Shipping is responsible for around 3 percent of global greenhouse gas emissions, with international trade relying heavily on the sector.

Approximately 80-90 percent of global goods trade is carried by sea, making the decarbonisation of maritime transport critical to meeting global climate goals.

Achieving net-zero emissions by 2050 is essential, but the shipping sector faces significant challenges. A global regulatory framework is needed to ensure fairness across the industry, while the demand for green fuels, such as e-fuels, is immense. In fact, meeting the sector’s energy needs would require the totality of today’s global wind capacity.

To meet these challenges, the International Maritime Organization (IMO) has developed the Net-Zero Framework, a pioneering initiative aimed at decarbonising the shipping industry. This framework introduces mandatory emissions limits and a pricing mechanism across the entire sector.

In April 2025, the IMO will introduce a global fuel standard and pricing mechanism to help drive emissions reductions. These regulations will provide the necessary incentives and investments to support the production of sustainable green fuels and ensure a level playing field for the global shipping industry.

This ambitious plan will be adopted in October 2025, paving the way for the shipping industry’s transition to net-zero emissions.

If fully implemented, the IMO’s Net-Zero Framework can drive significant reductions in greenhouse gas emissions from the shipping sector, aligning with global climate targets.

It can stimulate the production and use of green fuels, reduce dependency on fossil fuels and enable the maritime industry to meet its 2050 climate neutrality goal. The regulatory framework can also foster investment in innovative technologies and infrastructure, creating a more sustainable and resilient global shipping industry.

By providing clear policy direction, the framework can level the playing field for shipping companies worldwide, ensuring fair competition and accelerating the industry’s transition to a low-carbon future