The International Maritime Organization (IMO) has achieved another step towards establishing a legally binding framework to reduce greenhouse gas (GHG) emissions from ships globally, aiming for net-zero emissions by or around 2050. The IMO Net-zero Framework is the first in the world to combine mandatory emissions limits and GHG pricing across an entire industry sector.
Approved by the Marine Environment Protection Committee during its 83rd session (MEPC 83) from 7–11 April 2025 in London, the measures include a new fuel standard for ships and a global pricing mechanism for emissions.
These measures, set to be formally adopted in October 2025 before entry into force in 2027, will become mandatory for large ocean-going ships over 5,000 gross tonnage, which emit 85% of the total CO2 emissions from international shipping.
In closing the meeting, IMO Secretary-General Arsenio Dominguez commended the spirit of cooperation and commitment demonstrated by Member States this week. He stated:
“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.
“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.”
Beginning in 2028, ships on the world’s oceans must either transition to less carbon-intensive fuels or face substantial levies – $380 per tonne on the most intensive emissions and $100 per tonne on remaining emissions above a lower threshold. The measure aimed at supporting clean energy initiatives in shipping is expected to generate $30-40 billion by 2030 and average $10 billion annually.
The vote revealed significant divisions, with 63 countries including Japan, China, the EU, and India backing the measure, while 16 predominantly petro-states opposed it and 25 countries, including several Pacific Island nations, abstained. Threatening “reciprocal measures” against any fees charged to U.S. ships, the United States withdrew from the talks from the outset of the talks this week.
Conflicting reactions
While global shipping industry circles generally approved the measures, there was strong criticism from such groups as the Clean Shipping Coalition.
Guy Platten, Secretary General of the International Chamber of Shipping )ICS), called it a “historic moment” as shipping becomes the first sector with a globally agreed carbon price, though he also acknowledging that the framework was “not perfect in every respect. We recognise that this may not be the agreement which all sections of the industry would have preferred, and we are concerned that this may not yet go far enough in providing the necessary certainty. But it is a framework which we can build upon.”
“This is a major milestone for climate policy and a turning point for shipping. Our industry has long been labelled as ‘hard to abate,’ but record industry investment and a new global measure can turn the tide on that,” said Joe Kramek, President & CEO of the World Shipping Council. The WSC also noted that nearly 1000 renewable-capable vessels are expected to be on the water by 2030.
The agreement targets only an 8% absolute emission reduction by 2030, which falls significantly short of the IMO’s own target of 20%. The carbon intensity-based regulation also initially permits fossil fuel-based LNG which will, however, face increasing penalties throughout the 2030s.
“While the targets are a step forward, they will need to be improved if they are to drive the rapid fuel shift that will enable the maritime sector to reach net zero by 2050,” said Jess Fahnestock, Director of Decarbonization at the Global Maritime Forum.
As International Maritime Organization (IMO) negotiations crucial to climate action by the global shipping sector closed today, the Clean Shipping Coalition slammed IMO member states for falling far short of the UN body’s own 2030, 2040 and 2050 climate targets and failing the people and regions most vulnerable to climate change.
“This week, IMO member states squandered a golden opportunity for the global shipping sector to show the world how it can turn the tide on catastrophic climate heating, putting their own goals – eliminating the sector’s GHG emissions without leaving any countries behind – out of reach”, said Delaine McCullough, President of the Clean Shipping Coalition. “The longer the delay to complete a maritime energy transition to zero emissions, the more expensive it gets – and just like the impacts of climate heating, these costs hit Small Island Developing States (SIDS) and Least Developed Countries (LDCs) the hardest. Instead of setting a strong energy efficiency regulation, combined with an ambitious fuel standard and sufficiently high price on all GHG emissions from ships, the IMO instead chose low ambition and business as usual.”
In still blunter terms, John Maggs, Clean Shipping Coalition’s Representative at IMO, declared:
“The agreement reached on revision of the IMO’s Carbon Intensity Indicator this week is a total shipwreck.”
(Photos from IMO)