According to the official website of the International Maritime Organization (IMO) on April 11, 2025, the IMO has passed a global net zero emissions regulation for the shipping industry. The draft regulation will establish mandatory ship fuel standards and greenhouse gas emission pricing mechanisms to address climate change. The IMO net zero framework will for the first time combine mandatory emission limits and greenhouse gas pricing mechanisms across the entire industry.
The International Maritime Organization (IMO) has taken an important step towards establishing a legally binding global framework for reducing greenhouse gas (GHG) emissions from ships, with the goal of achieving net zero emissions by 2050 or earlier.
The IMO Net Zero Framework is the world's first mechanism that combines mandatory emission limits and greenhouse gas pricing across the entire industry sector.
The framework was approved at the 83rd Marine Environment Protection Committee Meeting (MEPC 83) held from April 7th to 11th, 2025, with measures including new fuel standards for ships and a global emissions pricing mechanism.
These measures are planned to be officially passed in October 2025, and after taking effect in 2027, they will be mandatory for large ocean going vessels with a total tonnage exceeding 5000 tons (accounting for 85% of the total carbon dioxide emissions from international shipping).
At the closing of the meeting, Mr. Asenio Dominguez, Secretary General of IMO, praised the spirit of cooperation and commitment demonstrated by member states this week. He said:
The approval of the draft amendment to Annex VI of the International Convention for the Prevention of Pollution from Ships (MARPOL) requires the implementation of the IMO net zero framework, which is another important milestone for us to jointly address climate change and promote the modernization of the shipping industry, and also proves that IMO is fulfilling its commitments. "
Core elements of IMO net zero framework
The IMO net zero framework will be included in 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).
The current MARPOL Annex VI has 108 contracting parties, covering 97% of the world's merchant ship tonnage, which already includes mandatory requirements for ship energy efficiency.
This framework aims to achieve the climate goals set in the 2023 IMO Ship Greenhouse Gas Reduction Strategy, accelerate the application of zero/near zero carbon fuels, technologies, and energy, and support a fair and equitable transition.
According to the draft regulations, ships must meet the following requirements:
1. Global fuel standards: Ships must annually reduce their greenhouse gas fuel intensity (GFI) - the greenhouse gas emissions per unit of energy consumption, calculated using the Well to Wake method.
2. Global economic measures: Ships with emissions exceeding the GFI threshold are required to purchase remedial units to offset the emission deficit, while ships using zero/near zero carbon technologies will be eligible for financial incentives.
Compliance mechanism
There are two levels of compliance standards for greenhouse gas fuel intensity targets: basic targets and direct compliance targets (achieving the latter can earn "surplus units").
Ships with excessive emissions can balance their deficit through the following methods:
• Transfer surplus units from other ships;
• Use surplus units already reserved;
Obtain remedial units by paying contributions to the IMO Net Zero Fund.
IMO Net Zero Fund
The IMO Net Zero Fund will be established to collect emission pricing funds, with the following purposes:
Reward low emission ships;
• Support innovative research and development, infrastructure construction, and fair transformation plans in developing countries;
• Provide funding for training, technology transfer, and capacity building to implement the IMO greenhouse gas strategy;
Reduce the negative impact on vulnerable countries such as small island developing states and least developed countries.