IMO 2028 – A New Legislative Measure for the Decarbonisation
IMO Unveils Groundbreaking Net-Zero Framework for Shipping
On April 11, 2025, the International Maritime Organization (IMO) took a significant step forward in the fight against climate change by approving a legally binding framework aimed at achieving net-zero greenhouse gas (GHG) emissions from ships by 2050. This groundbreaking initiative, known as the IMO Net-Zero Framework, is the first of its kind to impose mandatory emissions limits and GHG pricing across the global shipping industry. The measures, which include a new fuel standard and a global pricing mechanism for emissions, are set to be formally adopted in October 2025 and will take effect in 2027.
Key Features of the Net-Zero Framework
The Net-Zero Framework is designed to target large ocean-going vessels over 5,000 gross tonnage, which account for 85% of CO2 emissions from international shipping. The framework will be integrated into a new Chapter 5 of MARPOL Annex VI, establishing a comprehensive approach to emissions reduction.
One of the central components of the framework is the global fuel standard, which mandates that ships gradually reduce their annual greenhouse gas fuel intensity (GFI). This measurement considers total emissions from fuel production to its use on board, ensuring a well-to-wake assessment. Ships that exceed GFI thresholds will be required to acquire remedial units to offset their excess emissions. Conversely, vessels utilizing zero or near-zero GHG fuels will be eligible for financial rewards.
Additionally, the framework introduces a tiered compliance system with two targets: a Base Target and a Direct Compliance Target. Ships that meet the stricter Direct Compliance Target can earn surplus units, while those that exceed the thresholds will face compliance deficits. Operators will also be required to report their annual GFI, ensuring transparency and accountability in emissions tracking.
To support the transition to cleaner fuels, the IMO will establish a Net-Zero Fund, financed by contributions from ships that exceed their GFI limits. This fund will be used to reward low-emission vessels, support research and innovation, and assist developing countries in adapting to the new regulations.
The framework also includes a Sustainable Fuel Certification Scheme (SFCS) and a Fuel Lifecycle Label (FLL) to ensure that all fuels used in shipping are accurately documented for their GHG intensity and sustainability attributes. This certification process aims to prevent misrepresentation of environmental impacts and promote the use of cleaner fuels.
As the maritime industry prepares for these significant changes, the IMO’s Net-Zero Framework represents a pivotal moment in the global effort to combat climate change and transition towards sustainable energy solutions in shipping.
