Nigeria and the IMO Net-Zero Fund: financing a just transition and stability

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 it matters

Nigeria is highly climate-vulnerable – facing floods, desertification, and food insecurity, all of which drive instability and displacement. At the same time, renewables account for only a small share of the energy mix, with gas still at 72%.

The IMO Net-Zero Fund could deliver conflict-sensitive adaptation finance and enable a large-scale shift to solar, without deepening public debt.

Key Opportunities for Nigeria

• Conflict-sensitive adaptation finance: Stabilise climate-affected regions and create enabling conditions for a clean energy transition.

• Port resilience and efficiency: Upgrade Nigeria’s critical ports to reduce shipping cost impacts and build climate resilience.

• Food security across supply chains: Invest in agriculture and distribution systems to protect communities from rising food insecurity.

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

“Nigeria is a clear example of how conflict-sensitive finance can create the enabling conditions for a just transition. The IMO Fund should help deliver that.”

Why is this important now?

Nigeria has enormous solar potential but lacks the financing to unlock it. The IMO Fund presents a unique chance to combine climate resilience with renewable energy leadership.