Exporters are encouraged to start familiarising themselves with the International Maritime Organisation (IMO) Net-Zero Framework, a new, legally binding plan to achieve net-zero greenhouse gas (GHG) emissions from international shipping by or around 2050.
Approved by the IMO in April 2025, the framework will introduce a mandatory global fuel standard with declining GHG intensity targets and an economic pricing mechanism for emissions, scheduled for adoption in October 2025 and entry into force in 2027. While Australia continues developing its own domestic maritime decarbonisation roadmap, this framework will apply to large ocean-going ships globally, including those servicing Australia’s grain export trade.
What the framework means
The framework applies to large ocean-going ships over 5,000 gross tonnage, covering approximately 85% of international shipping’s total CO₂ emissions. Its key goals include:
- Improving energy efficiency in new ships and reducing emissions per transport work by at least 40% by 2030 compared to 2008 levels.
- Ensuring that by 2030, at least 5% of ship energy comes from near-zero or zero-GHG fuels.
- Cutting total annual GHG emissions by 20–30% by 2030 and 70–80% by 2040, with net-zero targeted by 2050.
To achieve these targets, ships will need to calculate their annual GHG fuel intensity. with data reported annually from 2028.
Ships not meeting the emission targets will need to purchase remedial units from the IMO Net-Zero Fund. During the initial 2028–2030 compliance period, prices are set at US$100 per tonne (Tier 1) and US$380 per tonne (Tier 2) of excess emissions, with review after the first period.
What it means for Australian grain exporters
These measures represent a major shift in how international freight emissions will be managed. For grain exporters, the framework will influence freight costs, charter decisions and competitiveness across markets. GTA is continuing to monitor international regulatory developments to support members in understanding the implications and preparing for compliance as implementation approaches.
