What is the IMO 2050 shipping decarbonisation target?

The International Maritime Organization (IMO) adopted a revised GHG strategy in 2023, targeting net-zero GHG emissions from international shipping by or around 2050. Interim targets: at least 20% reduction in GHG intensity by 2030 (striving for 30%), and at least 70% reduction by 2040 (striving for 80%), both vs 2008 baseline. The strategy requires zero or near-zero emission fuels to represent at least 5% of the energy used in international shipping by 2030, striving for 10%. These are significantly more ambitious targets than the IMO's 2018 strategy and align more closely with a 1.5°C pathway.

What is FuelEU Maritime?

FuelEU Maritime is an EU regulation (effective from 2025) that sets progressively declining greenhouse gas intensity limits for the energy used by ships calling at EU ports. Starting with a 2% GHG intensity reduction in 2025 (vs 2020 baseline), rising to 6% in 2030, 14.5% in 2035, 31% in 2040, 62% in 2045, and 80% by 2050. Ships that exceed limits must purchase 'FuelEU credits' from compliant vessels (a flexibility mechanism). FuelEU Maritime covers vessels >5,000 GT on voyages to/from EU ports and within EU waters. Combined with EU ETS inclusion of shipping (from January 2024), this creates a substantial financial incentive for EU-calling shipowners to adopt lower-carbon fuels.

What alternative fuels are shipping companies using in 2026?

In 2026, the main alternative marine fuels are: (1) LNG — most widely adopted; approximately 900+ LNG-capable ships in service globally; Maersk, CMA CGM, MSC, and others have large LNG fleets; reduces CO2 ~20–25% vs VLSFO, eliminates SOx, reduces NOx ~80%; (2) Methanol — growing rapidly; Maersk's large methanol-capable containership fleet is the leading example; green methanol still supply-constrained but grey/bio methanol being used; (3) Ammonia — zero carbon when green; several newbuilds on order for 2026–2028 delivery; safety and bunkering infrastructure challenges remain; (4) Biofuels (FAME, HVO) — drop-in blend with VLSFO or MGO; readily available but supply and sustainability questions limit scaling; (5) Battery/hybrid — for short-sea ferries; DNV estimates 30–40% of newbuild orders in 2026 are for 'future-proof' alternative fuel vessels.

Shipping Decarbonisation 2026

Published 1 October 2026 · Updated 20 October 2026

International shipping — carrying approximately 90% of global trade by volume — accounts for approximately 2.5–3% of global CO2 emissions. Decarbonising the sector is technically and economically challenging: ships have 20–25 year operational lives, operate across jurisdictions, and require fuels with very high energy density. In 2026, the combination of IMO's revised net-zero strategy, EU regulatory pressure (FuelEU Maritime, EU ETS), and pioneering fleet investments by major carriers is accelerating the transition — but zero-emission shipping at scale remains a 2030s–2040s outcome.

For current marine fuel pricing, see our bunker fuel glossary entry and our marine fuel bunker guide. For the COP process driving these targets, see our COP31 2026 event preview.

IMO revised GHG strategy 2023

The IMO's 2023 revised strategy (adopted at MEPC 80) significantly tightened the 2018 framework:

Target year	GHG intensity reduction vs 2008	Ambition level
2030	At least 20% (striving 30%)	Near-term
2040	At least 70% (striving 80%)	Medium-term
2050	Net-zero GHG	Long-term

The IMO is developing mid-term measures (MTMs) for adoption by 2025 with implementation from 2027 — likely including a global fuel standard (GFS) setting maximum GHG intensity for marine fuels, and a maritime carbon pricing mechanism (a levy or tradeable permit system). These instruments are being negotiated between the 175 IMO member states, with significant tension between large shipping nations (Greece, Japan, China) wanting flexibility and Small Island Developing States (SIDS) wanting the most ambitious targets.

FuelEU Maritime: EU's unilateral approach

While IMO negotiations continue, the EU has moved unilaterally with two complementary regulations affecting ships calling at EU ports:

FuelEU Maritime (from 2025): GHG intensity limits on ship energy use, rising progressively to 80% reduction by 2050. Covers vessels >5,000 GT. A flexibility mechanism allows surplus and deficit trading between vessels.
EU ETS shipping (from January 2024): Large ships (>5,000 GT) on EU voyages must surrender EU Allowances (EUAs) for CO2 emissions. In 2024: 40% of reported emissions; 2025: 70%; 2026+: 100%. At €60–80/tonne CO2 EUA prices, this adds approximately $30–50/tonne of VLSFO equivalent cost.

For carbon credit economics, see our carbon credit glossary entry.

Alternative marine fuels: 2026 status

Fuel	CO2 reduction vs VLSFO	Ships in service 2026 (approx.)	Key challenge
LNG	~20–25% CO2 (methane slip risk)	~900+	Methane slip; stranded asset if NH3/MeOH wins
Green methanol	~85–95% (well-to-wake)	~100+	Green supply limited; grey methanol ~10% reduction only
Green ammonia	~85–95% (well-to-wake)	~10–20 (newbuilds)	Toxicity; bunkering safety; NOx emissions if not managed
HVO/biofuel blends	~30–85% (well-to-wake, variable)	Drop-in; widespread	Sustainability certification; supply limits at scale
Battery/electric	~90–100% (if green grid)	~300+ (ferries/short sea)	Energy density limits; only viable for <200 nm routes

Maersk's dual-fuel methanol bet
A.P. Moller-Maersk made the most high-profile shipping decarbonisation investment of the early 2020s: ordering 25 large (16,000–17,000 TEU) dual-fuel methanol containerships, with deliveries 2023–2025. Methanol can be bunkered at many existing ports with modest infrastructure modifications. In 2026, Maersk's methanol fleet is operating on "green methanol" blends (bio-methanol sourced from various suppliers) — though supply remains tight and expensive (~$800–1,200/tonne vs VLSFO ~$500–600/tonne). Maersk's bet is that green methanol supply will scale and costs will fall; if ammonia ultimately prevails, its dual-fuel engines can potentially be adapted. See our marine fuel bunker guide for current bunkering economics.

Zero-emission vessel economics: the green premium challenge

The fundamental challenge for shipping decarbonisation is the "green premium" — the additional cost of zero-emission fuels vs conventional VLSFO:

Green methanol at $800–1,200/tonne vs VLSFO $500–600/tonne = ~$200–600/tonne premium (~€18–55/tonne CO2 equivalent)
Green ammonia at $1,000–1,800/tonne (energy-adjusted vs VLSFO) = significant premium until green hydrogen electrolyser costs fall below ~$2/kg H2
EU ETS at €60–80/tonne CO2 narrows the green premium for EU-calling ships — but does not close it entirely for most zero-carbon fuels
FuelEU Maritime credit prices emerging in 2025–2026 range (estimated €50–120/tonne CO2e) provide additional revenue for compliant vessels

For context on how fuel costs flow through to consumer goods prices, see our bunker fuel glossary entry. For the global refining implications of changing bunker demand, see our global refining outlook 2027.

Frequently asked questions

What is the IMO 2050 shipping decarbonisation target? IMO's revised 2023 strategy targets net-zero GHG from international shipping by or around 2050, with at least 20% GHG intensity reduction by 2030 (striving 30%) and 70% by 2040 (striving 80%), vs 2008. Zero/near-zero emission fuels must represent at least 5% of ship energy use by 2030. Mid-term measures (global fuel standard + carbon pricing) are expected from 2027.: IMO's revised 2023 strategy targets net-zero GHG from international shipping by or around 2050, with at least 20% GHG intensity reduction by 2030 (striving 30%) and 70% by 2040 (striving 80%), vs 2008. Zero/near-zero emission fuels must represent at least 5% of ship energy use by 2030. Mid-term measures (global fuel standard + carbon pricing) are expected from 2027.
What is FuelEU Maritime? FuelEU Maritime is an EU regulation (from 2025) requiring ships >5,000 GT calling at EU ports to meet progressively declining GHG intensity limits: 2% reduction in 2025, 6% in 2030, 31% in 2040, 80% in 2050 (vs 2020). Combined with EU ETS shipping inclusion (from 2024), it creates a growing carbon cost for conventional heavy fuel use on EU routes.: FuelEU Maritime is an EU regulation (from 2025) requiring ships >5,000 GT calling at EU ports to meet progressively declining GHG intensity limits: 2% reduction in 2025, 6% in 2030, 31% in 2040, 80% in 2050 (vs 2020). Combined with EU ETS shipping inclusion (from 2024), it creates a growing carbon cost for conventional heavy fuel use on EU routes.
What alternative fuels are shipping companies using in 2026? LNG (~900+ ships; 20–25% CO2 reduction) is most deployed. Green methanol (~100+ ships; Maersk leading) offers 85–95% well-to-wake reduction but green supply is limited and costly. Ammonia (first newbuilds arriving 2026–2028) faces safety/bunkering challenges. HVO biofuel blends are a near-term drop-in option. Battery ships work for ferries/short routes only.: LNG (~900+ ships; 20–25% CO2 reduction) is most deployed. Green methanol (~100+ ships; Maersk leading) offers 85–95% well-to-wake reduction but green supply is limited and costly. Ammonia (first newbuilds arriving 2026–2028) faces safety/bunkering challenges. HVO biofuel blends are a near-term drop-in option. Battery ships work for ferries/short routes only.