IMO approves global net zero emissions regulation for shipping

IMO approves the first global net zero emissions regulatory framework for shipping, including emissions caps and greenhouse gas pricing, which will come into force from 2027.

IMO approves the first global net zero emissions regulation for shipping (Photo: Phaata)

The International Maritime Organization (IMO) has taken another important step towards establishing a mandatory regulatory framework to reduce greenhouse gas (GHG) emissions from ships globally, with the goal of achieving net zero emissions by or near 2050.

The IMO Net-zero Framework is the first in the world to combine mandatory emissions caps and a greenhouse gas pricing mechanism across an entire industry.

Adopted by the Marine Environment Protection Committee (MEPC) at its 83rd session (MEPC 83) from 7 to 11 April 2025, the new measures include a global fuel standard for ships and a global emissions pricing mechanism.

The measures are expected to be formally adopted in October 2025 and enter into force in 2027, making them mandatory for ships over 5,000 gross tonnage – accounting for around 85% of all CO2 emissions from international shipping.

At the end of the meeting, IMO Secretary-General Arsenio Dominguez welcomed the spirit of cooperation and commitment from Member States. “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,” he said.

“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 framework will be incorporated into the new Chapter 5 of Annex VI (Prevention of Air Pollution from Ships) of the International Convention for the Prevention of Pollution from Ships (MARPOL).

Marpol Annex VI currently has 108 Parties, representing 97% of the world’s merchant fleet by tonnage, and already includes mandatory energy efficiency requirements for ships.

The framework aims to deliver on the climate targets set out in IMO’s GHG Strategy 2023, accelerate the adoption of low- and near-zero-emission fuels and technologies, and support a just and inclusive transition.

According to the draft regulations, ships will be required to comply with:

1. Global Fuel Standard: Ships must progressively reduce their annual greenhouse gas fuel intensity (GFI) – that is, the amount of emissions per unit of energy used. Calculated using the well-to-wake method.

2. Global Economic Mechanism: Ships that exceed the GFI will be required to purchase offsets to balance the excess emissions, while ships using zero or near-zero GHG technologies will be eligible for financial rewards.

Ensuring Compliance

There are two levels of GFI compliance:

• Base Target

• Direct Compliance Target – achieving this level will result in the issuance of “surplus units”

Vessels that exceed the emission threshold can offset their emissions by:

• Transferring surplus units from other ships;

• Using stored surplus units;

• Purchasing recovery units through contributions to the IMO Net-Zero Fund.

IMO Net-Zero Fund

This fund will collect emissions pricing contributions and reallocate them to:

• Reward low-emitting ships;

• Support innovation, research, infrastructure and a just transition in developing countries;

• Fund training, technology transfer and capacity building;

• Minimize negative impacts on vulnerable countries such as small island states and least developed countries.

Next steps

Once approved, the draft amendments to MARPOL Annex VI will be circulated to IMO Member States and will go through the following stages:

• October 2025 (MEPC/ES.2): Formal adoption at a special session of MEPC

• Spring 2026 (MEPC 84): Approval of detailed implementation guidelines

• 2027: Entry into force after 16 months under the provisions of MARPOL

Other outcomes of MEPC 83

The meeting also discussed a range of issues related to the protection of the marine environment caused by maritime activities, including:

• Adoption of the 2025 Action Plan to combat marine plastic litter;

• Progress in the review of the Ballast Water Management Convention;

• Approval of the proposal to designate the North-East Atlantic as an Emission Control Area (ECA) and consensus designation of two particularly sensitive areas off the Pacific coast of South America;

• Approval of the work plan for the development of a legal framework for Onboard Carbon Capture Storage systems (OCCS);

• Approval of the amendments to draft regulation 27 of MARPOL Annex VI on access to the IMO Data Collection System;

• Adoption of the amendments to the 2021 Guidelines on the operational carbon intensity reduction factors relative to reference lines (CII reduction factors guidelines, G3);

• Approval of the task to develop a binding legal framework for the management of biofouling organisms

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