IMO Approves Net-Zero Framework for Shipping Emissions by 2027

The International Maritime Organization (IMO) has established a legally binding framework to reduce greenhouse gas (GHG) emissions from ships, targeting net-zero emissions by or around 2050. Approved during the MEPC 83 session in April 2025, the IMO Net-Zero Framework combines mandatory emissions limits and GHG pricing, a world-first for an entire industry sector. Set for formal adoption in October 2025 and enforcement in 2027, these measures apply to large ocean-going ships over 5,000 gross tonnage, responsible for 85% of shipping's CO₂ emissions. The framework, included in MARPOL Annex VI, introduces a new fuel standard and a global pricing mechanism. Ships exceeding emission thresholds can compensate via surplus units or payments into the IMO Zet-Zero Fund, which supports zero-emission fuel projects and developing countries. This aims to achieve the 2023 IMO Strategy climate targets, promoting sustainable maritime practices.