During its 83rd session from April 7 to 11, 2025, the International Maritime Organisation's (IMO) Marine Environment Protection Committee (MEPC) approved, among other things, new fuel standards for ships and the first industry-wide global pricing mechanism for emissions. According to the OECD, the global shipping industry, which delivers about 80 percent of international trade, accounts for about 3 percent of global emissions.
Once formally adopted, the new rules should enter into force in 2027 as part of Annex VI of the International Convention for the Prevention of Pollution from Ships (MARPOL) and will apply to large ocean-going ships over 5,000 gross tonnage by 2028. Covered ships will be required to reduce, over time, their annual greenhouse fuel intensity (GFI) (i.e. how much greenhouse gas (GHG) is emitted for each unit of energy used). Ships emitting above these GFI thresholds will have to acquire remedial units to balance their deficit emissions.
An “IMO Net-Zero-Fund” will be established to collect the levies to be collected under the scheme. Its revenues will in part be used to reward low-emission ships and to mitigate the negative impact of climate change on vulnerable states.
While some have criticized these rules as being not aggressive enough, others have praised them as an example of multilateralism. The United States did not participate in the MEPC's meeting and is thought to reject any efforts to impose economic measures against its ships based on GHG emissions. According to press reports, the US has further stated that it will consider reciprocal measures to offset any fees charged to US ships.
Given that the new rules will become part of MARPOL, the US's opposition will have limited direct effects. Less than 1% of the ships traveling the global seas fly the US flag. Following the formal adoption of the new rules, countries that have either explicitly or tacitly approved them will be required to transpose the new rules into their national laws and to enforce them in their national waters or in their ports. Any such enforcement activity by these countries will also catch ships flying the flags of countries that objected to the new rules (such as the United States).
Diplomats have passed a UN plan to charge ships at least $100 for every tonne of CO₂ they emit above a decarbonisation target,...
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