• Shipping’s new deal on global fuel emissions could raise up to $10bn per year in revenues from 2028 – but there’s a risk that the lion’s share could end up back in the pockets of highly-profitable shipping companies as a reward for early adoption of net zero technologies.

• New report sets out how funds raised must be used flexibly and liberally to support countries most affected by the impacts of climate change.

• As high a proportion of revenues as possible must support adaptation and resilience in climate vulnerable nations.

(London, Monday 30 June, 2025)

At the end of intense negotiations in April this year, the International Maritime Organization (IMO) approved a global fee on a portion of emissions from international shipping, as part of a tiered fuel standard mechanism.

A new report – A just and equitable transition for shipping – launched today by climate change NGO Opportunity Green, examines how the revenues raised from this measure could be distributed to maximise positive outcomes that support equity and justice, and offset the cost of maritime’s transition.

The measure is set out in the IMO Net-Zero Framework, a major new regulation that aims to reduce greenhouse gas (GHG) emissions from international shipping. Due to be formally adopted in October, this is projected to raise around $10bn a year in revenue from 2028.

Hailed as a historic achievement, the agreement marks a notable move towards implementing the ‘polluter pays’ principle and could set an example for other sectors lagging behind, like aviation. However, the stringency and scope of the IMO measure means that fewer emissions will be priced, and significantly less money will be raised than many had hoped.

With a considerably smaller pot now available from this agreement than many climate vulnerable countries fought for, a critical next step at the IMO is to agree how exactly the funds will be disbursed. 

As key decision makers come together this week in Sevilla, Spain, to reform financing at the 4th International Conference on Financing for Development, the question of how multilateral finance delivers equity and justice will be a critical topic for discussion. It’s imperative that the opportunities and challenges faced by international shipping and its recently approved revenue generating mechanism become a part of this broader conversation.

Funds must be used flexibly and liberally to support climate-vulnerable countries to adapt to climate change and enhance resilience, not simply redistributed as rewards for the use of Zero or Near-Zero fuels and technologies (ZNZs) to the very shipping companies who have made record profits and paid unfathomably low taxes in the past five years*.

The report demonstrates the significant and strategic needs in climate vulnerable nations that could be addressed in part via funds raised by the IMO pricing mechanism – and how the only way to guarantee a just and equitable transition is in how these funds are distributed.

Emma Fenton (they/them), Senior Director of Climate Diplomacy at Opportunity Green says:

“There’s a real risk that the bulk of the money raised from shipping’s new global emissions fee will be given back to the maritime sector as a reward mechanism – to shipping companies who have already modernised their fleets. That’s why Opportunity Green is calling for as high a proportion of revenues as possible to go to support adaptation and resilience in climate-vulnerable nations. This is the only way to enable a just and equitable transition for shipping – something that was promised in the 2023 IMO GHG strategy and must remain a priority as we move forwards.” 

The report contains four country case studies that show how different types of countries could be supported by the new IMO Net-Zero fund that will be established. The case studies also have relevance for other countries with similar geographic, social, economic or industrial profiles as the ones featured. They are: 

• Chile: relevant for other countries geographically remote from their main markets. 

• Nigeria: relevant for other oil-producing developing countries or those with untapped oil reserves. 

• Belize: relevant for other Small Island Developing States (SIDS). 

• Vietnam: relevant for other coal-dependent countries with high renewable potential. 

Olumide Idowu, a Nigerian youth campaigner and climate change activist says: 

“Nigeria’s communities are suffering from floods, desertification, and rising food insecurity. At the same time, we face significant barriers in transitioning to cleaner energy systems. The IMO Net-Zero Fund presents a unique opportunity to support conflict-sensitive adaptation and unlock our enormous potential in solar energy. We urge the international community to ensure that the revenues from shipping’s transition are used to drive a just and equitable transition in countries like ours.” 

Marcelo Mena, the Global Methane Hubs, says: 

"The IMO Framework shows that multilateralism is alive, and in the case of global shipping, a lot of progress can still be made to tackle the climate crisis. The IMO Fund could provide a much-needed long-term guarantee for Chile, a country with a huge green hydrogen production potential, to attract necessary investments in expanding this promising industry and accelerating maritime decarbonisation. Local government support for this process is key, for we need to learn to walk first before we run. Using the IMO funds for broader decarbonisation, in sectors other than shipping, could also play a key role in cutting our overall emissions in the short term." 

ENDS

Notes to editors 

A just and equitable transition for shipping: Considerations for the disbursement of revenue from the IMO Net-Zero Fund is available to download here.

One of the purposes specified for the use of revenues generated through this new measure is as a reward for the use of Zero or Nero-Zero fuels and technologies (ZNZs). There is therefore a significant risk that a large portion of revenues generated will be required to meet the reward claims of ships that use ZNZs leaving nowhere near enough revenue to ensure a just and equitable transition. This in-depth guide to the IMO’s Net-Zero Framework provides more information.

*Figures from Opportunity Green’s recent report Global shipping: mega profits, micro taxes, show that the world’s 10 biggest public shipping companies topped all-time high profits of US$300bn from 2019-2023 and paid only $30bn in tax. 

Opportunity Green is an NGO working to unlock the opportunities from tackling climate change using law, economics, and policy. We do this by amplifying diverse voices, forging ambitious collaborations and using legal innovation to motivate decision makers and achieve climate justice, with particular emphasis on the aviation and shipping industries.

Since October 2022, Opportunity Green has been working bilaterally with a number of ambitious climate vulnerable IMO Member States – working collaboratively with their London Embassies and/or capitals, towards building their capacity to actively participate in these meetings. Our work with these countries includes inter alia, developing unbiased information briefings ahead of the IMO meetings, providing ad-hoc legal and policy advice, and facilitating networking opportunities.