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IMO Net-Zero Framework
Emissions pricing system From Wikipedia, the free encyclopedia
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The IMO Net-Zero Framework (NZF) is a proposed United Nations system to price maritime shipping emissions. It was set to apply from 2028 to shipping in IMO member countries, applying a carbon price of 100 USD per tonne of CO2 equivalent.[2][3] If implemented, it would have imposed a fee on vessels that pollute above a certain threshold, thus incentivizing the shipping industry, known for its extensive pollution, to become less polluting.[4] Prior to the scuttling of the agreement by the second Donald Trump administration, the agreement was supported by the leading shipping industry lobby, most states, including the European Union, Japan, China, Britain and the United States.[4]
The NZF would be the first global pricing mechanism for emissions, to be administered by the United Nations's International Maritime Organization. It was drafted by Marine Environment Protection Committee Meeting 83 (MEPC83) and was initially scheduled for adoption by the IMO at an extraordinary meeting in October 2025.[2][3][5] It was delayed until October 2026, amid the second Donald Trump administration's threats of sanctions against diplomats and tariffs against countries that supported the agreement.[6][7] Marco Rubio, U.S. Secretary of State, personally called officials in different countries to threaten financial penalties and other penalties.[4] The U.S. worked with Saudi Arabia to scuttle the agreement.[4]
Maritime shipping represents 3% of global greenhouse gas emissions. The Framework would apply to ships above 5,000 gross tonnage, which account for 85% of those emissions.[1][8]
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Negotiations
The IMO Net-Zero Framework (NZF) was drafted by Marine Environment Protection Committee Meeting 83 (MEPC83) and was initially scheduled for adoption by the IMO at an extraordinary meeting in October 2025.[2][3][5] However, it was delayed until October 2026, amid the second Donald Trump administration's threats of sanctions against diplomats and tariffs against countries that supported the agreement.[6][7] The Trump administration's pressure campaign was characterized as "extraordinary, even by the standards of the Trump administration’s combativeness."[4]
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Proposed system
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In the run-up to MEPC83, countries heavily debated what form the carbon pricing mechanism should take—a simple levy was favoured by around 60 island nations. Meanwhile, 16 mainly bigger emerging market economies favoured a carbon trading system in which clean ship operators could sell their rights to pollute to emissions-heavier ones.[9]
In the end, countries agreed on a carbon trading system with two tiers, based on a proposal by Singapore. If ship operators were to fail to meet hard emission reduction targets, they would be able to buy cheaper extra certificates. If they were to fail easy emission targets, however, they would have to buy expensive extra credits. This system is designed to preserve decarbonisation incentives.[9][2]
The IMO Net-Zero Framework sets various intermediate targets on the way to net-zero shipping emissions by or around 2050.[2][9]
The NZF provides alternative low-carbon fuels with a competitive advantage compared to traditional marine fuels such as very low-sulphur fuel oil (VLSFO). It may thus lead to an increased uptake of LNG, methanol and ammonia as fuel sources.[10] Wind energy may also qualify a ship for rewards, but the NZF rules are yet to specify by how much.[11]
Under the Framework, companies would pay for their emissions to a newly created IMO Net-Zero Fund. The money would be used to mitigate the negative impacts of climate change on vulnerable countries, including small island developing states (SIDS) and least developed countries (LDCs).[8]
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