After years of complex negotiations, countries reached a historic agreement under the UN’s International Maritime Organization (IMO) to reduce greenhouse gas emissions from the global shipping sector. The framework, set to be formally adopted in October 2025 and enforced starting in 2027, targets net-zero emissions by 2050. It introduces mandatory fuel standards and a global carbon pricing system, applying to large vessels over 5,000 gross tonnage, which are responsible for 85% of the sector’s emissions. Despite opposition from several countries, including the U.S., the deal passed by vote and is hailed as a transformative step for maritime climate action.

The framework’s dual mechanism includes progressively stricter fuel intensity standards and a carbon pricing system that penalizes high-emitting ships while rewarding low- or zero-emission vessels. A portion of the collected carbon fees will fund the IMO Net-Zero Fund, designed to support decarbonization projects, innovation, and infrastructure in developing countries. It also aims to protect vulnerable nations—such as small island developing states and least developed countries—from economic harm during the green transition. The agreement signals a major shift in the maritime industry toward sustainable operations through regulatory, financial, and technological levers.