Late 2025 saw notable developments for the maritime sector regarding environmental regulations, particularly with respect to greenhouse gas emission reduction efforts at the International Maritime Organization (IMO). Although progress had been made early on during 2025, geopolitical tensions led to postponements compromising industry plans for reaching net-zero goals by 2050.
IMO Postpones Adoption of Net Zero Framework
In April 2025, the International Maritime Organization Marine Environment Protection Committee unanimously approved the Net-Zero Framework (NZF). This comprehensive plan features a global fuel standard with annual GHG emission reduction targets through 2035 as well as a credit trading system; those exceeding limits would face penalties while compliant vessels could sell credits, further incentivizing more sustainable fuel options.
At an International Maritime Organization meeting held from October 14-17 in London, voting on mandatory NZF adoption was postponed until October 2026 due to opposition from President Trump's Administration, who has labeled it as an international carbon tax while threatening sanctions, visa restrictions, port fees and investigations against supporters. He also publicly expressed outrage against it via Truth Social; his statement marked a dramatic reversal in US climate policy.
China, Brazil, Britain and Europe remain staunch backers despite US pressure, with 63 states expected to support it. Meanwhile, opponents such as Saudi Arabia, Russia and UAE cited potential economic and food security risks while industry voices such as International Chamber of Shipping Secretary General Thomas A. Kazakos highlighted the need for regulatory clarity that will facilitate decarbonization investments.
EU to Simplify Reporting on Sustainability Initiatives
On November 13, 2025, the European Parliament adopted measures to streamline the Corporate Sustainability Reporting Directive (CSRD), EU Taxonomy, and Corporate Sustainability Due Diligence Directive (CSDDD). These changes postpone reporting of large firms (1750 employees and EUR450 million turnover) until 2028 under CSRD reporting requirements; small EU firms under narrow scope reporting will continue.
CSDDD implementation for large companies will move back to July 2028, while due diligence rules are due by July 2026 using a risk-based approach focused on direct partners and actual risks, evaluated every four years. Member states still retain options for national civil liability laws that could impact maritime operators supply chains within EU supply chains.
New IMO CII Guidelines Require SEEMP Updates
Lloyds Register recently provided guidance regarding new International Maritime Organization Carbon Intensity Indicator (IMO CII) reduction factors, requiring ships to revise their Ship Energy Efficiency Management Plan Part III by December 31, 2025 in line with ongoing efforts to increase operational efficiencies and decrease emissions across global fleets.
These guidelines support IMO commitments of reaching net-zero emission by 2050, providing vessel operators with tools that help meet shifting reduction targets while accounting for NZF uncertainties.
Broader Context and Industry Emissions
Shipping accounts for roughly three percent of global greenhouse gas emissions, producing one billion metric tons of CO2 every year and estimated to increase to 10 percent by 2050 without intervention. Vessels over 5,000 gross tonnes contribute 85%, compounded with pollutants like black carbon and sulphur oxides from heavy fuels that emit an additional two billion tonnes.
Transport & Environment remains hopeful despite US opposition, noting industry's desire for cleaner waters despite US opposition. Meanwhile, ongoing IMO refinements to pricing and timing remain active, in addition to regional actions like EU simplifications and California regulatory delays under SB 253/261 to Q1 2026.
These events emphasize the difficulty of aligning global maritime decarbonization efforts amid diverse national interests, with stakeholders waiting for results of 2026 for investment decisions.