IMO Net-Zero Framework

IMO Net-Zero Framework

The Net-Zero Framework (NZF) is the International Maritime Organization’s (IMO) regulatory response to the 2023 IMO GHG Strategy, aiming to achieve net-zero greenhouse gas (GHG) emissions by or around 2050. The goal of the NZF is to ensure international shipping can meet the strategy’s GHG emissions reduction targets; to accelerate the uptake of zero or near-zero GHG fuels, technologies and energy sources (ZNZs); and to support a just and equitable transition of the maritime sector.

This new legally binding framework includes requirements on GHG fuel intensity, in combination with a pricing and reward mechanism – the first of its kind to cover a global industry sector. The new regulations were approved at MEPC 83 in April 2025 and are due for adoption in October 2025, taking effect from 2028. The NZF applies to ships of over 5,000 GT engaged in international trade.

The regulations provide a technology-neutral approach whereby performance is measured as well-to-wake GHG emissions per energy used, supplemented by sustainability criteria. The reduction factors approved as part of the regulations provide long-term certainty to ships regarding the GHG emissions reduction requirements, as well as long-term certainty to fuel providers regarding potential demand.

The NZF presents a new regulatory era in which ships will be required to gradually adopt fuels that are typically three to four times more expensive compared with conventional fossil fuels. Given the long lifespan of ships, shipowners should prepare now for the new net-zero GHG emission regulations to ensure cost-effective compliance, both at the ship and the fleet level.

While the legal framework of the NZF is in place, a large amount of work remains for the IMO to develop and amend necessary guidelines well before the regulations enter into force.

Continue reading to learn about the GHG Fuel Intensity (GFI) on which the requirements are based.