IMO approves net-zero regulations

During the 83rd session of the Marine Environment Protection Committee (MEPC 83), held from 7-11th April 2025, the International Maritime Organization (IMO) approved a new marine fuel standard for ships and a global pricing mechanism for GHG emissions, aiming at achieving net-zero emissions by 2050.

The measures will be mandatory for large vessels (greater than 5,000 gross tonnage), which emit 85% of total CO2 emissions from international shipping. These regulations are expected to be formally adopted in October 2025, before coming into force in 2027.

Ships emitting above their annual greenhouse gas fuel intensity (GFI) thresholds will be required to acquire remedial units to balance its deficit emissions, while those using zero or near-zero GHG technologies will be eligible for financial rewards. Additionally, the IMO Net-Zero Fund will be established to collect pricing contributions from emissions.