HQ Team
April 12, 2025: A landmark deal to reduce greenhouse emissions from global shipping is set to be formally adopted in October before coming into force in 2027.
The framework – agreed upon during the UN International Maritime Organization (IMO) Marine Environment Protection Committee – aims for net-zero emissions from the sector by 2050. The measures include a new fuel standard for ships and a global carbon pricing mechanism for emissions.
The deal, reached after years of intense negotiations, will apply to large ocean-going vessels with over 5,000 gross tonnage, collectively accounting for 85% of carbon dioxide emissions from the marine shipping fleet.
“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,” said IMO Secretary-General Arsenio Dominguez.
97% of merchant shipping fleet
The IMO is the UN specialized agency responsible for the safety and security of global shipping and the prevention of marine and atmospheric pollution by ships.
MARPOL Annex VI refers to provisions in the International Convention for the Prevention of Pollution from Ships, specifically addressing air pollution.
It comprises mandatory energy efficiency requirements for ships and has 108 Parties covering roughly 97% of the global merchant shipping fleet by tonnage.
Negotiations – which culminated on Friday in London – were particularly challenging. About a dozen countries – including the US – opposed the framework. It was ultimately put to a vote and passed.
The framework consists of a global fuel standard that will progressively lower the annual greenhouse gas fuel intensity of marine fuels, and a greenhouse gas pricing mechanism requiring high-emitting ships to pay for their excess pollution.
Financial rewards
Ships that exceed emissions limits will need to acquire remedial units to offset their excess pollution. Vessels operating with zero or near-zero emissions will be eligible for financial rewards, creating a market-driven push toward cleaner maritime transport.
An IMO Net-Zero Fund will collect revenue from the carbon pricing mechanism. These funds will support innovation, research, infrastructure and transition initiatives in developing countries.
It will also be used to mitigate negative impacts on vulnerable nations, such as small island developing states and least-developed countries, which bear the brunt of both climate change and economic pressures in the shipping sector.
The draft regulations will undergo formal adoption in October 2025.
If ratified during the IMO session, as expected, the measures will enter into force in 2027, giving the industry time to adapt to new requirements and invest in alternative fuels and technologies.
