Global shipping, the backbone of international trade, has long escaped climate scrutiny. That changed in April 2025 with a landmark agreement. The International Maritime Organization (IMO) adopted a Net-Zero Framework, setting ambitious goals for the sector. This historic deal aims to eliminate greenhouse gas emissions from shipping by 2050.
Every day, thousands of ships move 90 per cent of global cargo. This efficiency drives economies but also fuels climate change. The sector emits roughly three per cent of global greenhouse gases. For years, regulating ship emissions remained a difficult topic. Complex international negotiations caused repeated delays.
But with rising sea levels threatening small island nations, pressure mounted. The shipping industry could no longer avoid accountability. After years of talks, IMO member states reached a rare consensus. “This shows multilateralism still works,” said IMO Secretary-General Arsenio Dominguez.
FROM VOLUNTARY TARGETS TO BINDING RULES
The journey to the 2025 agreement was long and challenging. The IMO’s first step came in 2011, mandating energy efficiency measures for ships. In 2018, it adopted the Initial Strategy on Reducing GHG Emissions. Yet, those targets lacked legal force.
By 2023, the IMO set clearer goals. These included cutting emissions by 20 per cent by 2030 and 70 per cent by 2040. The strategy also called for phasing in zero-emission fuels. The new Net-Zero Framework transforms these plans into binding international regulations.
“This is no longer just a plan. It’s enforceable,” Dominguez explained. The Framework introduces firm deadlines and compliance mechanisms. For the first time, global shipping faces mandatory climate action.
KEY MEASURES DRIVING THE TRANSITION
The Framework rests on two key measures. First, a global fuel standard will lower ships’ greenhouse gas intensity. Second, a carbon pricing mechanism will penalize excessive emissions.
Ships that exceed their emission thresholds must purchase remedial units. Alternatively, they can invest in the IMO Net-Zero Fund. Conversely, ships that outperform their targets can earn surplus credits. These credits can be traded, creating financial incentives for greener operations.
“The polluter pays, but innovators get rewarded,” Dominguez stated. Funds collected will support developing countries. They will help finance access to alternative fuels and build technical capacity.
ENSURING ACCOUNTABILITY AND FAIRNESS
Oversight is crucial to success. Member states will enforce compliance through strict verification, audits, and reporting. The IMO will monitor implementation and ensure transparency. Special support will go to small island developing states and least developed countries.
“We balance strict enforcement with fairness,” Dominguez emphasized. The Framework targets large ocean-going ships over 5,000 gross tonnes. These account for 85 per cent of the sector’s emissions. By focusing on these vessels, the IMO maximizes impact.
MITIGATING ECONOMIC IMPACT ON TRADE
A major concern is the potential impact on global supply chains. Developing nations, reliant on imports, fear rising costs. The IMO conducted a comprehensive impact assessment to address these fears.
“Decarbonizing has costs, but so does pollution,” Dominguez said. The pricing mechanism will support the industry’s transition. Financial tools will minimize disruptions and ensure an equitable shift.
INNOVATION: THE ENGINE OF DECARBONIZATION
Innovation will drive the sector’s transformation. Alternative fuels like ammonia and hydrogen are key. Wind propulsion, long forgotten, is making a comeback. Solar-assisted shipping and onboard carbon capture are also advancing.
“Our regulations aim to foster innovation, not restrict it,” Dominguez explained. Safety and training will be essential as these new technologies are adopted. Protecting seafarers remains a top priority.
“We must prepare people for the transition,” he stressed. The IMO is developing training programs and safety standards for alternative fuels.
STRICT TIMELINES, REAL CONSEQUENCES
The Framework sets strict targets. Emissions must fall by 20 per cent by 2030, aiming for 30 per cent. By 2040, the reduction must reach 70 per cent, striving for 80 per cent. The ultimate goal is net-zero emissions by 2050.
The first compliance year is 2028. This gives the industry little time to adjust. “This is a step-by-step process,” Dominguez noted. The IMO will continuously review progress and refine measures as needed.
BEYOND CARBON: SHIPPING’S BROADER ENVIRONMENTAL IMPACT
Shipping’s environmental footprint extends beyond carbon emissions. The IMO also tackles biofouling, which increases drag and fuel use. Measures address underwater noise that disturbs marine life. Ballast water management prevents invasive species from spreading globally.
“Ships touch many parts of the environment. We must protect them all,” Dominguez said. The Framework complements these ongoing efforts, creating a holistic approach to maritime environmental protection.
NEXT STEPS: FROM AGREEMENT TO ACTION
The adoption of the Framework marks a starting point, not an end. The IMO will now develop guidelines for implementation. Key focus areas include refining the carbon pricing mechanism and supporting capacity building.
The Framework enters into force in 2027. Full compliance starts in 2028. Dominguez remains confident: “We’ve proven multilateralism works. Now we move to action.”
A RARE VICTORY FOR GLOBAL COOPERATION
For years, the shipping sector’s emissions were ignored in climate strategies. The 2025 Net-Zero Framework changes that narrative. It represents a rare victory for international cooperation.
This agreement signals a new era of environmental responsibility for global trade. The path ahead remains challenging, but the direction is clear. “It’s not about if we succeed. We are succeeding,” Dominguez concluded. “This is the start of a transformative journey.”
THE ROAD AHEAD FOR GLOBAL SHIPPING
The shipping industry now stands at a crossroads. With binding regulations, financial incentives, and innovation at its core, the sector has embraced climate accountability. The Net-Zero Framework offers a blueprint for decarbonizing global trade.
Continuous monitoring, fair implementation, and global cooperation will be essential. As trade volumes grow, the world will watch how shipping navigates this green transition. For Dominguez and the IMO, success is not optional. It is imperative.
“We are taking the first steps towards a cleaner future. Now, we must stay the course,” Dominguez said. The shipping industry’s voyage to net-zero has officially begun.Global shipping, the backbone of international trade, has long escaped climate scrutiny. That changed in April 2025 with a landmark agreement. The International Maritime Organization (IMO) adopted a Net-Zero Framework, setting ambitious goals for the sector. This historic deal aims to eliminate greenhouse gas emissions from shipping by 2050.
Every day, thousands of ships move 90 per cent of global cargo. This efficiency drives economies but also fuels climate change. The sector emits roughly three per cent of global greenhouse gases. For years, regulating ship emissions remained a difficult topic. Complex international negotiations caused repeated delays.
But with rising sea levels threatening small island nations, pressure mounted. The shipping industry could no longer avoid accountability. After years of talks, IMO member states reached a rare consensus. “This shows multilateralism still works,” said IMO Secretary-General Arsenio Dominguez.