Tuesday

29-04-2025 Vol 19

ETFs React to IMO Climate Agreement: Implications of Net-Zero for Maritime and Port Industries

In April 2025, the International Maritime Organization (IMO) adopted a landmark global carbon pricing mechanism for shipping, set to take effect in 2028. This mechanism imposes a $100-per-tonne charge on CO₂ emissions exceeding specific targets, aiming for net-zero emissions by 2050.

The agreement emphasizes the crucial role of seafarers in this transition. Concurrently, the European Union (EU) has taken proactive measures by incorporating maritime transport into its Emissions Trading System (ETS) since January 2024, with plans for full coverage by 2026.

The FuelEU Maritime Regulation, effective from 2025, aims for an 80% reduction in greenhouse gas intensity from marine fuels by 2050. In collaboration with the International Transport Workers’ Federation (ITF), we applaud the introduction of this legally binding global framework aimed at reducing greenhouse gas emissions in shipping.

However, we urge the EU to carefully assess the interaction between the IMO framework and the Maritime ETS and FuelEU Maritime regulations. This evaluation is vital to prevent overlapping systems that could undermine fairness in the sector.

The IMO’s commitment to net-zero emissions by 2050 signifies a critical step towards the decarbonization of shipping—an initiative that the European Transport Workers’ Federation (ETF) and port workers have been preparing for. Conversations with the European Commission have highlighted that these international regulatory changes could have profound impacts on the EU Maritime ETS.

With a global framework emerging, it is important for the EU to reconsider the alignment of its regional policies with these new developments. Particularly for EU ports, the ETF has raised concerns regarding the current EU ETS’s potential to drive business away from EU ports due to carbon leakage.

A globally coordinated approach, such as that adopted by the IMO, could mitigate such risks, ensuring competitive fairness and enabling EU ports to be both environmentally responsible and economically sustainable. The EU must prioritize coherent interactions between its Maritime ETS and FuelEU Maritime Regulation and the IMO framework, minimizing redundant systems that could burden ports, operators, and workers.

Moreover, the launch of the IMO Net-Zero Fund and the global emissions pricing mechanism signal significant change for the maritime sector. As the industry shifts towards alternative fuels and advanced technologies, the impact on seafarers’ working lives will be substantial.

This transition needs to be equitable, with dedicated resources for training, technology transfer, and capacity building. Ensuring that all maritime workers have access to paid reskilling and opportunities to learn new skills is essential.

As investment in green and digital transitions accelerates, it is crucial that industry leaders meaningfully engage with workers in shaping this change. The ETF is committed to collaborating with social partners, governments, and industry stakeholders to facilitate a fair and inclusive transition towards a greener maritime sector.

It is vital that all workers—whether at sea or in ports—are equipped to lead this change, with their rights safeguarded, skills recognized, and voices amplified in shaping a decarbonized global shipping industry. By centering workers in this transformation, we can create a sustainable maritime sector that benefits both people and the planet.

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