Vietnam and the IMO Net-Zero Fund: building climate resilience and green industry

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

Vietnam faces some of the highest flood risks in the world. Meeting mitigation needs alone will require $400–520bn by 2050, yet financing flows are insufficient

The IMO Net-Zero Fund could deliver concessional finance to bridge this gap — without raising debt burdens.

Key opportunities for Vietnam

• Green shipbuilding: Upgrade Vietnam’s 2.6m DWT shipbuilding industry to produce low-emission vessels.

• Port upgrades and training: Improve port infrastructure and train seafarers, ensuring a just transition for maritime workers.

• Hydrogen production: Support Vietnam’s target of producing 10–20m tonnes annually by 2050.

• Infrastructure resilience: Invest in flood-proofing ports, roads, and energy systems to protect supply chains.

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

“Vietnam faces enormous climate risks and financing gaps. The IMO Net-Zero Fund is a unique chance to support its green transition without adding debt.”

Why is it important now?

Vietnam’s climate risks are rising even as concessional finance declines. IMO funds could unlock a predictable, steady stream of resources to accelerate the transition.