What is the IMO Net-Zero Framework?

Definition: What is the IMO Net-Zero Framework?

The IMO Net-Zero Framework is the legally binding set of measures under development by the IMO’s Marine Environment Protection Committee (MEPC) to implement the 2023 IMO GHG Strategy. It combines a goal-based fuel standard (the IMO Fuel Standard) with a GHG emissions pricing mechanism, both founded on a Well-to-Wake Life Cycle Assessment (LCA) of marine fuels.

Approved in principle at MEPC 83 (April 2025) for formal adoption one year later, the framework was postponed in October 2025 and is now expected to be adopted at MEPC 85 (October 2026), with application phased from 2027.

The two pillars of the framework

IMO Fuel Standard — GHG Fuel Intensity (GFI). Every ship over 5,000 GT on international voyages must meet a declining annual GHG intensity limit (g CO2-eq/MJ, Well-to-Wake). Intensity is calculated per fuel type using IMO default factors or approved actual values.
Emissions pricing / reward mechanism. Ships that exceed the annual limit must purchase remedial units; ships that beat the limit earn tradeable credits. A remedial-unit fund supports global decarbonisation, just transition, and low-emission fuel development.

Targets for 2030, 2040 and 2050

The underlying 2023 IMO GHG Strategy sets:

Net-zero GHG emissions by or around 2050.
Reduce total annual GHG emissions from international shipping by at least 20%, striving for 30%, by 2030 compared to 2008.
By 2040, at least 70%, striving for 80%, reduction.
At least 5–10% of the energy used by international shipping by 2030 should come from zero- or near-zero GHG emission technologies, fuels and energy sources.

Well-to-Wake LCA — the backbone

The GFI metric is a Well-to-Wake figure: it counts upstream emissions (extraction, processing, transport of the fuel) plus downstream emissions (combustion on board). That makes LCA capability strategic.

Our VS Life Cycle Assessment platform produces ISO 14040/14044-aligned Well-to-Wake values that feed both the IMO GFI and the FuelEU Maritime compliance balance — a single data set, two regimes.

How does the Net-Zero Framework interact with FuelEU Maritime, CII and EU ETS?

FuelEU Maritime (EU Regulation 2023/1805) is also Well-to-Wake and already in force from 1 January 2025. Shipowners that already report under FuelEU need only additional IMO-specific defaults to prepare for the Net-Zero Framework.
CII (Carbon Intensity Indicator) is a Tank-to-Wake operational metric. Under MEPC 84 Phase 2 review it may continue alongside the Net-Zero Framework until at least 2030.
EU ETS for shipping already prices CO2 emissions inside EU/EEA voyages. The IMO pricing mechanism will complement, not duplicate, EU ETS — subject to EU alignment after IMO adoption.

What shipowners should prepare in 2026

Build the LCA data spine now. Start Well-to-Wake bunker reporting against ISO 14040/14044 so 2027 compliance is a query, not a project.
Scenario-model the GFI line. The 2027 baseline will be set by MEPC. Use our FuelEU Balance Calculator to approximate IMO GFI scenarios.
Align ESG and CSRD reporting. CSRD Omnibus I (Directive 2026/470) still requires Scope 1–3 GHG accounting; the Net-Zero Framework accelerates this. See our ESG & CSRD solution.
Watch MEPC 84 for guidelines. Read What is MEPC 84? for the expected outcomes.

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Frequently Asked Questions

When will the IMO Net-Zero Framework be adopted?

Expected adoption at MEPC 85 in October 2026, following one year of postponement. Binding application is phased from 2027.

Which ships are in scope?

International-trading ships of 5,000 GT and above, broadly aligned with the IMO DCS scope that already reports fuel oil consumption data under MARPOL Annex VI.

Is the Net-Zero Framework the same as FuelEU Maritime?

No, but they rhyme. Both use Well-to-Wake GHG intensity. FuelEU is EU-scope only, already in force from 2025. The IMO framework is global and is expected to apply from 2027.

What happens if my ship exceeds the GFI limit?

It must acquire remedial units through the reward mechanism. The cost of the units and the price-setting methodology are subject to MEPC agreement.

Will ammonia, methanol and biofuels count as compliant?

Yes, but only against their actual Well-to-Wake GHG intensity. A low Tank-to-Wake fuel produced with high upstream emissions may not beat a conventional baseline. This is why LCA is the backbone of the framework.