The Second Extraordinary Session of the Marine Environment Protection Committee (MEPC/ES.2) was convened in October 2025 with a historic goal: adopting the IMO Net-Zero Framework (NZF), a cornerstone for decarbonizing global shipping.
No consensus was reached, and the session was adjourned for one year. The draft NZF proposes two major measures:
- Global Fuel Standard to reduce the GHG intensity of marine fuels and accelerate low- and zero-carbon adoption.
- Global GHG Emissions Pricing Mechanism to set a price on emissions, fund decarbonization, and incentivize compliance.
The framework seeks to translate the 2023 IMO GHG Strategy (net-zero by ~2050) into mandatory MARPOL Annex VI obligations by 2027. The progress depends on major flag states (~50% global tonnage) reaching agreement on pricing and implementation. This presents an industry challenge in balancing technical feasibility with economic fairness in global emissions pricing.
The global decarbonization policy remains delayed and uncertain, pending IMO consensus. However, the regional systems (EU, UK, Turkey, Africa, China) are advancing more quickly, creating a fragmented regulatory landscape that shipowners must navigate while awaiting global alignment.
The Indicative IMO timeline:
- 14–17 Oct 2025: MEPC ES.2 – Initial guideline consideration
- 20–24 Oct 2025: ISWG-GHG 20 – Technical discussion
- 20–24 Apr 2026: ISWG-GHG 21 – Continued GHG work
- 27 Apr–1 May 2026: MEPC 84 – Full agenda, GHG focus
- Oct 2026 (TBC): MEPC ES.2 (cont.) – Possible continuation
- 16–20 Nov 2026: MEPC 85 – Full GHG agenda
As the regulatory process unfolds, Wood Mackenzie is working to provide clients with visibility through transition energy models and carbon management tools.
