The IMO Net-Zero Framework:
What Shipping's New Carbon Price Means for You
Shipping is heading toward its first-ever global carbon price. The IMO Net-Zero Framework — provisionally agreed by the International Maritime Organization in April 2025 — would make international shipping the first industry sector with a mandatory, worldwide greenhouse gas pricing system. For maritime professionals, understanding this framework is no longer optional: it will shape fuel choices, operating costs, and crew training for decades to come.
1. What Is the IMO Net-Zero Framework?
The Net-Zero Framework is a proposed new Chapter 5 of MARPOL Annex VI, developed to deliver the targets set out in IMO's 2023 Strategy for the Reduction of GHG Emissions from Ships. It has two connected parts:
- A global fuel standard — every large ship must reduce the GHG Fuel Intensity (GFI) of the energy it uses, measured in grams of CO₂-equivalent per megajoule, on a well-to-wake (full lifecycle) basis.
- A global pricing mechanism — ships that emit above the allowed intensity threshold pay into an IMO Net-Zero Fund, while ships using zero or near-zero (ZNZ) fuels can receive rewards from that same fund.
📊 Who Does It Cover?
The framework applies to ocean-going ships of 5,000 gross tonnage (GT) and above — vessels already responsible for more than 85% of international shipping's GHG emissions. Extending coverage to smaller ships (400–5,000 GT) is still under discussion.
2. Why the Vote Keeps Getting Delayed
The Framework was provisionally agreed at MEPC 83 in April 2025, but its formal adoption has faced repeated delays. An extraordinary MEPC session in October 2025 postponed the adoption vote by a year after a coalition led by the United States, alongside other fossil-fuel-producing states, pushed to weaken or scrap the carbon-pricing element entirely. Discussions continued at MEPC 84 in April 2026, and IMO member states are now working toward adoption at the Committee's session in December 2026.
If adopted this year, the earliest realistic entry into force is March 2028, following the mandatory acceptance period built into MARPOL amendments.
3. How the Pricing Mechanism Would Work
Rather than a flat carbon tax, the Framework functions as a tiered incentive system:
- Ships within their GFI target pay nothing extra.
- Ships that miss the target by a smaller margin pay a lower "Tier 1" price per tonne of excess CO₂-equivalent.
- Ships that miss it by a wider margin pay a higher "Tier 2" price.
- Revenue collected flows into the IMO Net-Zero Fund, which rewards ZNZ-fuelled vessels and supports the uptake of cleaner fuels in developing states.
4. What This Means for Maritime Professionals
Even before formal adoption, the direction of travel is clear enough that owners, operators, and crew should start preparing:
- Fuel strategy — expect accelerated interest in LNG, methanol, ammonia, and biofuels as owners position fleets ahead of compliance deadlines.
- Crew training — officers and engineers will need updated competencies for alternative-fuel bunkering, handling, and safety, an area IAMP already tracks closely through STCW-aligned training partners.
- Compliance and reporting — a new IMO GFI Registry is planned as the central system for tracking fuel intensity data and verifying compliance across the global fleet.
- Cost planning — commercial and technical managers will need to factor potential per-voyage carbon costs into charter negotiations and route planning.
🔎 Key Term: Well-to-Wake
Unlike older "tank-to-wake" measures that only count emissions from burning fuel on board, the well-to-wake approach counts emissions across the entire fuel lifecycle — from extraction or production, through transport, to combustion at sea.
5. Frequently Asked Questions
Is the IMO Net-Zero Framework a carbon tax?
Not exactly. IMO describes it as an incentive and funding framework rather than a uniform global carbon tax, since payments scale with how far a ship's fuel intensity exceeds its target, and the revenue is recycled back into the sector to reward cleaner fuels.
When will the Net-Zero Framework take effect?
Formal adoption is targeted for the MEPC session in December 2026. If adopted, the earliest possible entry into force is March 2028.
Which ships are affected?
Ocean-going ships of 5,000 GT and above, which account for over 85% of international shipping emissions. Smaller vessels between 400–5,000 GT may be added later.
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Join IAMP Today →Sources: International Maritime Organization (imo.org), DNV, Carbon Brief. This article is for general information and does not constitute regulatory or legal advice.