Countries reach historic deal to cut shipping emissions

A strong success for maritime governance, but is it enough?
Close up of large red merchant crago ship in the ocean underway.

By Alyn Ware
Program Director, World Federalist Movement-Institute for Global Policy. Member, MEGA Steering Committee

On April 11, after nearly ten years of intense negotiations, the International Maritime Organization (IMO) adopted a new binding framework to cut greenhouse gas emissions from global shipping, setting mandatory fuel standards and introducing an industry-wide carbon pricing mechanism (see IMO approves net-zero regulations for global shipping, April 11, 2025).

The Net-Zero Framework was adopted as an amendment to Annex VI of the International Convention for the Prevention of Pollution from Ships (The MARPOL Convention), making it binding on the 108 States parties to the Annex. They cover 97% of the world’s merchant shipping fleet.

The new regulations mean that starting in 2027, ship owners will have to use increasingly cleaner fuels or face fines, even if they are registered in countries that did not support the new agreement.

“It’s a milestone. A success for global governance,” said Ingmar Rentzhog, CEO and founder of We Don’t Have Time, a participating organization in Mobilizing an Earth Governance Alliance (MEGA). “The IMO’s decision-making process avoids the paralyzing requirement for consensus that plagues climate COPs. This is proof of concept for a world hungry for functioning international cooperation and governance.” (Global Governance Just Won Big — As The U.S. Left The Room, Forbes, April 12, 2025).

The deal was nearly derailed after Saudi Arabia forced a last-minute vote and the US pulled out of the talks in London – but it eventually passed with 69 countries in favour, 16 opposed and 25 abstentions.

Countries opposing were primarily oil-producing countries. Countries abstaining were primarily small island states and developing countries who had been pushing for stronger standards.

The new regulations are set to be formally adopted in October 2025, and will enter-into-force in 2027. The regulations will then become mandatory for large ocean-going ships over 5,000 gross tonnage.  According to the IMO, these emit 85% of the total CO2 emissions from international shipping.

“The approval of draft amendments to MARPOL Annex VI mandating the IMO net-zero framework represents another significant step in our collective efforts to combat climate change, to modernize shipping and demonstrates that IMO delivers on its commitments.” said IMO Secretary-General Mr. Arsenio Dominguez.

Mr Rentzhog argues that the new regulations are a double blow for the fossil fuel industry.

“Almost half of all commercial ships transport oil, coal, and gas. The new emissions fee raises the cost of transporting them—while accelerating the transition away from fossil fuels used to power the ships themselves. The economic implications were clear, and so was the resistance from fossil fuel-aligned countries,” said Mr Rentzhog. “But this time, they lost. The outcome wasn’t just a win for climate policy—it was a rare and timely victory for global governance itself.”

A win for global governance, the oceans and the climate. But is it enough? The 25 nations abstaining said no.

The Pacific Islands delegation said in a statement following the vote that the agreement “would do too little, too late to cut shipping emissions and protect their islands.”

“Let us be clear about who has abandoned 1.5°C. Saudi Arabia, the US and fossil fuel allies pushed down the numbers to an untenable level and blocked progress at every turn,” said Ralph Regenvanu, Minister of Energy and Climate Change for Vanuatu.

They Pacific Islands delegation are part of a coalition of over 50 countries across Europe, Africa, Asia, and the Caribbean that rallied behind a proposal to charge commercial vessels a 1.5C-aligned, flat high fee for each tonne of carbon emitted. According to these countries, the compromise adopted in the new IMO framework is insufficient and not-fit-for purpose (see ‘Too Little, Too Late’: Developing Countries Disappointed at World’s First Carbon Levy on Shipping, Earth.org).

Their position is supported by Clean Shipping for People and the Planet and Seas at Risk, two international environmental organizations active in the negotiations.

“IMO member states squandered a golden opportunity for the global shipping sector to show the world how it can turn the tide on catastrophic climate heating”, said Delaine McCullough, President of the Clean Shipping Coalition. “Instead of setting a strong energy efficiency regulation, combined with an ambitious fuel standard and sufficiently high price on all GHG emissions from ships, the IMO instead chose low ambition and business as usual.”

“This week’s outcome misses even IMO’s baseline – leaving the 2030 decarbonisation target dead in the water, with potential disastrous long-term impacts for people and the planet,” said Anaïs Rios, Shipping Policy Officer for Seas At Risk. “The absence of bold targets brought bold voices: the emergence of a strong, united voice from African, Caribbean and Pacific nations shows that the global south won’t wait for the north to get their act together.” (see IMO Climate Agreement Shipwreck Misses Targets and Betrays Most Vulnerable).

Environmental organizations and the countries most vulnerable to climate change continue to be frustrated by the failure of multilateral bodies to adopt binding regulations that would ensure sufficient reduction of carbon emissions to protect the climate.

This is why African, Pacific and Caribbean countries have been so active in the case on Obligations of States in respect of Climate Change which is currently pending in the on International Court of Justice. A strong decision – which is expected from the court later this year – could considerably strengthen the diplomatic power of these countries in all subsequent multilateral negotiations on climate protection (See ICJ case on Climate Change).

This is also the reason that Mobilizing an Earth Governance Alliance (MEGA) is promoting a range of earth governance proposals and campaigns that would ensure better accountability and implementation of obligations to protect the climate and other eco-systems.

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