Agreement to achieve zero emissions from global shipping by 2050.

The International Maritime Organization (IMO) has agreed to achieve zero greenhouse gas emissions from global shipping by 2050. This is a historic consensus in the fight against climate change, marking significant progress in reducing the environmental impact of the shipping industry globally.

International Maritime Organization (IMO)

The International Maritime Organization (IMO) is an agency of the United Nations, dealing with maritime affairs, especially the safety and security of shipping and the prevention of marine pollution from ships. The IMO’s main task is to create an effective legal framework for the maritime industry in the broadest sense, as well as to control their widespread adoption and implementation.

As of 2023, it has 175 countries as members and 3 countries as associate members (Hong Kong, Faroe Islands and Macau). 66 intergovernmental organizations have cooperation agreements with the IMO, while 88 NGOs have consultative status with it.

What are the basic premises of the adopted agreement?

The basic thrust of the agreement stems from the IMO’s 2023 strategy, which clearly sets out a roadmap for reducing greenhouse gas emissions from global shipping, with targets of reducing emissions by at least 20 percent (aiming for 30 percent) by 2030, by at least 70 percent (aiming for 80 percent) by 2040, compared to 2008 levels, and achieving zero net emissions by around 2050.

The agreement includes a new measure setting a global standard for progressively reducing the intensity of greenhouse gas emissions from shipping fuels. The measure applies to the full life cycle of greenhouse gas emissions from marine fuels. It uses standardized criteria and a common certification system that ensures a level playing field, regardless of where the fuel is produced, transported or used. As a result, it will prevent the transfer of emissions to other sectors and encourage sustainable investments that reduce emissions across the cycle and around the world.

New emissions pricing mechanism

The new measure also introduces the first global emissions pricing mechanism, which, along with financial incentives, will prompt shipping companies to use the cleanest fuels and technologies at an early stage. For example, to invest in emission-free or near-emission-free shipping fuels, such as renewable methanol and ammonia. By stimulating investment in cleaner fuels, the measure will help reduce the shipping industry’s carbon footprint.

The pricing mechanism will apply to a portion of emissions from international shipping starting in 2028, with an initial price of $100 per ton of_CO2. This will generate revenues, estimated at $11-13 billion per year, which will be used to support the development and deployment of these zero- and near-emission fuels. Some of the funds will also be used to support a fair and equitable transition. They will be shared with special attention to the least developed countries and small island developing states

At the same time, it is worth remembering that as of January 1, 2024, the EU ETS has extended its impact to the maritime transport sector, which means that shipowners must monitor emissions and purchase EUA units. We wrote more about this in a previous article: Does the EU Emissions Trading Scheme (EU ETS) really work?

When will the new agreement to achieve zero emissions take effect?

As envisioned, the adopted agreement will be confirmed by the International Maritime Organization in October 2025. As negotiations on the new agreement come to an end, work will begin on the implementation of the adopted framework in each country. As announced, the European Commission will evaluate the adopted agreement to see how it interacts with current EU maritime regulations, maintaining environmental integrity while avoiding double burdens.

According to the European Commission, the adopted agreement underscores the international maritime community’s strong commitment to reducing the sector’s carbon footprint while ensuring a fair transition and a level playing field. As announced, the European Commission will remain actively engaged in its adoption and effective implementation.