IMO Aims to Reach Net Zero Emissions by 2050

The International Maritime Organization (IMO), the UN agency responsible for regulating global shipping, has unveiled a new international plan to reduce pollution from the maritime sector. The initiative aims to guide the shipping industry toward achieving net-zero greenhouse gas (GHG) emissions by 2050.

The new IMO Net-Zero Framework will apply to large ocean-going vessels exceeding 5,000 gross tonnage, which collectively account for 85% of the sector’s carbon dioxide emissions. Arsenio Dominguez, Secretary General, IMO, praised the agreement, highlighting the spirit of cooperation that made it possible. 

“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,” he said during the organization’s annual meeting held in London.

MARPOL Annex VI is part of the International Convention for the Prevention of Pollution from Ships, specifically focused on controlling air pollution. The new framework introduces a set of rules designed to reduce emissions from shipping. 

Shipping is responsible for transporting approximately 90% of global trade and contributes nearly 3% of the world’s carbon dioxide emissions, equivalent to the emissions of Germany, the world’s fourth-largest economy. In 2023 alone, international shipping emitted 706 million mt of CO₂, reflecting a 1.1% increase over the previous year, according to UN calculations. 

The plan establishes a global fuel standard that aims to progressively lower the annual greenhouse gas intensity of marine fuels. Ship operators will be required to either improve their vessels’ fuel efficiency or transition to cleaner alternatives such as methanol, ammonia, or green hydrogen. The objective is to reduce fuel intensity by 43% by 2035, using 2008 as the baseline.

A GHG pricing mechanism will also be introduced. Ships that emit above designated limits will be required to pay for their excess pollution. The pricing structure will start at US$100 per excess ton of emissions and could rise to as much as US$380/t. Under this system, vessels exceeding their emission thresholds must purchase remedial units to offset their excess output. Conversely, ships operating with zero or near-zero emissions will be rewarded with financial incentives and credits. These credits can be stored for future use or sold to other operators exceeding their emission limits. 

The revenue generated from these fees will be allocated to a new fund managed by the IMO. The fund will support the design of low-emission ships, finance R&D, help developing countries adopt green technologies, train workers for the green transition, and offer financial support to small island nations vulnerable to rising shipping costs. The organization estimates the fund could raise between US$10 billion and US$13 billion per year.

The agreement received backing from 63 countries, including the majority of the European Union, the United Kingdom, Canada, China, and India. However, 16 oil-exporting countries, among them Saudi Arabia, Russia, and Venezuela, opposed the agreement. Another 25 countries abstained, including several Pacific Island States, which argued the measures were insufficient. “This would do too little, too late to cut shipping emissions and protect their islands,” the Pacific delegation said in a statement following the vote.

The United States withdrew from the talks just before the final vote. A spokesperson for the US State Department confirmed that the country would not participate in the negotiations, citing the administration’s policy of prioritizing their interests in all international agreements. According to Reuters, a diplomatic message sent last Tuesday warned foreign ambassadors that the United States may take reciprocal action if the measure proceeds, including efforts to offset any charges imposed on US ships and compensate for broader economic impacts.

Draft regulations are scheduled for formal adoption in October 2025. If ratified during the IMO session as expected, the new rules will take effect in 2027. This timeline gives the industry time to prepare for the new requirements and to invest in alternative fuels and technologies by 2028.