Countries from around the world agreed on a new international plan to cut pollution from ships. The deal was announced by the International Maritime Organization (IMO)—the United Nations agency that regulates global shipping.
The plan is called the IMO Net-Zero Framework, and it aims to help the shipping industry reduce its greenhouse gas (GHG) emissions to net zero by around 2050.
This agreement is seen by many as an important step forward. But not everyone agrees that it goes far enough. Some environmental groups say the plan has big loopholes. Others worry that it won’t reduce emissions fast enough to help limit global warming.
Even some governments, like the United States, walked out of the negotiations, showing just how difficult it is to get global support for climate action.
Why Shipping Matters in Climate Change
Shipping is a big part of our everyday lives. About 80% of global trade happens through ships. Everything from food and clothes to electronics and cars is transported across oceans.
But while ships are efficient at moving goods, they also burn large amounts of heavy fuel oil, which creates greenhouse gases like carbon dioxide (CO₂). In 2023, international shipping emitted 706 million metric tons of CO₂, marking a 1.1% increase from the previous year.
Currently, shipping is responsible for about 3% of all global GHG emissions. That might not sound like much, but it’s about the same as the total emissions of Germany, the world’s 4th-largest economy. And if the shipping industry continues on its current path, its emissions could double by 2050, especially as global trade increases.
Per the United Nations Conference on Trade and Development (UNCTAD) data, below is the industry’s emissions in 2023:
IMO Secretary-General Mr. Arsenio Dominguez emphasized the importance of this development:
“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.”
What’s in the New IMO Net-Zero Framework?
The new IMO agreement includes a few major rules to help reduce shipping emissions over time. Here are the major changes highlighted from the new framework:
1. Fuel Standards
Starting in 2027, large ships will need to meet a new global fuel standard. This rule limits the amount of greenhouse gas emissions allowed per unit of fuel used. Ships will have to improve their fuel efficiency or switch to cleaner fuels like methanol, ammonia, or green hydrogen.
The IMO says the goal is to reduce fuel intensity by 43% by 2035, compared to levels in 2008. This means ships will need to become much more efficient or use fuels that release fewer emissions.
2. Emissions Pricing
Ships that emit more than the allowed levels will have to pay a fee. This is sometimes called a carbon price or emissions levy. These fees are for creating a financial incentive to cut emissions.
The exact price is still being debated, but reports suggest a starting point of $100 per ton of CO₂ above the set limits.
3. Credit Trading System
If a ship performs better than required—by using cleaner fuels or being more efficient—it can earn credits. These credits can be saved for future use or sold to other ships that exceed their limits. This system is similar to carbon credit trading programs used in other industries.
4. IMO Net-Zero Fund
Money collected from emissions fees will go into a new fund managed by the IMO. This Net-Zero Fund will help achieve the following:
- Support low-emission ship designs
- Fund research and development
- Assist developing countries with new technology
- Train workers for the green shipping transition
- Protect small island nations from rising costs
Who Supports the Deal—And Who Doesn’t?
The agreement was supported by 63 countries, including most of the European Union, the United Kingdom, Canada, China, and India. But 16 countries voted against it, including Saudi Arabia, Russia, and Venezuela. Another 25 countries abstained, including some small island nations that said the deal was not strong enough.
The United States left the talks altogether just before the vote. The Trump administration said the plan would hurt the American economy. It also warned that the U.S. might respond with “reciprocal measures” if its ships are forced to pay emissions fees.
This disagreement shows how hard it is to reach a global deal. The IMO usually works by consensus, but this time, a vote was needed—a sign of deep divisions.
Why Environmental Groups Are Concerned
Many climate and environmental groups say the deal is better than nothing—but still not enough. Here are some of the biggest concerns:
Biofuels Loophole
The agreement allows ships to use biofuels like vegetable oil, which are considered “drop-in fuels.” These fuels can be used without changing ship engines. But critics say that producing biofuels often involves cutting down forests or replacing food crops, which can cause other environmental problems.
The International Council on Clean Transportation (ICCT) says the IMO framework does not include rules to count these “indirect emissions”, unlike the EU maritime rules or aviation standards.
Missing the Net Zero Target
Some groups, like Transport & Environment (T&E), say the IMO’s current plan won’t be enough to reach net-zero emissions by 2050. Their research suggests the framework could fall short of the 1.5°C Paris Agreement goal, especially if many ships continue using fossil fuels or unsustainable biofuels.
They argue that stronger fuel rules, higher carbon prices, and tougher deadlines are critical to make real progress.
So, What Comes Next?
The IMO will meet again in October 2025 to officially adopt the agreement. If approved, the rules will come into effect in 2027 and apply to ships with a 5,000 gross tonnage. These large vessels account for about 85% of international shipping’s CO₂ emissions, according to the IMO.
But turning the framework into reality will take a lot of work. Shipowners will need to act on the following per IMO:
- Invest in new engines and clean fuel systems,
- Work with ports to set up fuel supply infrastructure,
- Train crews to operate new technologies, and
- Track and report their emissions accurately.
At the same time, governments must set fair and transparent rules, avoid giving unfair advantages to certain countries, and support developing nations in making the shift.
The Bigger Picture: Shipping in the Green Transition
Shipping is just one piece of the climate puzzle. But it’s an important one. If the sector can successfully shift to clean energy, it could:
- Cut millions of tons of CO₂ each year
- Boost green fuel markets, making clean energy cheaper for other sectors
- Create jobs in shipbuilding, port operations, and fuel production
According to the UNCTAD, investments of over $1 trillion may be needed to fully decarbonize the shipping industry by 2050.
The IMO agreement marks the first time a global, legally binding carbon pricing system will apply to an entire industry. It’s a big step but not the final one. For now, the seas are changing. The shipping industry is finally sailing in a cleaner direction—but the journey to net zero is just beginning.
