MEPC 82 brings net-zero framework closer to reality as crucial 2025 session approaches

Following the conclusion of the 82nd session of the IMO Marine Environment Protection Committee (MEPC 82), the progress made toward finalizing the net-zero framework, set for approval at the ‘critical’ MEPC 83 meeting in April next year, appears to be ‘on track’ as the maritime industry continues its efforts to curb harmful pollutant emissions.

Held from September 30 to October 4, 2024, in London, the MEPC 82 session sought to advance global efforts to reduce the environmental impact of shipping by addressing key issues like greenhouse gas emissions, air pollution, marine plastic litter, and underwater noise while working toward the implementation of the net-zero framework, aimed at achieving net-zero GHG emissions by or around 2050.

The “IMO net-zero framework” draft outline was agreed upon at MEPC 81 earlier this year. It listed regulations under the International Convention for the Prevention of Pollution from Ships (MARPOL), which would be adopted or amended to allow for a new global fuel standard as well as a universal price mechanism for maritime GHG emissions, such as a levy as a separate measure.

Furthermore, during the session, member countries agreed that the end goal of a revised short-term GHG measure should be achieving the targets of the 2023 IMO GHG strategy, including the reduction of CO2 emissions per transport work by at least 40% by the year 2030, compared to 2008 standards.

During MEPC 82, member countries adopted amendments to MARPOL Annex VI that give effect to both draft emissions control areas (ECA) in the Canadian Arctic and Norwegian Sea.

The control areas, which were approved at MEPC 81, were envisioned as a layer of additional protection from air emissions in the Canadian Arctic waters and the Norwegian Sea by minimizing emissions of sulfur oxides (SOx), particulate matter as well as nitrogen oxides (NOx) from international shipping.

The proposal for the areas was submitted by Canada and Norway and received support from numerous organizations, such as the Clean Arctic Alliance which not only voiced support for the designation of the ECA but also called for IMO to also adopt an underwater noise action plan at the next session.

As the MEPC 82 summary report by UK-based classification society Lloyd’s Register reiterates, the amendments to the MARPOL Annex VI to establish the control areas will require ships operating in the regions to comply with stricter regulations for NOx, and SOx—the emissions of which should not exceed 0.10%—with compliance deadlines set for March 2026 and March 2027, respectively.

The final adoption of these amendments is expected at the October 2025 extraordinary session of MEPC to ‘overcome timing issues’ in publishing a revised MARPOL Annex VI that could happen if they were adopted at MEPC 83 in April 2025.

The ICS has shared optimism regarding the progress achieved on crafting a base text for amendments to the MARPOL treaty at MEPC 82 but has cautioned that additional efforts might be needed from governments to refine the regulatory details before it can be finalized.

In August this year, the ICS, alongside the governments of the Bahamas and Liberia, submitted an annual greenhouse gas (GHG) emission fee proposal to IMO, centered around a GHG fee charged to ships per ton of CO2 emitted, projected to aid the shipping industry reach IMO’s net-zero targets ‘more smoothly.’

Side-by-side, there would be a ‘feebate’ mechanism to prompt an ‘accelerated’ production and uptake of alternative fuels like green ammonia, hydrogen and methanol, eco-friendly biofuels, and new technologies, such as on-board carbon capture.

Moreover, the ICS has emphasized the importance of a reward mechanism for those companies that lead the transition to zero and near-zero GHG technologies. The proposition includes incentives for first movers, helping to bridge the financial gap between traditional fuel sources and greener alternatives.

To this end, the trade association suggested the creation of an IMO fund that could support developing nations in reaching a ‘just and equitable’ transition to low-carbon shipping.

With the net-zero framework scheduled for approval next year, and the fact that the measures must be put into effect in 2027, the ICS has pointed out that the next six months could be ‘critical’ for fine-tuning the final details of the regulatory measures. The association believes that the success of these endeavors will largely depend on ‘continued dialogue’ and ‘consensus-building’ among the member states.

Several pivotal issues regarding the CII were defined during the session. As the report by Lloyd’s Register stresses, the current framework has been found to not allow for the individual ship-based assessment of operational energy efficiency performance and that the CII calculation could penalize – among other factors – idle time, port waiting times, short voyages, cruise passenger ships with substantial time in ports, ships that use generous amounts of energy to load or unload, and similar.

The CII’s reduction factor for the years 2027-2030 was also concluded as ‘undefined’. Member countries agreed that some of the gaps could be addressed before January 1, 2026, as part of the first work phase in the review while some others may be extended beyond that date, in a second phase.

Over the years, many companies have come forward with suggestions to revise the current CII. In fact, international associations such as BIMCO, Cruise Lines International Association (CLIA), INTERCARGO, InterManager, International Chamber of Shipping (ICS), and INTERTANKO shared a policy statement regarding CII, calling for the reappraisal of the indicator, its shortcomings, and areas for improvement at the MEPC 82.

Building on this initiative, in September this year, INTERCARGO reaffirmed the need for member countries to ‘reassess and adjust’ the CII to better reflect a vessel’s energy efficiency (rather than that of a port of other factors beyond the ship’s control) and implement a system that would further incentivize GHG emissions reduction.

Still, given the volume of work and proposals, MEPC ended up establishing a ‘correspondence group’ to report to MEPC 83 in April 2025 on the review of the short-term GHG reduction measure.

The group has reportedly been instructed to consider all possible options to address the challenges and gaps, and then develop draft amendments to existing instruments, or develop new instruments.