A historic turning point
The International Maritime Organization will gather in London between 14 and 17 October to confirm the Net Zero Framework, the first global carbon price ever applied to an entire sector. If approved the rules will unlock a predictable pathway toward climate neutral seaborne trade. The framework combines a fuel standard that steadily lowers permitted greenhouse gas intensity with an economic measure that rewards efficient vessels. Together the two instruments form a complete toolbox for decarbonisation that will be enforced equally on every ocean.
How the framework works
Under the proposal large ships will earn or spend so called remedial units depending on performance. Surplus units can be traded or banked, creating a financial motive for early movers while safeguarding a level playing field. Contributions for deficits flow into a Net Zero Fund that will channel revenue into research, crew training and assistance for the most climate vulnerable states.
Why it matters beyond shipping
An important but less discussed benefit is data clarity. By obliging every vessel to report fuel greenhouse gas intensity on a common scale, the framework will generate a transparent global emissions ledger. This shared dataset can accelerate private investment because financiers will finally be able to benchmark projects with confidence rather than rely on fragmented regional metrics.
What comes next
The rules are expected to enter force in 2027 after technical guidelines are finalised next year. Support already spans BRICS countries, the European Union, Panama, Singapore and several fuel exporting nations, signalling unprecedented consensus. Specialist working groups will meet immediately after the vote to refine calculation methods and governance of the Net Zero Fund. The maritime technology market is watching closely, with engine makers and fuel suppliers preparing to scale low carbon solutions as soon as demand signals arrive.
Conclusion
The forthcoming decision at IMO promises to turn climate ambition into enforceable practice. By coupling clear limits with smart incentives, the Net Zero Framework can steer a nine-tenths share of global trade toward sustainable propulsion while opening fresh opportunities for innovation and investment.