Every day, tens of thousands of ships traverse the world’s oceans, moving nearly 90% of global cargo—everything from grain and electronics to vehicles and fuel. This vital system underpins the global economy, but it also comes with an environmental cost: international shipping is responsible for roughly 3% of global greenhouse gas emissions.
For years, shipping emissions remained a complex and often sidelined issue in global climate talks. That changed in April 2025, when the International Maritime Organization (IMO) approved a landmark plan to drive the shipping industry toward net-zero emissions by around 2050.
“This demonstrates that multilateralism and the United Nations are still relevant and important in these particular times,” said IMO Secretary-General Arsenio Dominguez, reflecting on the breakthrough agreement reached during the Marine Environment Protection Committee’s 83rd session. The framework marks the culmination of years of negotiations between IMO member states—including both major maritime powers and vulnerable small island nations facing the realities of rising seas.
A Global Commitment to Decarbonization
Dubbed the IMO Net-Zero Framework, the agreement introduces a two-pronged strategy:
- A global fuel standard designed to reduce the greenhouse gas (GHG) intensity of marine fuels, and
- A market-based mechanism that requires polluting vessels to purchase “remedial units” or offset emissions by contributing to the IMO Net-Zero Fund.
Vessels that outperform emissions targets can earn surplus credits—creating an incentive for early adoption of low- or zero-emission technologies. The revenues generated from the fund will support climate efforts in developing nations, port infrastructure development, and technology access—critical for ensuring a fair and equitable global energy transition.
Accountability, Incentives, and Innovation
The new rules will initially apply to large ocean-going ships over 5,000 gross tonnes, which account for approximately 85% of the industry’s emissions. IMO member states will oversee implementation through rigorous certification, verification, auditing, and reporting systems.
This framework sends a strong market signal, rewarding operators who invest in cleaner vessels and penalizing those who lag behind. According to Dominguez, “There is a cost to decarbonizing—and a cost to polluting. Our goal is to minimize the impact while accelerating innovation.”
Technologies like ammonia and hydrogen fuels, solar-assisted systems, wind propulsion, and even onboard carbon capture are expected to play a significant role. IMO’s rules are designed to support, not hinder, innovation—recognizing that new solutions will emerge as the industry adapts.
Timelines and Targets
The framework sets clear benchmarks for emissions reductions:
- By 2030: Cut emissions by at least 20%, aiming for 30%.
- By 2040: Cut emissions by at least 70%, aiming for 80%.
- By 2050: Achieve net-zero emissions.
The first compliance year will begin in 2028, giving shipowners and operators time to adapt fleets, fuel strategies, and infrastructure. Importantly, the IMO has committed to an iterative approach—continually reviewing and adjusting the framework to keep pace with technological, economic, and environmental developments.
More Than Carbon
While greenhouse gases dominate the conversation, the IMO continues to address broader environmental impacts from shipping. Measures include managing underwater noise, preventing the spread of invasive species through ballast water, and reducing biofouling on ship hulls—each critical for protecting ocean ecosystems.
What This Means for Our Industry
At Clipper Oil, we recognize the maritime sector’s pivotal role in the global economy—and its responsibility in fighting climate change. As fuel suppliers to fleets around the world, we are closely monitoring these developments and working with our partners to ensure compliance, supply chain readiness, and access to cleaner fuel options.
The Net-Zero Framework represents a turning point for the industry. With international alignment and a clear policy path ahead, shipping now has a stronger foundation to decarbonize efficiently and equitably. The road to 2050 will be challenging—but it’s also filled with opportunity.
