Shipping Charts Course To Net Zero Under New IMO Climate Framework

9th June 2025

The International Maritime Organisation (IMO) has taken a landmark step toward decarbonising global shipping, approving the first-ever regulatory framework targeting net-zero greenhouse gas emissions by around 2050. The decision, made during the IMO’s Marine Environment Protection Committee (MEPC 83) session in April 2025, sets the stage for transformative changes across the maritime sector.

At the core of the new framework is a mandatory reduction in the carbon intensity of marine fuels, assessed on a 'well-to-wake' basis, accounting for emissions from fuel production through to combustion. The rules apply to large vessels over 5,000 gross tons, which are responsible for the bulk of international shipping emissions. A central feature of the framework is a global emissions pricing mechanism. Vessels that exceed emissions thresholds will be required to purchase remedial units, while those using low- or zero-emission technologies may receive credits or financial incentives. Though the pricing structure is still being finalised, the IMO has made clear that carbon will come at a cost for the maritime industry.

Formal adoption of the regulations is expected in October 2025, with enforcement scheduled to begin in 2027. To support implementation and ensure a just transition, the IMO has also unveiled plans for a Global Net-Zero Transition Fund. Funded by revenue from emissions pricing, it will provide:

• Incentives for cleaner vessels
• Investment in green infrastructure and innovation
• Training and capacity-building, particularly in developing countries

The fund is specifically designed to help vulnerable regions, such as small island developing states and least developed countries, mitigate economic risks associated with the transition and maintain access to global trade. As momentum builds around climate action, the IMO’s decision marks a decisive shift: international shipping is moving beyond voluntary measures toward binding climate accountability. While final details will be refined in the coming months, the direction is clear, the era of unregulated maritime emissions is nearing its end.

1. Approval of the IMO Net-Zero Framework (Mid-Term GHG Measures)
1. MEPC 83 approved draft amendments to MARPOL Annex VI, introducing a new Chapter 5 that establishes the "IMO Net-Zero Framework."
2. This framework includes:
1. A technical element: a goal-based marine fuel standard designed to gradually lower the greenhouse gas (GHG) intensity of marine fuels.
2. An economic element: a pricing mechanism for maritime GHG emissions.
3. These measures are scheduled for formal adoption at an extraordinary MEPC session in October 2025 and are expected to enter into force on 1 March 2027.
2. Review of Short-Term GHG Reduction Measures
1. MEPC 83 completed Phase 1 of the review of short-term GHG measures, which include the Energy Efficiency Existing Ship Index (EEXI), the Ship Energy Efficiency Management Plan (SEEMP), and the Carbon Intensity Indicator (CII) rating scheme.
2. Key actions taken:
1. Adoption of amendments to the 2021 Guidelines on the operational carbon intensity reduction factors (CII reduction factors) for 2027 to 2030.
2. Approval of draft amendments to Regulation 27 of MARPOL Annex VI to enhance transparency by making the IMO's data collection system (IMO DCS) on ship fuel consumption more accessible.
3. Agreement on a work plan for Phase 2 of the review, to run from Spring 2026 to Spring 2028, focusing on enhancing the SEEMP framework and further developing CII metrics.
3. Onboard Carbon Capture and Storage (OCCS)
1. MEPC 83 approved a work plan for developing a regulatory framework for the use of onboard carbon capture and storage (OCCS) technologies, with expected completion by 2028. 

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