The European Commission welcomes the IMOs agreement as a crucial step towards net-zero greenhouse gas emissions from global shipping by 2050. This historic deal advances efforts to reduce the shipping industrys environmental impact globally. Although not fully aligned with the Paris Agreement goals, it lays a strong foundation for the energy transition in shipping. The EU and its Member States were instrumental in securing this deal and will continue to be involved until its adoption in October 2025 and implementation in 2027.
Aligned with the 2023 IMO Strategy, the agreement introduces a global standard to lower the GHG intensity of marine fuels, regulating the energys climate impact. This measure applies to the entire lifecycle of shipping fuels, using standardized criteria and a common certification scheme, ensuring a level playing field globally. It will prevent emissions from shifting to other sectors and encourage sustainable investments to reduce emissions globally. The EU aims to strengthen these measures over time to fulfill the 2023 IMO Strategys decarbonization pledges.
The agreement also introduces the first global pricing mechanism for emissions, alongside financial incentives, encouraging shipping companies to adopt cleaner fuels and technologies. Companies will be motivated to invest in zero- and near-zero emission marine fuels, like renewable methanol and ammonia, helping to reduce the industrys GHG footprint.
The pricing mechanism will apply to a portion of international shipping emissions from 2028, starting at USD 100 per tonne of CO2. This is expected to generate USD 11-13 billion annually, supporting the development of zero- and near-zero emission fuels. Revenues will also support a just and equitable transition, with attention to least developed countries and small island states.
Next steps
The IMO will confirm the agreement in October 2025. With negotiations concluded, countries should begin implementing the framework. The Commission will evaluate the global measures interaction with current EU maritime regulations, ensuring environmental integrity without a double burden.
Background
The IMOs 2023 strategy outlines a roadmap to reduce global shipping emissions, targeting a 20% reduction by 2030 and 70% by 2040, compared to 2008 levels, and achieving net-zero by 2050.
This agreement is a significant step towards these targets, demonstrating the international maritime communitys commitment to reducing its carbon footprint and promoting sustainable development.