The International Maritime Organization (IMO) has prepared the Net-Zero Framework (NZF) for its target of net-zero emissions by around 2050. If adopted, it would be the first carbon pricing rule applied globally to an entire industry. But the decision has once again been pushed back.
What does the framework involve?
In short, two elements:
- Fuel standard: The greenhouse gas intensity of the fuel used by ships must stay below targets set for each year.
- Pricing: Ships exceeding the target pay for the difference (“remedial units”). Ships below the target earn credits.
The rule is designed to cover ships of 5,000 GT and above on international voyages.
October 2025: a one-year postponement
The framework was due to be adopted at an extraordinary MEPC session in October 2025. However, 57 member states voted to adjourn the meeting for a year and 49 voted to continue. The United States was at the centre of the opposition, submitting an impact assessment arguing the framework would impose a heavy economic burden on commercial shipping.
2026: talks continue, no agreement
- April 2026 (MEPC 84): The committee decided to set up an intersessional working group to resolve countries’ objections.
- September 2026 (London): The working group meeting (ISWG-GHG 22) ended without a new agreement. About two thirds of the countries that took the floor supported a centralised system for greenhouse gas pricing, but the details remained unresolved.
- October 2026: The schedule for the session originally expected to resume in October 2026 changed.
The new schedule
| Meeting | Date |
|---|---|
| Intersessional working group (ISWG-GHG 23) | 23–27 November 2026 |
| MEPC 85 | 30 November – 3 December 2026 |
| Resumption of the adjourned extraordinary session | 4 December 2026 (subject to discussions at MEPC 85) |
If the framework is adopted in December, it could enter into force on 1 March 2028 at the earliest under the IMO’s tacit acceptance procedure. If it is not adopted or is postponed again, the timeline will slip further.
What does it mean?
For shipowners: Fuel choices in new ship orders (LNG, methanol, ammonia-ready designs) depend on this decision. As long as uncertainty lasts, investment decisions are delayed.
For cargo owners: If the framework enters into force, the carbon cost may be passed on to freight as a surcharge, as with the EU ETS today. The difference: the EU ETS only covers voyages linked to EU ports, while the IMO framework would be global.
Link with the EU: The EU has said it would review its own ETS rules if a global rule is adopted at the IMO, so the two processes should be followed together. See our EU ETS 2026 article.
Frequently asked questions
Is the IMO Net-Zero Framework in force?
No. It was not adopted in October 2025. The adjourned session is planned to resume on 4 December 2026.
Which ships would it cover?
As designed, ships of 5,000 GT and above on international voyages.
Sources
- Xinhua: IMO to establish intersessional working group to address Net-Zero Framework concerns
- El Estrecho Digital: The negotiation of the IMO’s Net-Zero Framework ends in London without a new agreement (4 September 2026)
- Shipping and Oceans: IMO makes steady progress on the Net Zero Framework
- DNV: IMO MEPC 84 – revisiting the net-zero framework
- DNV: Decision on the IMO Net-Zero Framework delayed for one year
- IMO: The IMO Net-Zero Framework – FAQs
This article is based on sources published up to 26 October 2026.