Maritime transport to have global decarbonization agreement

In a nutshell

The International Maritime Organization (IMO), a body linked to the UN, has concluded a global agreement that aims to reduce the intensity of greenhouse gas emissions from the maritime transport system every year, starting in 2028, establishing a pricing system, credits and fines in the event of non-compliance.

In more detail

On April 11, 63 member states of the International Maritime Organization (IMO), a UN body, approved a plan to reduce emissions from the shipping sector, which is responsible for 3% of the planet’s greenhouse gas (GHG) emissions. The agreement seeks to decarbonize the shipping sector by setting emission limits and a pricing system, with the possibility of trading surpluses between ships.

The agreement is only due to be formally adopted in October 2025, and will only come into force from 2028, when shipowners will be obliged to reduce the intensity of their vessels’ emissions every year, reaching 30% by 2035 and 65% by 2040 in relation to 2008 levels. To this end, a new fuel standard will have to be used, with all ships adopting a fuel mix with a reduced carbon footprint from 2028.

The measures are mandatory for large ocean-going ships with a gross volume of more than 5,000 tons. Those who fail to meet the targets will be subject to fees and fines. In the long term, the agreement aims to achieve net-zero greenhouse gas emissions from maritime transport by 2050.

In addition, two main emission reduction targets have been set with different penalties in the event of non-compliance. A softer one, which requires ships to reduce CO2 equivalent emissions by 4% by 2028 compared to 2008, a target that rises to 8% by 2030. Those who fail to comply will have to pay the IMO US$ 380 per ton of CO2eq above what is allowed. The other, stricter, target is a 17% reduction by 2008 and 21% by 2030, with a price of US$ 100 per ton above what is allowed.

In both cases, the IMO will use the resources obtained through a new Net Zero Fund for decarbonizing the maritime sector.

The agreement also establishes a system for trading emission credits, called corrective units. Under this system, ships that emit above the limits must purchase the surplus balance from ships that achieve emission reductions above the mandatory volume. In addition, there is the possibility of using surplus credits or purchasing corrective units. A global pricing mechanism for emissions will be implemented, encouraging shipping companies to use cleaner fuels and technologies, such as renewable methanol and ammonia.

The agreement was approved by 63 UN member states. It is important to note that the US has withdrawn from this discussion and has said it will take reciprocal measures against any taxes imposed on its ships if the global agreement is formally adopted.