In October, the International Maritime Organization will make a crucial decision on the adoption of the Net-Zero Framework, the global regulator’s plan to achieve its decarbonisation strategy.
This Q&A explains what’s included in the framework, how the regulations will work, the industry’s likely next steps after it is adopted, and what might happen if the agreement fails.
What is the International Maritime Organization?
The International Maritime Organization (IMO) is the shipping industry’s global regulator. It is a specialised agency of the United Nations. The IMO has 176 member states and three associate members. Additionally, 66 intergovernmental organisations have observer status, while 89 international non-governmental organisations have consultative status. Those lists can be found here.
What is the Marine Environmental Protection Committee (MEPC)?
The Marine Environment Protection Committee (MEPC) addresses environmental issues under the remit of the IMO. It convenes approximately one to two times per year to address issues like the control and prevention of ship-source pollution covered by the International Convention for the Prevention of Pollution from Ships (MARPOL) treaty.
What does the Marine Environmental Protection Committee (MEPC) do?
Several key decisions have been reached at past MEPC meetings, such as the adoption of a revised greenhouse gas emissions reduction strategy at MEPC 80 in July 2023. The 2023 IMO Strategy on Reduction of GHG Emissions from Ships called for net-zero sector emissions “by or around 2050”, set ambitious indicative 2030 and 2040 checkpoints for emissions reductions, and introduced a target for zero- or near-zero-emission fuels and technologies to make up at least five percent (striving for ten percent) of the energy used by international shipping by 2030. Read more on that here.
At MEPC 83 in April 2025, Member States approved the IMO’s Net-Zero Framework, which included global and binding regulations to reduce greenhouse gas emissions and achieve the goals of the 2023 strategy. When adopted and enforced, this will make shipping the first (and so far only) industry with binding emissions reductions.
What is in the IMO’s Net-Zero Framework?
The Net-Zero Framework (NZF) includes a package of technical and economic elements that sets the sector on a transition path to net-zero emissions by 2050. This includes a global fuel standard that sets GHG intensity reduction targets for each year through 2035 and penalties for failing to meet them.
It also established a credit trading scheme through which vessels with lower emissions can generate credits to sell to owners of higher-emissions vessels. Revenues generated by the penalties will fund a reward mechanism for zero- and near-zero emission fuels and support a just and equitable transition. This includes areas such as availability, uptake, and transfer of zero-emission fuels and technologies, seafarer training, capacity building, and addressing disproportionate negative impacts on developing states. More about what is included can be found here.
When adopted, the NZF will be included in a new Chapter 5 of Annex XI of MARPOL. There are currently 108 parties to Annex VI, which together cover roughly 97% of the global shipping fleet by tonnage.
What was the reaction to the IMO’s Net-Zero Framework after MEPC 83?
The Global Maritime Forum and the Getting to Zero Coalition, a network of more than 180 leading maritime companies, applauded the NZF but cautioned that the agreed measures may not be strong enough on their own to deliver on the IMO’s 2023 zero-emission strategy.
The GHG intensity targets create uncertainty around whether the strategy’s emissions reduction checkpoints for 2030 and 2040 will be met. As currently designed, the measures are unlikely to incentivise the rapid development of e-fuels such as e-ammonia or e-methanol, which will be needed in the long run due to their scalability and emission reduction potential. A failure to begin investing in these fuels now would put the target of at least 5% zero- and near-zero emission fuel use by 2030 and the industry’s entire 2050 net-zero goal at risk. Read more about this here.
What is the status of the IMO’s Net-Zero Framework now?
The measures included in the NZF are set to be formally adopted during a so-called “Extraordinary Session” of the MEPC at IMO headquarters in London from 14-17 October. While April’s MEPC 83 meeting was about agreeing on the framework’s content, the extraordinary session is about whether it will be formally adopted and enter into force.
When the measures outlined in the NZF were voted on in April, 63 countries voted in favour, 16 voted against, and 24 abstained. The vote itself was somewhat unusual, as the IMO typically tries to make decisions through consensus.
At the extraordinary session in October, the NZF could be adopted by consensus or voted on among Member States. If the latter, only the states that are party to MARPOL Annex VI and present can vote. If two-thirds vote in favour of the framework, it will be adopted.
What happens if and when the Net-Zero Framework is adopted?
Once the NZF is formally adopted, its text can no longer be changed. The adoption triggers what’s known as a “tacit acceptance period,” which is expected to last at least ten months. If any parties wish to object to the framework and block its entry into force, they must do so during this period. For an objection to succeed, it would need the support of either at least one-third of the Annex VI parties or parties representing more than half of global tonnage.
Assuming there are no successful objections, the measures included in the framework would then enter into force in spring 2027. This allows shipowners to update their Ship Energy Efficiency Management Plans (SEEMP) before the measure take effect on 1 January 2028. From that date forward, the regulations will become mandatory for large ocean-going ships over 5,000 gross tonnage, which emit 85% of the total CO2 emissions from international shipping.
What will happen if the IMO’s Net-Zero Framework is not adopted?
Without the regulatory guidance provided by the NZF, the maritime industry will face greater uncertainty over how and when to invest in new vessels and fuels. In the long run, this uncertainty will create additional costs for companies, countries, and consumers.
It is important to note, however, that even if the IMO member states fail to adopt and accept the Net-Zero Framework, the IMO's 2023 GHG Strategy, and the decarbonisation imperative that underlies it, will endure.
However, failure to adopt the framework (and soon) risks significant negative consequences for the shipping industry, particularly in terms of the risk this uncertainty would pose to very large investments—ones that are time sensitive, critical to global trade, and have the potential to deliver significant benefits for many different economies.
For these reasons, the Getting to Zero Coalition released a joint statement urging IMO Member States to support the Net-Zero Framework.