean technology could unlock financial incentives
- Participation in surplus unit markets may offer strategic advantages
As the world steers toward zero-carbon shipping, this is a pivotal moment. Ship owners, now is the time to prepare, adapt, and lead.