Panama has joined forces with several European countries and the European Commission in calling for the early adoption of governing provisions for the IMO Net-Zero Fund.
Their proposal urges the International Maritime Organization (IMO) to finalize the fund’s rules well before its planned revenue collection in 2029. This proactive step is seen as essential for ensuring that the fund’s structure and governance are ready in time to support global decarbonization efforts in shipping.
Early Governance Framework for the IMO Net-Zero Fund
In their joint submission, Panama and its European counterparts stressed that the IMO should finalize governance rules by the 85th session of the Marine Environment Protection Committee (MEPC) in 2026. Doing so would allow enough time to establish the fund’s governing board, operational structure, and financial framework.
By moving early, the IMO would ensure smooth implementation when the new climate rules take effect and avoid delays in channeling funds to zero-emission technologies and developing countries.
Role and Impact of the IMO Net-Zero Fund
The IMO Net-Zero Fund is a cornerstone of the organization’s broader Net-Zero Framework, which blends a global emissions pricing system with fuel standards. The fund is expected to generate between $10–12 billion annually from 2028 onwards, with revenues collected from ships based on their greenhouse gas emissions.
These funds will then be used to reward zero- and near-zero emission technologies, accelerate research, and support infrastructure development in developing states. However, the framework faces growing debate, with industry stakeholders pressing for revisions ahead of its final adoption at the MEPC/ES.2 meeting in October 2025.
Panama’s call, supported by European nations, highlights the urgency of laying down the governance provisions of the IMO Net-Zero Fund before revenue collection begins. By finalizing the rules in 2026, the IMO would ensure readiness and credibility in its climate transition strategy, while also giving the shipping industry clarity on implementation.
With mounting debate ahead of the 2025 MEPC meeting, the coming years will be critical in shaping the role of the IMO Net-Zero Fund in driving sustainable shipping.
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Source: Safety4Sea
