In April 2025, after nearly 10 years of negotiations, the International Maritime Organization (the “IMO”) approved new net-zero regulations for global shipping.
Approved through the IMO’s Marine Environment Protection Committee (“MEPC”), the new draft regulations aim to reduce greenhouse gas emissions from ships globally, aiming to reach net-zero emissions by 2050. In addition, they aim to:
The measures will be mandatory for large ocean-going ships over 5,000gt, responsible for 85% of CO2 emissions from international shipping. International shipping accounts for an estimated 3% of global greenhouse gas emissions.
The new draft regulations will be included as amendments to the existing Annex VI (Prevention of air pollution from ships) of the International Convention for the Prevention of Pollution from Ships (“MARPOL”). There are currently 108 parties to the MARPOL Annex VI. Membership covers virtually all (97%) of the world’s merchant shipping fleet by tonnage.
Under the new draft amendments, firstly, ships must comply with a ‘global fuel standard’, requiring ships to reduce their annual greenhouse gas fuel intensity (i.e., greenhouse gas emissions for each unit of energy used) over time. Secondly, ships must comply with a ‘global economic measure’, requiring ships that exceed the annual greenhouse gas fuel intensity thresholds to acquire remedial units to balance deficit emissions. The emissions can be balanced by transferring surplus units from other ships, using surplus units they have banked or using remedial units acquired through contributions to the IMO Net-Zero Fund. Ships using zero or near-zero technologies will also be eligible for financial rewards. The IMO Net-Zero Fund will be established to collect pricing contributions and disburse the revenue towards a number of key initiatives. These include measures to reward low emission ships; support innovation, research, infrastructure and just transition initiatives in developing countries; fund training, technology transfer and capacity building relating to the IMO’s greenhouse gas strategy; and mitigate negative impacts on vulnerable States, including Small Island Developing States and Least Developed Countries.
Following their approval in April 2025, the draft measures are now set to be formally adopted at a forthcoming extraordinary session of the IMO’s MEPC in October 2025. They are expected to enter into force in 2027, 16 months after their adoption.
Volterra Fietta is at the forefront of issues related to climate change. Recent highlights of the firm’s work include representing Barbados before the International Court of Justice and the Inter-American Court of Human Rights in advisory proceedings on the obligations of States in respect of climate change.
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