A New Era of “Net Zero Emissions” for Shipping Industry

On April 13, the International Maritime Organization (IMO) adopted amendments to the International Convention for the Prevention of Pollution from Ships (MARPOL) requiring ocean-going ships with a gross tonnage of more than 5,000 tons to achieve net-zero emissions by 2050. The new framework introduces a fuel greenhouse gas intensity standard and a global carbon pricing mechanism, and non-compliant ships will be subject to a “carbon tax”, the proceeds of which will be injected into the IMO Net Zero Fund, which will be used to support developing countries in their emissions reduction transition.