PORT OF SPAIN, Trinidad, CMC – More than 100 members of the International Maritime Organization (IMO), including 10 from the Caribbean Community (CARICOM), will vote later this month on whether or not to support a Net-Zero Shipping Framework (NZF) aimed at reducing emissions in the maritime sector.
The measure, which was approved in April 2025, is scheduled for adoption in October 2025, during the Marine Environmental Protection Committee meeting, which takes place from October 1 to 17.
Officials say 108 members are eligible to vote, including 10 from CARICOM, and if adopted, the measure will take effect in 2028.
The Framework aims to reduce greenhouse gas (GHG) emissions from international shipping in line with the 2050 net-zero target. Key components include a Global Fuel Standard (GFS) that sets annual GHG intensity reduction targets, a two-tier carbon price mechanism, and a credit trading system funded by penalties to reward zero- and near-zero-emission fuels and support a just transition.
The NZF presents a new regulatory era in which ships will be required to gradually adopt fuels that are typically three to four times more expensive compared with conventional fossil fuels. Given the long lifespan of ships, shipowners should prepare now for the new net-zero GHG emission regulations to ensure cost-effective compliance, both at the boat and the fleet level.
The Framework will apply to all oceangoing ships with a gross tonnage (GT) of over 5,000. These ships are responsible for over 85 percent of global shipping emissions and are already subject to reporting requirements for fuel data collection. Ships under 5,000 GT are currently not covered.
The Energy Chamber of Trinidad and Tobago stated that if adopted, the new policy would create opportunities for Trinidad and Tobago and other Caribbean countries to seek new markets for petrochemical products produced domestically.
“Essentially, the NZF encourages the use of cleaner fuels or technologies. If a ship’s GHG fuel intensity is too high, it will pay a price corresponding to the greenhouse gases it emits above certain thresholds. Conversely, ships will be rewarded for using cleaner fuels,” the chamber said.
It stated that methanol, ammonia, and LNG can be used as maritime fuels under this Framework, as they emit less carbon dioxide when consumed than traditional diesel or heavy fuel oil. This provides opportunities for producers here, and it also opens up the possibility for low-carbon fuel bunkering.
These fuels, however, are typically three to four times more expensive today, but will reduce over time with increased production and lower technology costs.
“Some countries in the Caribbean are concerned that the NZF will significantly push up their shipping costs, which are obviously a very significant issue for small island states,” it added.
The Methanol Institute has recently stated that “methanol producers are ready to deliver. Today, there is already enough methanol available to fuel the ships in operation. More than 250 projects for low-carbon, bio-, and e-methanol are under development worldwide, with significant new volumes expected to come online by 2027–2028”.
The Methanol Institute estimates that between seven and 14 million tonnes of renewable and low-carbon methanol could be available globally by 2030.
The Ammonia Energy Association has also weighed in, saying that 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 clean fuels to be adopted as maritime fuels. Adoption of this Framework will not only drive progress on climate goals but also support broader economic growth.”
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