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2025 June 10   09:59

IMO regulators and industry ramp up funding for net-zero shipping

The International Maritime Organization (IMO) approved new regulations for net-zero ship fuels and emissions in April, with adoption planned for October, according to IMO's release.  

“Regulations alone cannot do the job. We need technological development and we need alternative fuels… And that can only happen in one way – with investment,” said IMO Secretary‑General Arsenio Dominguez at the Blue Economy Finance Forum in Monaco on 8 June.  

Industry stakeholders are now being urged to invest in scaling up alternative fuel production to replace the 350 million tonnes of fuel oil burned by ships annually. Infrastructure upgrades at ports, including bunker facilities, are also needed to provide clean energy to vessels.

Christine Cabau‑Woehrel, Executive Vice‑President of shipping and logistics firm CMA CGM, described the shift as “a complete transformation of the shipping business,” adding that “it will be a long and difficult journey, but we want to be running in front.”  

Early adopters are already operating at least 200 container ships capable of using zero- or near-zero-emission fuels.

Nearly 80 % of new orders for container ships and vehicle carriers include hybrid fuel capability, according to the World Shipping Council.

Its President, Joe Kramek, noted that the liner industry has invested USD 150 billion in decarbonization—“unprecedented for the transport sector”—but emphasized the need for “the fuel supply… it’s a tremendous investment opportunity.”  

The IMO’s new “Net‑Zero Framework” combines a global fuel standard limiting greenhouse gas fuel intensity with a pricing mechanism for ship emissions.

The framework sends a clear signal to fuel producers and rewards early adopters through shared expertise. It builds on existing IMO measures on energy-efficient ship design, operational improvements and carbon intensity ratings, with reviews every five years and tightening limits.

Dominguez noted the regulations will apply to all international ocean-going ships regardless of their flag. He also warned that nearly 500,000 seafarers will need upskilling by 2030, and that safety protocols must be enhanced for the new fuel types.  

Dominguez called on the international community to shift from commitments to concrete action: “That is what we are going to demonstrate again in October, and we will not stop there.” He further stated, “Decarbonization has a cost. We have already spent money in polluting the environment. It is time for all of us to invest in cleaning it, and making it sustainable for future generations.” 

International Maritime Organization (IMO) is a United Nations specialized agency based in London that regulates international shipping safety, security and environmental impact. It sets mandatory regulations for member states to follow, including new net-zero petroleum fuel standards and emissions pricing starting October 2025.

World Shipping Council (WSC) is a trade association representing major ocean liner companies worldwide. It advocates for policy, regulatory, and market frameworks supporting the shipping industry's decarbonization efforts.

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