Chile and the IMO Net-Zero Fund: unlocking green hydrogen leadership

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). This 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 it matters

Chile has some of the world’s highest potential for green hydrogen, powered by its abundant solar and hydro resources. But realising this opportunity requires 8x current solar and wind generation — an investment gap the IMO Net-Zero Fund could help fill.

Key opportunities for Chile

• De-risking ZNZ fuel infrastructure: Concessional IMO finance can reduce investor risk in zero-emission fuel bunkering.

• Scaling green hydrogen: Support development aligned with Chile’s Green Hydrogen Facility and overseen by CORFO.

• Adaptation programmes: Finance needed to address water stress and ensure the renewable build-out does not exacerbate local climate challenges.

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

“Chile needs predictable, concessional finance to unlock its green hydrogen potential. The IMO Fund can ensure this transition doesn’t add to public debt.”

Why is this important now?

Chile is poised to be a first mover in ZNZ fuels for shipping. The IMO Fund offers a chance to provide predictable, long-term support for decarbonisation — without adding to Chile’s public debt.