Net Zero Set for Ratification: Maritime World Waits as IMO Prepares for Net-Zero Decision

October 09, 2025

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(Project Cargo Journal) The global shipping industry is on tenterhooks as the International Maritime Organization (IMO) prepares to finalize its landmark Net-Zero Framework (NZF) at an extraordinary meeting.

Designed guide shipping toward net-zero emissions by 2050, the IMO’s could reshape fuel choices, costs, and operations across the maritime sector, with project cargo logistics squarely in the spotlight.

The NZF introduces two central mechanisms: binding emission standards covering the full lifecycle of marine fuels, and a global carbon levy for vessels exceeding decarbonization targets. The levy, set at a minimum of $100 per ton of CO₂, will fund the transition to cleaner fuels, reward low-emission ships, and assist developing nations in decarbonizing their fleets.

The framework, approved in principle earlier this year, is expected to enter into force in 2027, with implementation beginning 1 January 2028.

Industry stakeholders watching

The IMO’s Marine Environment Protection Committee will be debating the issue between 14 and 17 October, and industry stakeholders are watching closely. The Royal Association of Netherlands Shipowners (KNVR) has endorsed the NZF, citing its potential to make clean fuels economically viable and accelerate the sector’s fuel transition.

Over 180 companies in the global shipping industry, coordinated through the Getting to Zero Coalition, have called on IMO member states to adopt the framework, warning that delay or rejection could disrupt the path to sustainable shipping.

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Adoption requires a two-thirds majority of the 107 countries that have ratified IMO’s MARPOL Annex VI convention. Procedural safeguards allow countries representing at least 50 per cent of global merchant tonnage – or 36 member states – to veto the framework within ten months, ensuring broad international consensus before it comes into effect.

“The KVNR primarily receives signals from parties intending to vote in favor. It is unknown how successful the opposition will be. The U.S. government has publicly opposed the package and is also pressuring countries to vote against it. Such iplomatic tensions raise uncertainty about a consensus and likely lead to a battle for majorities in London,” adds Lurkin. READ MORE

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Excerpt from American Bureau of Shipping: “Let me be crystal clear: the IMO Net Zero Framework is vital. The IMO has a critical role in delivering a unified global regulatory framework, something the industry needs if we are to avoid the fragmentation and inefficiencies arising from a patchwork of regional regulation.”

That was the message for the industry from ABS Chairman and CEO Christopher J. Wiernicki in a keynote address at the Capital Link Operational Excellence in Shipping Forum in Athens.

“Success is a team sport and we need to approach getting to Net Zero by 2050 as if we were building a ship: structured, systematic, explicit, safe and achievable,” he added.

Wiernicki described how leadership was going to be an important factor for the industry and laid out the formula for successful maritime leadership.

“Going forward we are going to need leadership, clear and strong. How do we ensure that progress is not only possible, but sustainable? There is a formula, one that captures the essential ingredients of maritime leadership in this new era: Technology × Innovation × Change × Well-Trained People over Risk,” said Wiernicki.

“This formula captures the totality of the leadership calculus. Technology drives change, but innovation unlocks its potential. Leading change, not just adapting to it, is how organizations thrive. People are the multiplier. Investing in their skills turns ambition into action. Risk is inevitable, but with the right approach, it becomes manageable and not a barrier.” READ MORE

Excerpt from Clean Shipping: Nearly 200 shipping companies said Monday (October 13, 2025) they want the world’s largest maritime nations to adopt regulations that include the first-ever global fee on greenhouse gases to reduce their sector’s emissions.

The Getting to Zero Coalition, an alliance of companies, governments and intergovernmental organizations, is asking member states of the International Maritime Organization to support adopting regulations to transition to green shipping, including the fee, when they meet in London next month. The statement was shared exclusively with The Associated Press in advance.

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In April, IMO member states agreed on the contents of a regulatory framework to impose a minimum fee for every ton of greenhouse gases emitted by ships above certain thresholds and set a marine fuel standard to phase in cleaner fuels. The IMO aims for consensus in decision-making but, in this case, had to vote. The United States was notably absent.

Now nations have to decide if the regulations will enter into force in 2027. If agreed upon, the regulations will become mandatory for large oceangoing ships over 5,000 gross tonnage, which emit 85% of the total carbon emissions from international shipping, according to the IMO.

If nations don’t agree, shipping’s decarbonization will be further delayed and “the chance of the sector playing a proper and fair part in the fight to keep global heating below dangerous levels will almost certainly be lost,” said Delaine McCullough, president of the Clean Shipping Coalition and Ocean Conservancy shipping program director.

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While U.S. opposition and pressure cannot be taken for granted, it still appears as though a majority of countries currently support the regulations, said Faig Abbasov from Transport and Environment, a Brussels-based environmental nongovernmental organization. Abbasov said the deal reached in April was not ambitious enough, but this is an opportunity to launch the sector’s decarbonization and it can be strengthened. READ MORE

Excerpt from The Energy Mix: Maersk, the Chamber of Shipping of America, and the World Shipping Council have spoken in favour of the framework, while Shell Marine has warned there is “no Plan B” if it fails, writes Lloyd’s List.

However, 15 major ship companies said in a recent statement that they do not believe the NZF will effectively decarbonize the maritime industry as planned, nor ensure a level-playing field as intended. “This is of grave concern,” they wrote. The framework’s timeline is too tight, they argue, adding that the NZF fails to recognize certain transition fuels and incentivize investments in emerging technologies. The proposed tax framework could cost the industry more than $300 billion by 2035 if targets are missed by “as little as 10%,” they write, imposing “excessive” financial burdens on the market or creating “inflationary pressure” for end consumers.

Transport & Environment (T&E) maritime transport expert Faig Abbasov told the Independent that while the majority of countries favour the new regulations, one notable obstacle is the Donald Trump administration in the United States, which dubbed the rules as “effectively a global carbon tax on Americans levied by an unaccountable United Nations organization.”

T&E—along with other environmental organizations and some climate-vulnerable island nations—say the regulations are not strict enough to address climate change, but support the current framework as a starting point to improve on later.

The International Chamber of Shipping, representing shipowner associations worldwide, also backs the framework, and is planning to argue for improvements to clarify penalties and incentives during the 16-month implementation phase. The 15 opposing companies maintain that the “fundamental issues” outlined in their statement “cannot be resolved by emerging guidelines post-adoption.” READ MORE

Excerpt from Carneigie Endowment Emissary: The push for tougher targets was not just about climate altruism. It was also shaped by commercial realities. Companies wanted to ensure their next generation of vessels would not risk becoming stranded assets as the world moved toward a low-carbon future. Maersk made the point explicit after the IMO’s 2018 strategy, stating, “Given the 20–25-year lifetime of a vessel, it is now time to join forces and start developing the new type of vessels that will be crossing the seas in 2050.” At the same time, major retailers such as IKEA, Amazon, and Unilever were beginning to scrutinize the carbon intensity of their supply chains, giving first movers another reason to get ahead of the curve. READ MORE

Excerpt from ABC News: The regulations, or “Net-zero Framework,” sets a marine fuel standard that decreases, over time, the amount of greenhouse gas emissions allowed from using shipping fuels. The regulations also establish a pricing system that would impose fees for every ton of greenhouse gases emitted by ships above allowable limits, in what is effectively the first global tax on greenhouse gas emissions.

There's a base-level of compliance for the allowable greenhouse gas intensity of fuels. There's a more stringent direct compliance target that requires further reduction in the greenhouse gas intensity.

If ships sail on fuels with lower emissions than what's required under the direct compliance target, they earn “surplus units," effectively credits.

Ships with the highest emissions would have to buy those credits from other ships under the pricing system, or from the IMO at $380 per ton of carbon dioxide equivalent to reach the base level of compliance. In addition, there's a penalty of $100 per ton of carbon dioxide equivalent to reach direct compliance.

Ships that meet the base target but not the direct compliance one must pay the $100 per ton penalty, too.

Ships whose greenhouse gas intensity is below a certain threshold will receive rewards for their performance.

The fees could generate $11 billion to $13 billion in revenue annually. That would go into an IMO fund to invest in fuels and technologies needed to transition to green shipping, reward low-emission ships and support developing countries so they aren’t left behind with dirty fuels and old ships.

The IMO, which regulates international shipping, set a target for the sector to reach net-zero greenhouse gas emissions by about 2050, and has committed to ensuring that fuels with zero or near-zero emissions are used more widely.

Ships could lower their emissions by using alternative fuels, running on electricity or using onboard carbon capture technologies. Wind propulsion and other energy efficiency advancements can also help reduce fuel consumption and emissions as part of an energy transition.

Large ships last about 25 years, so the industry would need to make changes and investments now to reach net-zero around 2050. READ MORE

Excerpt from Politico Pro: Several Trump officials have called the proposal a “European-led neocolonial export of global climate regulations” and have sought to strong-arm nations into rejecting it by threatening tariffs and other trade barriers.

In an op-ed in The Wall Street Journal on Tuesday, Secretary of State Marco Rubio says the plan is “an attempt by "climate-obsessed politicians to entrench their agenda before voters in democracies can kill it."

But with the measure still headed for passage, the U.S. is making a last-minute push to change the rules of adoption, according to nonprofit observers. Under the U.S. proposal, which would still require a vote, even if the measure passes at this week's meeting, it wouldn't be finalized unless enough countries reiterated their support in the coming months. READ MORE

Excerpt from RFD TV: Clean Marine Fuels Could Supercharge U.S. Biofuels Demand

Global shipping is eyeing lower-carbon fuels, and the International Maritime Organization’s proposed “Net-Zero Framework” could open a vast new outlet for U.S. ethanol, biodiesel, and renewable diesel.

Geoff Cooper with the Renewable Fuels Association (RFA) notes that oceangoing vessels burn roughly 70–80 billion gallons a year. He says that capturing just 5% of American biofuels would mean 4–5 billion gallons of fresh demand, potentially leading to more than 1.5 billion bushels of additional corn use — an economic jolt for rural plants and farms.

The Department of Energy suggests that corn ethanol can cut marine GHGs by approximately 61 percent, soy biodiesel by 66 percent, and soy renewable diesel by 60 percent versus bunker fuel, allowing ships to earn compliance credits if the rule is implemented as proposed in 2027.

Farm-Level Takeaway: Support policies that keep U.S. biofuels at the table—marine demand could materially lift corn grind, crush margins, and rural jobs. READ MORE; includes VIDEO

Excerpt from TradeWinds: International Maritime Organization secretary general Arsenio Dominguez was forced to step into the debate about carbon rules after the US accused the meeting’s chairman and secretariat of bias.

As the second day of the four-day crunch climate meeting got underway, Saudi Arabia and the US attempted to further stall the debate by suddenly proposing that the rules be accepted by explicit acceptance rather than tacit.

IMO rules and conventions are usually agreed through tacit acceptance, and even the IMO on its website notes that explicit approval rarely works. READ MORE