In Short

• IMO’s Net-Zero Framework proposes strict fuel and emissions limits for large ships from 2027.
• Shipping industry groups support the framework, saying it will drive investment in cleaner fuels.

The International Maritime Organization (IMO) has put forward a Net-Zero Framework aimed at reducing carbon emissions from large ocean-going ships.

This plan would introduce mandatory fuel standards and greenhouse gas pricing, meaning ships that exceed emissions limits would have to buy remedial units to offset their excess.

The rules would apply from 2027 to ships over 5,000 gross tonnage, which make up about 85% of global shipping CO2 emissions. Funds collected would go into a Net-Zero Fund to support low-emission ships, innovation in developing countries, and climate resilience for vulnerable states.

Read More: NVIDIA-Powered AI Models Cut Ship Fuel Use and Emissions

The Trump Administration has rejected this proposal, calling it a “global carbon tax on Americans”.

Officials argue it would raise transportation costs, cruise prices, and energy expenses for U.S. consumers. They claim the framework would benefit China, restrict the use of LNG and biofuels—fuels where the U.S. has technological advantages—and impose unattainable fuel standards. The administration has warned it will retaliate against countries supporting the IMO plan.

Despite U.S. opposition, the International Chamber of Shipping (ICS), representing over 80% of the world’s merchant fleet, has expressed support for the framework.

Also Read: Pacific Basin Closes $250M Sustainability-Linked Loan for Green Goals

They believe it will give the industry clarity and incentives to invest in cleaner fuels. The IMO is set to vote on the plan in October 2025, release detailed rules in Spring 2026, and enforce the measures from 2027 onward.

Ends/

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Source: gCaptain