The International Maritime Organization’s net-zero shipping regulations mandate emissions reductions and introduce a global carbon pricing mechanism.
By 2027, large ships around the world will need to meet strict new climate standards. These rules aim to cut greenhouse gas emissions from ocean shipping to nearly zero by 2050.
The new net-zero shipping regulations are part of the International Maritime Organization’s (IMO) Net-Zero Framework, which was approved in April 2025. It includes the first global plan to both limit emissions and put a price on pollution in one industry-wide system. The regulations apply to ocean-going ships over 5,000 gross tons. These vessels produce 85% of the carbon dioxide (CO2) emissions from international shipping.
Shipping plays a big role in the global economy, carrying over 80% of traded goods. But it’s also a major polluter. If the shipping industry were a country, it would be the sixth-largest emitter of greenhouse gases.
The new rules aim to clean up this sector by enforcing net-zero shipping regulations. That means shipping companies will have to reduce emissions as much as possible and offset any remaining emissions using other methods, such as cleaner fuel or financial penalties.
For everyday consumers, these changes could impact shipping costs, the prices of imported goods, and the rate at which greener technologies are adopted in global trade.
The new framework, officially known as the IMO Net-Zero Framework, adds a new Chapter 5 to the existing pollution rules under the MARPOL Convention. MARPOL Annex VI already includes energy efficiency rules for ships. It’s supported by 108 countries representing 97% of the global shipping fleet by weight.
The IMO Net-Zero Framework introduces two main components: a global fuel standard and an economic measure.
The global fuel standard requires ships to reduce their annual greenhouse gas fuel intensity over time. This means lowering the amount of GHG emitted per unit of energy used, calculated using a “well-to-wake” approach that considers emissions from fuel production to its use onboard.
The economic measure requires ships emitting above the set thresholds to acquire remedial units to offset their excess emissions. Conversely, ships using zero or near-zero GHG technologies can earn financial rewards. This system is designed to incentivize the adoption of cleaner technologies and fuels, pushing the industry toward sustainability.
To meet the fuel intensity targets, each ship will face two levels of compliance:
- A Base Target that sets the minimum performance required
- A Direct Compliance Target for earning surplus units, which can be saved, traded, or sold
If a ship goes over its emissions limit, the operator can:
- Use its own surplus units from earlier years
- Buy surplus units from other ships
- Purchase remedial units by paying into a new fund
A key part of the plan is the IMO Net-Zero Fund, which will collect payments from companies that exceed emissions limits.
That money will be used to:
- Reward low-emission ships
- Support cleaner fuel research and infrastructure in poorer countries
- Fund training and technology-sharing programs
- Help vulnerable countries, like island nations, deal with higher costs or climate risks
This part of the plan supports a “just and equitable transition” to cleaner shipping, especially for Small Island Developing States and Least Developed Countries.
The rules are moving forward on a set timeline:
- April 2025: The Marine Environment Protection Committee (MEPC) approves the draft
- October 2025: Final adoption expected during an extraordinary session
- 2027: Rules go into effect, 16 months after adoption
More detailed guidelines for implementation are set for approval in 2026.
The IMO’s April 2025 meeting also addressed several other marine environmental issues:
- A 2025 Action Plan to fight marine plastic pollution
- Updates to ballast water rules, which help prevent the spread of invasive species
- A proposal to name the North-East Atlantic as a protected Emission Control Area
- Agreement to protect sensitive coastal areas in South America
- New rules for sharing emissions data
- Progress on regulating Onboard Carbon Capture and Storage systems
- A plan to develop legally binding rules for biofouling, which occurs when organisms cling to ship hulls and spread to new environments
If adopted as expected, the net-zero shipping regulations will be the first global climate rules for a specific industry. They will pressure shipbuilders, fuel producers, and shipping companies to adopt cleaner technology quickly.
Some countries have called for even faster action. But for now, the IMO is focusing on cooperation among its 175 member states to ensure the rules are fair and achievable.
The cost of shipping goods may increase slightly as companies invest in cleaner technology and offset their emissions. But these changes aim to prevent long-term damage from climate change, such as rising sea levels and stronger storms, both of which threaten coastlines and global food supply chains.
The shipping industry is one of the last major sectors to face this kind of regulation. The new rules show a serious step toward global responsibility and clean energy.
With net-zero shipping regulations in place, ships will no longer be free to pollute without limits—and that’s good news for the environment, and for everyone who depends on global trade.
