Global trade comes with responsibility and drawbacks

Back in 2018, the International Maritime Organization (IMO) adopted the Initial Strategy on the Reduction of GHG Emissions from Ships, establishing the first international climate targets for the industry. Building on this foundation the IMO set clear goals in 2023 in its revised GHG strategy: a minimum 20% emissions reduction by 2030, 70% by 2040 as well as transitioning to zero or near-zero emission fuels. These targets are now being translated into binding regulations under the 2025 Net-Zero Framework, with the industry trying to balance sustainability and expanding global commerce. 

However, the issue at hand goes beyond environmental concerns, it affects the core of global trade. In 2023, maritime trade volumes soared past 12 billion tonnes of cargo, UN data shows. In the UNCTAD Review of Maritime Transport of 2024 report it was also noted that the sector is projected to grow an average of 2.4% annually through 2029.

In addition, the data showed that the demand for greener, more resilient supply chains is encouraging shorter, regionally focused trade, potentially boosting intraregional maritime connections.

Even the chair you are sitting on right now was likely transported by ship. Things move around by ship because it’s the most efficient method of mass transportation. But that comes with responsibility and some drawbacks.

…told UN News Arsenio Dominguez, Secretary-General, IMO. 

As explained on a UN News article by Laura Quinones, Multimedia Producer, United Nations, although the shipping sector has been “slow” to regulate its climate impact, the 2025 framework is set to change that with two key measures:

• a global fuel standard aimed at reducing greenhouse gas intensity and;
• a pricing mechanism for ships exceeding emission thresholds.

During its 83rd session on 7-11 April 2025, the IMO Marine Environment Protection Committee (MEPC 83) approved the draft amendments to MARPOL Annex VI on the IMO net-zero framework.

Essentially, the polluting vessels will be required to purchase ‘remedial units’ or offset their excess emissions by contributing to the IMO Net-Zero Fund, while ships adopting zero or near-zero emissions technologies can earn surplus credits, incentivizing cleaner practices.

Shipowners exceeding their emissions limits can either buy credits from vessels that have performed better or invest in the fund. Additionally, certification, verification, audits and reporting processes will monitor compliance.

We work with the member States, particularly small island developing states and least developed countries, to enhance the implementation of IMO instruments. Everything gets reported to the Organization, and from there we take additional measures.

…remarked Arsenio Dominguez to UN News.