Watering down already weak IMO compromise will sink shipping’s climate ambition

The IMO's new Net-Zero Framework is criticized as a 'defeat for the climate' because it replaces a universal carbon levy with a hybrid fuel standard and weak carbon pricing. The author contends that the scheme will only reduce emissions by about 10% by 2030—half of the IMO's own base target—and will generate insufficient revenue ($11-12 billion annually) to support the transition to zero-emission fuels, which requires $12-24 billion per year.

• The IMO Net-Zero Framework is a hybrid system combining a greenhouse gas (GHG) fuel standard with a flexibility compliance mechanism, rather than the universal carbon levy supported by many vulnerable states.
• The framework's carbon pricing mechanism is limited; for compliant fleets, less than 15% of emissions will be priced between 2028 and 2035 using 'soft' Remedial Units (RU) at $100 per tonne of CO2eq, while non-compliant fleets pay 'hard' RUs at $380 per tonne of CO2eq.
• The scheme is projected to be insufficient in both emission reductions and revenue generation, with estimated reductions of only 10% by 2030 and annual revenues of $11-12 billion, failing to meet the $12-24 billion needed for green marine fuels and technologies.
• The agreement was weakened by the influence of biofuel-rich countries like Indonesia and Malaysia, OPEC+ countries, and a lack of ambition from the EU and its member states during negotiations with opponents such as China and Brazil.

APA

Bonnet-Cantalloube, B. (2025). Watering down already weak IMO compromise will sink shipping’s climate ambition. Carbon Market Watch. https://carbonmarketwatch.org/2025/05/15/watering-down-already-weak-imo-compromise-will-sink-shippings-climate-ambition/

Chicago

Bonnet-Cantalloube, Bastien. Watering down already weak IMO compromise will sink shipping’s climate ambition. Carbon Market Watch, 2025. https://carbonmarketwatch.org/2025/05/15/watering-down-already-weak-imo-compromise-will-sink-shippings-climate-ambition/.

Wikipedia

{{cite press release |last1=Bonnet-Cantalloube |first1=Bastien |title=Watering down already weak IMO compromise will sink shipping’s climate ambition |publisher=Carbon Market Watch |date=15 May 2025 |url=https://carbonmarketwatch.org/2025/05/15/watering-down-already-weak-imo-compromise-will-sink-shippings-climate-ambition/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{bonnetcantalloube2025watering, author = {Bonnet-Cantalloube, Bastien}, title = {{Watering down already weak IMO compromise will sink shipping’s climate ambition}}, publisher = {Carbon Market Watch}, year = {2025}, month = may, url = {https://carbonmarketwatch.org/2025/05/15/watering-down-already-weak-imo-compromise-will-sink-shippings-climate-ambition/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }