IMO approves global net-zero rules for shipping industry

The International Maritime Organization (IMO), a specialised agency of the United Nations responsible for regulating shipping, has approved landmark draft regulations that will establish legally binding requirements for global shipping to achieve net-zero greenhouse gas (GHG) emissions by or around 2050.

Adopted during the 83rd session of the Marine Environment Protection Committee (MEPC 83) from 7–11 April 2025, the new framework introduces mandatory marine fuel standards and an international emissions pricing mechanism. It is the first global regulatory regime to combine emissions limits and carbon pricing across an entire industry sector.

The draft amendments to MARPOL Annex VI will apply to ocean-going vessels over 5,000 gross tonnage—representing around 85% of total CO₂ emissions from international shipping. Formal adoption is expected in October 2025, with implementation scheduled for 2027.

IMO Secretary-General Arsenio Dominguez described the approval as “a significant step in our collective efforts to combat climate change,” adding that continued dialogue will be vital for successful adoption.

Key features of the IMO net-zero framework

The new measures will be incorporated in Chapter 5 of MARPOL Annex VI and include:

• A Global Fuel Standard: Requiring a phased reduction in ships’ annual greenhouse gas fuel intensity (GFI), calculated using a well-to-wake methodology.
  
• An Economic Measure: Ships exceeding GFI thresholds must purchase remedial units, while those using zero or near-zero emissions technologies will receive financial incentives.

Ships can comply by transferring or banking surplus units or by purchasing remedial units through the newly established IMO Net-Zero Fund.

IMO Net-Zero Fund

The fund will collect contributions from emissions and direct revenues to:

• Reward low-emission ships
  
• Support innovation and technology transfer
  
• Fund infrastructure and training in developing nations, and
  
• Mitigate impacts on vulnerable states such as Small Island Developing States.
  

Next steps

• October 2025: Formal adoption of the amendments during an extraordinary MEPC session.
• Spring 2026: Approval of detailed implementation guidelines.
• 2027: Expected entry into force.