IMO Net-Zero Fund: Paving the Way to Decarbonized Shipping

The International Maritime Organization (IMO) is taking a historic step toward decarbonizing global shipping. The IMO Net-Zero Fund (NZF), expected to mobilize $10–15 billion per year starting around 2028, is designed to help the sector achieve net-zero greenhouse gas (GHG) emissions by 2050.

What is the IMO Net-Zero Fund?

The NZF framework, approved at MEPC 83 in April 2025, integrates fuel intensity targets, carbon pricing, and a dedicated funding mechanism to support the transition to low-carbon shipping technologies. Ships above 5,000 gross tonnage, responsible for 85% of sector emissions, are included under this framework.

A carbon price of $100 per tonne of CO₂e is proposed for these vessels, which will finance support for developing nations adopting green shipping technologies and infrastructure.