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IMO Net-Zero Framework
From Wikipedia, the free encyclopedia
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The IMO Net-Zero Framework (NZF) is a United Nations system to price maritime shipping emissions. It is 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]
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 is scheduled for adoption by the IMO at an extraordinary meeting in October 2025.[2][3][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][5]
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System
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.[6]
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.[6][2]
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Targets
The IMO Net-Zero Framework sets various intermediate targets on the way to net-zero shipping emissions by or around 2050.[2][6]
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.[7] Wind energy may also qualify a ship for rewards, but the NZF rules are yet to specify by how much.[8]
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Use of funds
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).[5]
External links
- Draft text of the IMO Net-Zero Framework, in MARPOL Annex VI chapter 5, outlining the Net-Zero Framework
See also
References
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