The IMO approved its Net-zero Framework. Now what?
By on June 26, 2025
This month, we have issued a call to action to the IMO, its member states, and participating organizations. This is a unified message from the ammonia energy industry, responding to MEPC 83 and outlining what we need from the MEPC in October of this year.
There’s a lot of complexity flowing from the Net-zero Framework, but the message is simple: let’s adopt it in October.
Click to read. Ammonia Energy Association, Industry Takeaways from MEPC-83, June 2025.
The IMO’s Net-zero Framework
In April, the International Maritime Organization (IMO) approved its “Net-zero Framework,” creating a global fuel standard and emission pricing scheme designed to drive the decarbonization of the maritime sector. Since then, a huge amount of analysis and opinion has been published, digging into the details of that framework. Some voices were surprised: they had expected the vote to fail and the framework to fall apart. Other voices were unsatisfied: they pointed out that the IMO’s framework falls short of reaching its own GHG reduction targets and doesn’t meet its ambitions to ensure an equitable transition.
So, what should we do now? The consensus that has emerged from across the ammonia energy industry carries a very simple message for the IMO: adopt.
Adopting the Net-zero Framework in October 2025
The framework might not be perfect, but it is good. Now, we need to know that these regulations will be implemented on schedule, because this will provide industry with the confidence to invest.
How does a Net-zero Framework get adopted? That requires acceptance (perhaps by another vote) by two-thirds of the 108 parties to MARPOL Annex VI, representing at least 50% of the gross tonnage of the world’s merchant fleet. Now is the time for those in the ammonia energy industry to make this message clear to those member states.
Call to action
You can join this call to action now by downloading and disseminating our published Industry Takeaways from MEPC-83, or by sharing and amplifying our recent LinkedIn post.
Developing an industry consensus
In May 2025, the Ammonia Energy Association (AEA) and Air Products hosted a roundtable on the sidelines of the World Hydrogen Summit in Rotterdam to discuss how to accelerate maritime decarbonization. Participants from across the full value chain of ammonia energy, including producers, infrastructure operators, fuel consumers, and trade associations joined in a conversation with representatives from the IMO, national regulators, and port authorities, to share views on how future fuels – with a focus on ammonia – can scale through regulation, investment, and collaboration.
The roundtable was held under the Chatham House rule, and the conversation covered topics including industry’s role in demonstrating ammonia as a maritime fuel, investment and financing mechanisms, barriers to adoption, and partnerships that would facilitate progress. While the participants voiced many perspectives, a broad consensus emerged regarding the outcomes of MEPC-83 and the remaining regulatory steps needed to accelerate maritime decarbonization and close the price-gap between conventional fuels and zero and near zero GHG fuels (ZNZs).
Key Industry Messages to Member States of the IMO:
1. It is critical that the Net-zero Framework is adopted at MEPC-ES2 in October 2025
The Net-zero Framework is a good step in the right direction. Its adoption in October is critical to establish the business case for clean ammonia and other ZNZs to be adopted as maritime fuels. Adoption of this framework will not only drive progress on climate goals but also support broader economic growth.
2. The remaining details of the Net-zero Framework must be finalized swiftly and on schedule, starting with the approval of detailed implementation guidelines at MEPC-84 in Spring 2026
The Net-zero Framework lacks definition for key elements that can make or break investments in ZNZs like ammonia. These elements include, among others, the methodology for the calculation of GHG fuel intensity (GFI), the definition of a ZNZ, the process for recognition of certification schemes, the price of Remedial Units beyond 2030, and the governing provisions of the Net-Zero Fund.
First movers are demonstrating technologies today, but sector-wide commercial adoption will require long-term regulatory mechanisms to be in place and well understood. The regulatory signal must be predictable, with details defined, approved, and entering into force on schedule.
Pragmatic rule-making can enable significant adoption of ZNZs in the near-term, based on supply from clean ammonia production plants that are already post-FID (financial investment decision). Higher pricing of penalties and/or rewards will accelerate adoption of ZNZs in the near term and will be necessary to close the cost-gap in the longer term.
3. Markets will solve the technical, operational, and strategic challenges once regulations establish the business case
Technical, safety, and operational uncertainties that exist around ZNZs should not delay the regulatory process. Work on these issues is underway and market players have already demonstrated solutions, including class approvals, engine commercialization, vessel launches, bunkering pilots, and shipyard manufacturing. Markets can continue to solve these challenges at scale once regulations establish the rules under which industry must operate.
The roundtable was co-hosted by the Ammonia Energy Association and Air Products. Other participants included A.P. Moller – Maersk, Adani New Industries, Ammonia Europe, Atlas Agro, CF Industries, Chane Terminals, Chevron, Federal Public Service Mobility & Transport of Belgium, Hydrogen Council, International Maritime Organization (IMO), Maersk Mc-Kinney Moller Center for Zero Carbon Shipping (MMMCZCS), Maritime and Port Authority of Singapore, Ministry of Infrastructure and Water Management of the Netherlands, Port of Antwerp-Bruges, Port of Rotterdam, Topsoe, Victrol, and Yara Clean Ammonia.
Background: the Marine Environment Protection Committee (MEPC)
The IMO’s Marine Environment Protection Committee approved draft amendments to MARPOL Annex VI during its 83rd session (MEPC-83) in April 2025. These amendments are set to be formally adopted at an Extraordinary Session (MEPC-ES2) in October 2025 before entry into force in 2027, and will set a mandatory marine fuel standard and GHG emissions pricing for large ocean-going ships over 5,000 gross tonnage, which emit 85% of the total CO2 emissions from international shipping. Adoption of the Net-zero Framework will require acceptance by two-thirds of the 108 parties to MARPOL Annex VI, representing at least 50% of the gross tonnage of the world’s merchant fleet.