Let's turn the tide on global shipping

The International Maritime Organization is a specialised agency of the United Nations responsible for regulating international shipping. With 176 Member States, it sets global standards for maritime safety, security and environmental performance. Its rules are designed to be universally adopted and implemented across the shipping industry. 

Learn more at: https://www.imo.org/ 

The Net Zero Framework is a set of international regulations designed to reduce greenhouse gas (GHG) emissions from international shipping, in line with the IMO’s 2023 GHG strategy.  

It includes: 

• A global fuel standard to progressively reduce the carbon intensity of marine fuels
• A GHG pricing mechanism that places a cost on emissions to incentivise green fuels. 

Together, these measures aim to steer the industry toward low and zero-emission energy sources. 

The framework requires ships to reduce the greenhouse gas intensity of the fuel they use each year. 

Every ship must report its annual greenhouse gas fuel intensity (GFI). If a ship exceeds the permitted limit, it must make up the shortfall by:  

• Using surplus units from over-compliant ships 
• Using banked surplus units from previous years 
• Purchasing remedial units by contributing to the IMO Net Zero Fund

Ships that emit below the required threshold can bank or trade their surplus units.  

Ships using adopt zero or near-zero emission fuels may qualify for financial rewards. 

The limits tighten over time to drive continuous improvement. 

The vote to formally adopt the Net Zero Framework was postponed following political opposition during negotiations among Member States, with allegations of intimidation tactics. 

The Marine Environment Protection Committee (MEPC) agreed to adjourn discussions until October 2026, when Member States will have another opportunity to adopt the framework. 

In April 2025, the Marine Environment Protection Committee approved the framework in principle.

For it to become legally binding, amendments to the MARPOL Conventions must be formally adopted at a future session. Adoption requires a two-thirds majority vote by Member States.

The MEPC met from 14-17 October 2025 and agreed to adjourn the meeting for a year, meaning the next opportunity for adoption is October 2026.  

The next formal meeting of the MEPC, which will serve as a crucial check-in on the progress of negotiations, is scheduled for late April 2026. 

Under the 2023 GHG Strategy, the IMO aims to achieve net-zero greenhouse gas emissions from international shipping by or around 2050. It aims to do so by promoting zero-emission fuels, green shipping technologies and greater efficiency, and introducing economic measures such as emissions pricing and fuel standards to drive the green transition.  

Interim targets include: 

• By 2030: At least 20% reduction in total GHG emissions (striving for 30%) 
• By 2030: At least 5% of energy used to come from zero or near-zero emission fuels  
• By 2040: At least 70% reduction (striving for 80%) 
• By 2050: Net-zero emissions 

Under the proposed framework: 

• Ships exceeding emissions limits would pay into the Net Zero Fund 
• Ships that outperform the standard could earn surplus compliance units 
• Two pricing tiers would apply for emissions above thresholds, with higher penalties for greater excess emissions 

The pricing structure is designed to make high-emission fuels less competitive and accelerate the shift to green alternatives. 

The IMO Net Zero Fund would collect revenue from emissions pricing contributions.  

That revenue would be used to: 

• Reward ships using low and zero-emission fuels 
• Support innovation, research and green infrastructure 
• Assist developing countries with the transition
• Fund training and capacity building initiatives 

The fund would be overseen by a governing body accountable to the IMO's Marine Environment Protection Committee. 

Zero-emission marine fuels include green hydrogen, green ammonia, renewable methanol and other alternatives produced using renewable energy. 

These fuels produce little or no CO₂ at the point of use and are central to achieving the IMO’s decarbonisation targets. 

International shipping emits more than 1 billion tonnes of CO₂ every year – roughly 3% of global greenhouse gas emissions. Without firm global regulation, emissions are projected to rise as trade grows.