At a time marked by geopolitical tension and economic uncertainty, the agreement stands out as a significant achievement for international cooperation on climate action. It introduces binding global regulation for international shipping—an important first step towards aligning the sector with global climate goals.

The deal includes a fuel standard and a financial mechanism aimed at reducing greenhouse gas emissions from ships over time. The standard will gradually tighten emissions requirements, helping to put the sector on track for climate neutrality by 2050. Meanwhile, the financial element will support the uptake of green fuels and assist the transition in developing countries.

Denmark has played an active role in the negotiations. While some major economies—such as the United States, Russia and Saudi Arabia—chose not to support the agreement, the Danish government sees the result as a breakthrough for the sector.

“In uncertain times, with stormy waters across the globe, this agreement marks an important step towards a greener future and sends a positive signal to Danish maritime businesses. It has not been an easy process, and not all are on board yet. But Denmark has worked hard. While we had hoped for an even more ambitious outcome, this agreement is historic. It marks a first step towards climate-neutral shipping by 2050. We will continue the dialogue and do our part to secure the final adoption in October.” Morten Bødskov, Minister for Industry, Business and Financial Affairs.

The agreement supports the implementation of the IMO’s climate strategy, which was updated in 2023. With international shipping responsible for around 3 percent of global greenhouse gas emissions, regulatory progress at the global level is seen as a key enabler of the sector’s transition towards sustainability.