An overview before the next negotiating round of the International Maritime Organization (IMO)
Executive Summary
In 2023, the International Maritime Organisation (IMO) established a ‘Strategy on the Reduction of GHG Emissions from Ships’ for maritime transport’s decarbonisation. This framework includes short-term measures to strengthen energy efficiency, mid-term solutions to reduce green-house gases (GHG), and a long-term vision to achieve full decarbonisation by 2050. By April 2025, IMO member states should reach consensus on the Strategy’s mid-term measures, which will establish clear targets and a GHG reduction pathway, alongside an economic incentive to support the use of net- and near-zero carbon solutions. As negotiations on these technical and economic measures are ongoing, there are two possible architectures for the IMO’s net-zero framework, while potential middle-ground solutions are also being explored. One architecture is championed by the European Union and Japan, and the other one is promoted by Angola, Argentina, Brazil, China, Ecuador, Norway, South Africa, United Arab Emirates and Uruguay. A third bloc of Pacific Caribbean, and some African countries, has a similar approach as the EU-Japan one while showing greater ambition. In this context, the European Union has an important role as an ‘honest broker’, to advocate for an ambitious proposal and resist ineffective compromise.
Given the prominence that decarbonisation will have at the Third United Nations Ocean Conference (UNOC3) and the Blue Economy and Financial Forum (BEFF) in June 2025, it is crucial that the level of ambition remains high.
This paper analyses the IMO framework and emphasises that the negotiation approach taken by the EU and Japan is essential to achieving carbon neutrality, as it involves the adoption of a complementary basket of measures. These complementary measures include a technical component which sets progressively stricter carbon intensity targets for marine fuels based on a well-to-wake methodology, ensuring that emissions are assessed across their full life-cycle. A carbon levy is also proposed as a mean to support the transition, providing financial incentives for the wide-spread adoption of clean fuels. Additionally, the definition of near-zero fuels should be clearly established, explicitly excluding first-generation biofuels to prevent environmentally harmful practices. These three components make this approach the most viable solution for cutting emissions in the sector and ensure a just and equitable transition.
Implementing the IMO’s measures requires a bold and ambitious approach, propelling a shift to net-zero and near-zero fuels, along with enhanced energy efficiency and innovative operational practices. Indeed, to meet the GHG emission reduction targets, countries will have to undertake a series of changes: reduce their reliance on fossil fuels, switch to alternative fuels (excluding first generation biofuels), invest in energy efficiency and energy sobriety through greener technologies to cut emissions and improve ship performance. Finally, ports will play a dual role in the transition to net-zero shipping. Decarbonising the fleet will only be possible if ports adapt to provide access to alternative fuels and greener technologies. Port authorities will also play a central role in enforcing IMO regulations, with their ability to ensure compliance likely to depend on robust data collection and oversight.