IMO’s net zero framework: A turning point for global shipping

Summary

Every year, 100,000 commercial vessels cross the world’s oceans, powered by 300 million tonnes of fuel. Together, these vessels move over 11 billion tonnes of goods annually. This includes everything from fruit and cocoa to pharmaceuticals and electric vehicles. This immense scale makes shipping indispensable to the global economy, but also a critical frontier in the fight against climate change: large ocean-going ships exceeding 5,000 gross tonnes are responsible for about 85 per cent of industry GHG emissions.

Global collaboration is essential to strengthen the industry’s future and accelerate the transi-tion to low-GHG emission fuels. To incentivise the use of lower-GHG emission fuels, global regulations are needed. That’s where the International Maritime Organization (IMO) comes in. Recently, IMO Member States reached a landmark agreement marking a major step toward decarbonising shipping. If adopted in October 2025, the framework will enter into force in 2027, with compliance starting in 2028. Its key elements include pricing emissions and re-warding ships that use lower-emission fuels, which is a fundamental shift for the industry.

This article explores:

• Why net zero? Why now?
• Charting a future with zero- and near-zero GHG emission fuels
• A breakthrough at the IMO MEPC meeting
• What’s in the framework?

Why net zero? Why now?

Achieving net-zero greenhouse gas emissions by the IMO’s stated target of 2050 requires more than ambition. It demands coordinated, decisive action. Today, alternative fuels remain limited and expensive, making global regulation essential to ensure a level playing field and timely progress. No single stakeholder can drive this transformation alone. True decarbonisation of the shipping industry will only be possible through collaboration between customers, fuel producers, shipping companies, and policymakers.

Regulatory support comes from the International Maritime Organization (IMO), the United Nations specialised agency with responsibility for the safety and security of shipping and the prevention of marine and atmospheric pollution by ships. The IMO is actively working towards the 2030 Agenda for Sustainable Development and the associated sustainable development goals (SDGs), with a focus on building the sustainability of the transport sector to support world trade and facilitate the global economy.

But what exactly is net zero? And why is it so important? The United Nations explains more in its webpage dedicated to climate change action.

• What net zero means: Reducing greenhouse gas (GHG) emissions to a small amount that can be naturally absorbed or removed, so none remain in the atmosphere.
• Why 1.5°C matters: To avoid the most severe consequences of climate change and ensure a habitable planet, we must keep global temperature rise below 1.5°C compared to pre-industrial levels.
• The urgency based on current warming: The Earth has already warmed by approximately 1.2°C since the late 19th century, and GHG emissions are still increasing. To stay within the 1.5°C threshold — a goal set by the Paris Agreement — global emissions must be cut by 45% by 2030 and reach net zero by 2050.

Charting a future with zero- and near-zero GHG emission fuels

Major players in the shipping industry have a key role to play in charting a future for zero- and near-zero emission (ZNZ) fuels that produce little or no greenhouse gas emissions when used. This includes A.P. Moller – Maersk, which operates in almost 130 countries. Like many global companies, Maersk has a voice to be heard in the development of local and international policies and regulation.

Maersk has urged the IMO to adopt ambitious, proportional, and enforceable measures in line with the Paris Agreement, to provide the direction and predictability the shipping industry has long sought to drive decarbonisation. To support an effective transition, Maersk has advocated for a fuel-agnostic policy framework designed to incentivise the development and deployment of scalable, zero- and near-zero GHG emission fuels.

Maersk’s advocacy and leadership emphasise the need for regulatory support and industry-wide collaboration. Chief Executive Officer Vincent Clerc said, “Decarbonising shipping is both essential and ambitious. Bridging the cost gap between fossil fuels and low-GHG emission alternatives is critical — and it demands firm regulatory support. Achieving this transition also requires we work together in long-term partnerships across the entire supply chain, from shipping lines and fuel producers to infrastructure providers and customers.”

Decarbonisation of the shipping industry is a strategic imperative embedded across Maersk, with a goal to achieve net zero GHG emissions by 2040, and targets aligned with the Science-Based Targets initiative (SBTi) 1.5°C pathway. In 2024, Maersk became the first company in the shipping industry to have its climate targets validated by the SBTi, aligned with the SBTi Corporate Net Zero Standard.

Rabab Raafat Boulos, the Chief Operating Officer at Maersk, said the SBTi validation in 2024 is part of Maersk’s climate action. “At Maersk, we feel a strong responsibility to take action in the climate crisis. The Science-Based Targets initiative represents the highest standard for corporate climate targets, and we are very proud to have obtained validation.”

A breakthrough at the IMO MEPC meeting

At the Marine Environment Protection Committee (MEPC) 83rd session in April, the IMO Member States agreed on the legal text for the first global greenhouse gas pricing framework. If formally adopted in October 2025, it will introduce mandatory GHG emissions limits and a global pricing mechanism, aiming for net-zero emissions around 2050 and entering into force in 2027. (See this United Nations video for a 60-second primer of the agreement.)

As Laura Quinones writes for UN News, the breakthrough did not happen overnight. “The IMO’s work to tackle GHG emissions spans more than a decade. In 2011, it rolled out the first mandatory energy efficiency measures for ships. Then, in 2018, member countries agreed on the Initial IMO Strategy on Reduction of GHG Emissions from Ships, marking the first international targets to cut the sector’s climate impact. Building on that progress, IMO ramped up ambition in 2023 and set clear goals: reduce GHG emissions by at least 20 per cent by 2030 and 70 per cent by 2040, and phase in zero or near-zero GHG emission fuels. The 2025 Net-Zero Framework transforms these plans into binding regulation.”

If the agreement is formally adopted, shipping could become the first global sector with a greenhouse gas pricing mechanism.

What’s in the framework?

The framework introduces a two-tier compliance system with base and direct targets tied to the annual GHG intensity of a ship’s fuel. These targets will tighten progressively, aiming for net-zero GHG emissions by 2050. Ships failing to meet the required thresholds will be obliged to pay for their excess GHG emissions.

The framework introduces a dual-pricing mechanism:

• A penalty price of USD 380/tCO₂eq for ships below the base target.
• A GHG price of USD 100/tCO₂eq for ships between the base and direct compliance targets.

In contrast, ships achieving direct compliance, especially those operating on ZNZ fuels, could be eligible for financial rewards. While the reward mechanism is still being defined, these thresholds open opportunities for a range of fuels.

Elements of the regulation are yet to be defined in the guidelines, and the success of the framework still depends on the following:

• First, sustainability and lifecycle assessments (LCA) must be science-based and harmonised, properly accounting in a scientific approach for indirect land-use change and upstream emissions to ensure that emissions are accounted for accurately.
• Second, reward levels for zero- and near-zero emission (ZNZ) fuels must be strong enough to drive real uptake, as insufficient incentives could undermine investment in fuels with the greatest decarbonisation potential.
• Finally, enforcement must be rigorous and consistent, supported by a robust certification system, uniform application across flag States, and an enhanced Data Collection System (DCS) for more detailed, accessible data.

The agreement provides crucial signals to ship owners and fuel providers about the future direction.

“It is a remarkable achievement and an important proof point that the world can address the climate crisis with real action. The agreement is not perfect, as compromises rarely are, but it is a huge step forward and is a clear signal to the shipping and low-emission fuels industries that the energy transition of this sector will happen at pace,” says Morten Bo Christiansen, Head of Energy Transition at Maersk.

The next IMO meeting in October will be pivotal for the formal adoption of the framework. If successfully adopted, the agreement will enter into force in 2027 and apply in practice from 2028. Continued collaboration with the IMO Member States is essential to maintain the net-zero trajectory for shipping.

Be ready to decarbonise shipping to go all the way! Discover more with Maersk Logistics Insights, learn about Maersk’s efforts to decarbonise ocean shipping and where the issue ranks on the Logistics Trend Map. You can also learn about science-based targets and Maersk’s climate transition plan in the 2024 Annual Report.