A just and equitable transition for shipping  

Now that the International Maritime Organization (IMO) has set out its IMO Net-Zero Framework, the next step is agreeing where the revenues from its associated fund – the IMO Net Zero Fund – will go.

Shipping’s new agreement is a major new regulation that aims to reduce greenhouse gas (GHG) emissions from international shipping. It 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.

Our new report – A just and equitable transition for shipping – 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.

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.

What’s covered in the report?

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.

It 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. 

Download the report in full below.