The International Maritime Organization (IMO) has concluded the 83nd session of the Marine Environment Protection Committee (MEPC 83). Member states have approved the first-ever global pricing for carbon emissions in shipping.
The decision includes a greenhouse gas pricing mechanism and a fund for revenue distribution. A global fuel standard has also been approved, accounting for emissions across the entire life cycle—from production to combustion.
The text of the document was agreed upon by vote. It is planned for adoption in October, with entry into force scheduled for 2028. These measures are part of the IMO Net Zero framework, which aims to decarbonize the industry by 2050.
“By approving a global fuel standard and a greenhouse gas pricing mechanism, the International Maritime Organization has taken a significant step toward reducing the climate impact of shipping,” said Natasha Stamatiou, head of the IMO delegation from the Environmental Defense Fund.
The fuel standard requires a gradual reduction in greenhouse gas emission intensity. A flexible compliance mechanism allows for the trading of units to meet requirements. Revenue from trading will be used to incentivize zero and near-zero emission fuels, as well as to support a just transition in vulnerable regions—particularly in Small Island Developing States and Least Developed Countries.
“This framework allows shipping to move away from fossil fuels by accounting for full life-cycle emissions, with a pricing mechanism and provisions to support vulnerable countries,” noted Angie Farrag-Thibault, Vice President for Global Transportation at EDF.
In addition, the IMO will for the first time provide public access to anonymized vessel data from its data collection system, including fuel consumption and CII ratings. How will this step affect actual emission reductions in the coming years?
The Environmental Defense Fund emphasizes that while the basic elements are in place, they must be strengthened over time. The organization intends to continue working with member states and the industry to ensure these measures become effective and equitable.
