New Marine Fuel Standards for Net Zero: Draft Regulations

Welcome, Net Zero News readers,

In a historic move towards sustainable shipping, the International Maritime Organization (IMO) has unveiled its ambitious Net-zero Framework, aimed at significantly reducing greenhouse gas (GHG) emissions within the maritime industry. This milestone was approved during the Marine Environment Protection Committee’s 83rd session (MEPC 83), held from 7–11 April 2025, marking a pivotal moment in the global fight against climate change.

The framework introduces a comprehensive set of measures, including a new fuel standard for ships and a global pricing mechanism for emissions, designed to curb the maritime sector’s environmental impact. Scheduled for formal adoption in October 2025 and set to come into force by 2027, these regulations will primarily target large ocean-going vessels exceeding 5,000 gross tonnage, which are responsible for a staggering 85% of CO2 emissions from international shipping.

One of the significant components of this framework will be the addition of a new Chapter 5 to Annex VI of the International Convention for the Prevention of Pollution from Ships (MARPOL). This chapter will focus on the prevention of air pollution from ships, enhancing the existing regulations under MARPOL Annex VI, which is already endorsed by 108 Parties and covers 97% of the world’s merchant shipping fleet by tonnage. Current regulations include mandatory energy efficiency requirements, but the new framework aims to elevate these standards to meet the pressing challenges posed by climate change.

The primary objective of the Net-zero Framework is to align with the climate targets outlined in the 2023 IMO Strategy on the Reduction of GHG Emissions from Ships. It seeks to expedite the adoption of zero and near-zero GHG fuels, technologies, and energy sources while ensuring a just and equitable transition for all stakeholders involved in the maritime industry.

Under the proposed regulations, ships will be mandated to adhere to a global fuel standard. Over time, they will also need to meet annual greenhouse gas fuel intensity (GFI) targets. Ships that exceed these GFI thresholds will be required to acquire remedial units to offset their excess emissions. Conversely, those that implement zero or near-zero GHG technologies will be eligible for financial incentives, encouraging the adoption of greener practices across the industry.

The compliance framework will feature two levels of GHG Fuel Intensity targets: a Base Target and a Direct Compliance Target. Ships achieving the Direct Compliance Target will qualify to earn “surplus units”, further motivating the transition to sustainable practices.

To facilitate this ambitious initiative, the IMO will establish the Net-Zero Fund, designed to collect pricing contributions from emissions. The revenue generated from this fund will be allocated to reward low-emission ships, support innovation and research, fund training and capacity building, and mitigate the adverse impacts on vulnerable states affected by climate change.

Wrapping up the meeting, IMO Secretary-General Mr. Arsenio Dominguez expressed his optimism regarding the approval of the draft amendments to MARPOL Annex VI, stating, “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, modernise shipping, and demonstrates that IMO delivers on its commitments.”

He further emphasised the importance of continued collaboration, stating, “Now, it is important to continue working together, engaging in dialogue, and listening to one another, if we are to create the conditions for successful adoption.”

As we move forward, the implementation of the Net-zero Framework promises to reshape the maritime industry, steering it towards a more sustainable and environmentally friendly future. The collective efforts of stakeholders across the globe will be crucial in ensuring the success of these regulations and achieving the ambitious climate targets set forth by the IMO.

This moment marks not just a regulatory change, but a transformative shift in how the shipping industry approaches environmental responsibility. As we stand at the cusp of this new chapter, it is imperative that all maritime stakeholders—from ship owners and operators to governments and environmental organisations—unite in their commitment to implementing these vital changes.

The road ahead is undoubtedly challenging, but with collaboration and innovation, the maritime sector can lead the way in the global transition to a net-zero future. The IMO’s framework is a testament to the power of international cooperation in addressing one of the most significant issues of our time: climate change.

For further updates on the implementation of the Net-zero Framework and its impacts on the maritime industry, stay tuned to Net Zero News. Together, let us champion the cause for a sustainable and resilient future for our planet.