- Shipping Industry Responsible for 85% of Maritime GHG Emissions.
- Net Zero by 2050 Requires Urgent Global Collaboration.
- IMO Pushes for Stronger Climate Action in Shipping.
Every year, about 100,000 commercial vessels move over 11 billion tonnes of goods, fueled by 300 million tonnes of fuel. These shipments cover a wide range of products, from food and medicine to cars and electronics. While shipping plays a crucial role in the global economy, it also significantly contributes to greenhouse gas emissions. In fact, large ocean-going ships that weigh over 5,000 gross tonnes account for roughly 85% of the sector’s emissions, making the push for decarbonisation an urgent global challenge, reports Maersk.
Why Net Zero Matters Now?
Reaching net-zero emissions by 2050, as the International Maritime Organisation (IMO) aims for, requires immediate and coordinated efforts. The availability of alternative fuels is still limited and costly, and only through global regulations can we ensure fair competition and quick adoption. The IMO, a UN agency, is spearheading initiatives to align the shipping industry with the Paris Agreement and the UN Sustainable Development Goals (SDGs).
Net zero means cutting greenhouse gas emissions to levels that nature can absorb, which helps prevent further warming. This goal is linked to the critical 1.5°C climate threshold; going beyond it could lead to severe climate impacts. With global temperatures already 1.2°C above pre-industrial levels, we need to reduce emissions by 45% by 2030 to stay on track.
Pioneering Industry Action
Leading companies like A.P. Moller, Maersk are at the forefront of this transition, pushing for ambitious policies from the IMO and backing the development of zero- and near-zero (ZNZ) fuels. Maersk’s CEO, Vincent Clerc, has highlighted the need to close the cost gap between fossil fuels and cleaner options, emphasising that long-term partnerships throughout the supply chain are essential. Maersk has set a target to achieve net-zero by 2040, a goal validated by the Science-Based Targets initiative (SBTi) in 2024 — a first for the shipping sector. Chief Operating Officer Rabab Raafat Boulos noted that this SBTi validation reflects the company’s commitment to tackling climate change.
Breakthrough at the IMO MEPC Meeting
Exciting news from the 83rd Marine Environment Protection Committee (MEPC) meeting held in April! Member States of the IMO have come together to agree on the legal framework for the first-ever global pricing system for greenhouse gases. If everything goes according to plan and it gets the green light in October 2025, we can expect this framework to kick in by 2027, with compliance starting in 2028.
This milestone is the result of over ten years of hard work by the IMO, beginning with the introduction of energy efficiency measures back in 2011, followed by the Initial IMO GHG Strategy in 2018, and the updated targets set in 2023. The goal? To reduce emissions by at least 20% by 2030 and a whopping 70% by 2040, all while gradually incorporating zero-emission fuels.
Key Features of the Framework
It sets up a two-tier compliance system based on the annual greenhouse gas intensity of ship fuels, which will become stricter as we approach 2050. Ships that don’t meet the required thresholds will face financial penalties, while those that use zero-emission fuels could actually earn rewards.
- Penalty price: USD 380 per ton of CO₂ equivalent for ships that fall short of the base target.
- GHG price: USD 100 per ton of CO₂ equivalent for ships that are between the base and direct targets.
- Rewards: Ships that achieve direct compliance using zero-emission fuels will be eligible for rewards, although the specifics are still being worked out.
For success, the framework will require:
- Standardised lifecycle assessments (LCA) for fuels.
- Strong incentives to encourage the real adoption of zero-emission fuels.
- Robust enforcement and certification systems across all flag States.
Industry and Policy Outlook
The framework sends a strong signal to shipowners, fuel producers, and infrastructure providers. As Morten Bo Christiansen, Head of Energy Transition at Maersk, noted: “It is a remarkable achievement and an important proof point that the world can address the climate crisis with real action. The agreement is not perfect, but it is a huge step forward and a clear signal that the energy transition of this sector will happen at pace.”
The upcoming October 2025 IMO meeting will be critical for formal adoption. If approved, the framework will make shipping the first global sector to implement a greenhouse gas pricing system, setting a pathway for net-zero emissions by 2050.
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Source: Maersk
