Associates Afzaal Abidi and Alexander Lee wrote an article for Global Trade Magazine that examines the International Maritime Organization’s newly approved Net-Zero Framework, which amends MARPOL Annex VI to mandate phased emissions reductions for large ships starting in 2028.

The framework introduces tradable “Surplus Units,” paid “Remedial Units,” and an IMO Net-Zero Fund to incentivize low-emission fuels and technologies, while also supporting developing countries. Although it provides long-awaited regulatory clarity and opportunities for early adopters, the authors note concerns that reliance on LNG and first-generation biofuels may undermine long-term climate goals and fall short of aligning with the 1.5°C pathway.

To read the full article, please click here.