IMO approves new fuel standard and global pricing mechanism for shipping industry

The International Maritime Organization (IMO) has approved measures including a new fuel standard for ships and a global pricing mechanism for emissions at the Marine Environment Protection Committee’s 83rd session (MEPC 83) as part of its efforts to establish a legally binding framework to reduce greenhouse gas (GHG) emissions from ships globally. 

The IMO net-zero framework is the first in the world to combine mandatory emissions limits and GHG pricing across an entire industry sector with the aim of achieving net-zero emissions by or around 2050. 

These measures, set to be formally adopted in October 2025 before entry into force in 2027, will become mandatory for large ocean-going ships over 5,000 gross tonnage, which emit 85% of the total CO2 emissions from international shipping.