In News:

The International Maritime Organization (IMO) has approved a draft Net-Zero Framework aimed at achieving net-zero greenhouse gas (GHG) emissions from global shipping by around 2050. This is a major milestone in aligning the maritime sector with global climate goals.

Overview of the Draft Net-Zero Framework

What is it?

The framework proposes a legally binding global mechanism to reduce GHG emissions in the maritime industry. It is the first international effort to combine sector-wide emissions caps with a carbon pricing model, setting a precedent for other global industries.

Key Features

• Legal Foundation: Introduced under Chapter 5 of MARPOL Annex VI, focusing on the prevention of air pollution from ships.
• Global Fuel Standard (GFI): Requires ships to reduce GHG intensity of fuel on a “well-to-wake” basis (i.e., accounting for emissions from fuel production to usage).
• Carbon Pricing Mechanism:
  • Ships that exceed GFI thresholds must purchase remedial credits.
  • Ships using low-GHG fuels can earn and trade surplus credits.
• IMO Net-Zero Fund:
  • Redistributes carbon revenues to support:
    • Zero-emission vessels
    • R&D and capacity building
    • Climate resilience initiatives in Small Island Developing States (SIDS) and Least Developed Countries (LDCs).
• Scope: Applies to ships over 5,000 gross tonnage (GT), covering approximately 85% of global maritime CO? emissions.
• Compliance Tools:
  • Credit trading among ships.
  • Purchase of credits through the IMO fund.
  • Credit banking for future compliance.

Significance of the Framework

• First Global Regulation of Its Kind: Introduces a unified emissions and pricing system for international shipping, transcending national boundaries.
• Promotes Technological Shift: Encourages the adoption of green fuels, carbon capture systems, and hybrid propulsion technologies.
• Supports Climate Goals: Aligns with the Paris Agreement and the IMO’s 2023 Strategy for emissions reduction.
• Equity and Justice-Based Approach: Prioritises financial and technological support to vulnerable maritime nations.
• Catalyst for Green Shipping: Expected to boost demand for ammonia, green methanol, and hydrogen-based marine fuels.