Belize and the IMO Net-Zero Fund: financing a climate-resilient future

What is the IMO Net-Zero Fund?

The IMO Net-Zero Framework is a major new international regulation designed to reduce greenhouse gas emissions from international shipping. Due to be formally adopted in October, this is projected to raise around $10-15bn a year in revenue from 2028.

The framework’s main emissions reduction tool is a two-tier global fuel standard (GFS) that includes partial emissions pricing and rewards for ships using cleaner fuels or technologies (called ZNZs – zero or near-zero emission sources).

A dedicated IMO Net-Zero Fund will collect revenues from the emissions pricing and distribute them for several purposes, including ZNZ ‘rewards’ for ships using eligible energy sources, and for a range of purposes supportive of a just and equitable energy transition.

For a more detailed breakdown, read our in-depth guide to the IMO Net-Zero Framework. 

Why does it matter for Belize?

Belize’s climate finance needs are modest compared to the predicted revenues; just over $1.6bn over 25 years, only 16% of the Fund’s projected annual intake.

A stable IMO revenue stream could:

• Provide debt-free climate finance on highly concessional or grant terms

• Support projects with a higher risk tolerance than private investors allow

• Build resilience in ways that protect communities from climate and economic shocks

Key opportunities for Belize

• Food security and climate-resilient agriculture: Agriculture employs 11% of Belize’s workforce and supplies much of its food. Funds can strengthen local food systems and offset higher import costs from the IMO framework. 

• Infrastructural resilience: With ports located near population centres, investments in port-community connections can enhance resilience while improving trade efficiency.

Emma Fenton, Senior Director of Climate Diplomacy at Opportunity Green says:

“Small Island Developing States like Belize have a strong case for prioritisation for these funds. Belize needs a predictable, steady, and well-resourced revenue stream – and the IMO Net-Zero Fund can provide that on terms that do not increase its already high levels of public debt.”

Why is this important now?

Without intervention, much of the IMO Fund may go back to shipping companies already benefitting from record profits. Opportunity Green’s report A just and equitable transition for shipping, examines how the revenues raised from this measure could be distributed to countries like Belize to maximise positive outcomes that support equity and justice, and offset the cost of maritime’s transition.