The International Maritime Organization (IMO) has created the Net-zero Framework to combine mandatory emissions limits and GHG pricing across the industry.
Approved by the Marine Environment Protection Committee during its 83rd session (MEPC 83) from 7–11 April 2025, the measures include a new fuel standard for ships and a global pricing mechanism for emissions.
The 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.
Key elements of the framework will be included in a new Chapter 5 of Annex VI (Prevention of air pollution from ships) to the International Convention for the Prevention of Pollution from Ships (MARPOL).
MARPOL Annex VI currently has 108 Parties, covering 97% of the world’s merchant shipping fleet by tonnage, and already includes mandatory energy efficiency requirements for ships.
The goal is to achieve the climate targets set out in the 2023 IMO Strategy on the Reduction of GHG Emissions from Ships, accelerate the introduction of zero and near zero GHG fuels, technologies and energy sources, and support a just and equitable transition.
Under the draft regulations, ships will be required to comply with a global fuel standard, and over time their annual greenhouse gas fuel intensity (GFI). Ships emitting above GFI thresholds will have to acquire remedial units to balance its deficit emissions, while those using zero or near-zero GHG technologies will be eligible for financial rewards.
There will be two levels of compliance with GHG Fuel Intensity targets: a Base Target and a Direct Compliance Target at which ships would be eligible to earn “surplus units”.
The IMO Zet-Zero Fund will be established to collect pricing contributions from emissions. These revenues will then be disbursed to reward low-emission ships, support innovation and research, and fund training and capacity building, as well as mitigating negative impacts on vulnerable states.
Closing the meeting, IMO Secretary-General Mr. Arsenio Dominguez said:
“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.”
Image of meeting courtesy of the IMO
