International Maritime Organization due to make a historic decision to reduce greenhouse gas emissions in maritime transport

International Maritime Organization due to make a historic decision to reduce greenhouse gas emissions in maritime transport

The Marine Environment Protection Committee (MEPC) of the International Maritime Organization (IMO) will meet in London on 14-17 October 2025. The extraordinary session of the Committee is to decide on historic and globally binding measures to reduce greenhouse gas emissions from shipping.

In April 2025, provisional agreement was reached within the IMO on a regulatory framework that would obligate the Member States to take measures to reduce greenhouse gas emissions in maritime traffic around the world. Subject to final adoption, the regulations consist of a two-level fuel standard and contributions to be paid based on emissions above the set thresholds. The new framework is set to encourage ships to use sustainable fuels and energy sources. When implemented, the IMO Net-Zero regulation will be the first global sector-specific regulatory framework imposing an obligation to reduce emissions.

Finland finds that this global emission reduction measure will even out the imbalance in international regulation of maritime emissions and level out the competitive environment, between the EU and the rest of the world, for business and industry that depend on shipping. In case of final adoption of the negotiated solution within the IMO, Finland observes that the European Commission should assess without delay any overlap with EU law that may arise from the new emission reduction measure of the IMO and take necessary measures accordingly.

Under the new regulations, ships whose greenhouse gas fuel intensity is above the permissible annual threshold must pay for the exceeding emissions. The price to pay will correspond to the extent to which the annual threshold has been exceeded. Conversely, taking the lead will be rewarded: ships that fulfil the set requirement will earn 'surplus units'. Such units can then be transferred to other ships subject to certain conditions, or they can be banked for use over the next two calendar years or else cancelled on a voluntary basis.

New fund to support for emissions-free fuels and technologies

The collected fees would be directed to a new international fund to be established through regulation. The resources of the Fund would then be used to encourage the development and deployment of zero GHG and near-zero GHG ship fuels and technologies around the world. The mission of the Fund is to principally support the least developed countries and Small Island Developing States in their transition towards more sustainable ship fuels and other energy sources. If realised, the Fund becomes the largest climate fund in the world.

Finland believes that the revenues of the new IMO fund should be used to rapidly develop and deploy solutions that reduce emissions from maritime transport. Moreover, special circumstances, such as operating ships in ice-covered waters, must be observed in the distribution of the funds.

The goal of the IMO is to reach carbon neutrality in maritime transport by or around 2050 in a way that considers national circumstances. By 2030, greenhouse gas emissions from ships must be reduced by at least 20 per cent compared to 2008. The interim target set for 2040 is a reduction of at least 70 per cent.

Next steps

If the regulatory package is finally approved, the regulations will be further specified in rules of procedure. Finland considers it important that they take note of the safe passage of ships in ice-covered waters.

Inquiries:

Ministry of Transport and Communications:

Eero Hokkanen, Ministerial Adviser, Alternate Permanent Representative of Finland to the IMO, tel. +358 2955 0401, eero.hokkanen(at)gov.fi

Finnish Transport and Communications Agency Traficom:

Anita Mäkinen, Chief Specialist, Alternate Permanent Representative of Finland to the IMO, tel. 040 162 4592, anita.makinen(at)traficom.fi