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Policy Decarbonisation
Tom Young
21 April 2025
Follow @PetroleumEcon
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Shipping GHG deal ‘a framework to build upon’

Agreement on a two-tier emissions trading scheme does not go far enough to meet IMO GHG reduction targets, say observers

The International Maritime Organisation (IMO) has agreed for the first time a legally binding framework to decarbonise the shipping sector.   Following a meeting of the Marine Environment Protection Committee (MEPC) from 7–11 April 2025 a new fuel standard for ships and an emissions pricing mechanism were agreed.   The measures — applying to large ocean-going ships over 5,000 tonnes — will be formally adopted in October 2025 and enter into force in 2027. “The approval of draft amendments to MARPOL Annex VI mandating the IMO net-zero framework represents another step in our collective efforts to combat climate change,” said IMO secretary general Arsenio Domniguez on agreement at the talks.  D

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