IMO & Maritime Decarbonization: What It Is, Who It Affects, What’s Needed — and How Axis Green Helps

What Is the IMO Doing on Climate?

The International Maritime Organization (IMO) adopted the 2023 IMO GHG Strategy, targeting net-zero greenhouse gas (GHG) emissions from international shipping by or around 2050. It sets checkpoints to reduce total annual GHG emissions by at least 20% (striving for 30%) by 2030 and at least 70% (striving for 80%) by 2040, compared with 2008 levels.

• To achieve this, the IMO has implemented several mandatory measures:
  Energy Efficiency Existing Ship Index (EEXI): Design-based efficiency standard for existing ships, effective since 1 January 2023.
• Carbon Intensity Indicator (CII): Operational rating system (A–E) for annual carbon intensity performance, with first ratings issued in 2024 based on 2023 data.
• Ship Energy Efficiency Management Plan (SEEMP Part III): A mandatory, ship-specific three-year improvement plan to enhance CII performance.

Data reporting is collected via the IMO Data Collection System (DCS) for ships over 5,000 gross tonnage, ensuring standardised reporting and monitoring across the global fleet.

Who Does This Affect?

The IMO regulations apply to all vessels engaged in international trade above 400 GT and all ships of 5,000 GT and above under the DCS framework. Key affected groups include:

1. Shipowners and operators: Responsible for EEXI compliance, CII ratings, and SEEMP III planning.
2. Charterers and cargo owners: Their operational choices directly influence a vessel’s carbon performance and rating.
3. Financiers, insurers, and lessors: Increasingly integrate CII and emissions performance into investment and underwriting decisions.
4. Ports and fuel suppliers: Must prepare for low- and zero-emission fuels and related infrastructure.
5. Class societies and verifiers: Oversee audits, certifications, and compliance verification under IMO schemes.

What Companies Must Do Differently

1. Confirm EEXI compliance for all vessels and implement technical modifications (EPL/ShaPoLi or retrofits) where required.
2. Establish robust Monitoring, Reporting, and Verification (MRV) and DCS data management systems for accurate emissions tracking and verification.
3. Actively monitor and improve CII ratings, with SEEMP Part III setting targets and corrective actions for lower-rated vessels.
4. Model financial exposure under upcoming global fuel standards and potential IMO carbon pricing expected from 2028.
5. Develop transition plans for low- and zero-carbon fuels, including methanol, ammonia, and biofuels.
6. Update charterparty clauses to reflect CII responsibilities and embed climate strategy within governance frameworks.

Where Is the IMO Framework Going?

The IMO’s trajectory is clear: to decarbonise the maritime industry through a mix of technical, operational, and market-based measures.

• Short-term: Enforcement of EEXI, CII, and SEEMP III compliance.
• Mid-term: Adoption of a global fuel GHG-intensity standard and a market-based carbon pricing mechanism by 2028.
• Long-term: Full transition to low- and zero-GHG fuels by 2050, underpinned by global collaboration and digital MRV systems.

Future enforcement will be increasingly data-driven, linking DCS and CII scores to port state control inspections, financing conditions, and chartering preferences.

Early Mover Advantage

Companies that act now benefit by:

1. Reducing compliance costs through phased retrofits and smarter operational management.
2. Securing access to green financing and favourable charter contracts.
3. Building market advantage as preferred partners for sustainability-conscious cargo owners.
4. Avoiding future penalties and reputational risk associated with non-compliance.

How Axis Green Helps

Axis Green provides tailored advisory and data-driven solutions to help maritime companies meet and exceed IMO requirements:

1. Fleet Compliance & Readiness Assessment: Comprehensive gap analysis for EEXI, CII, and SEEMP III readiness.
2. CII Optimisation & SEEMP III Support: Real-time CII tracking, improvement planning, and compliance verification.
3. DCS Data Systems & Verification: Establish robust MRV systems aligned with IMO requirements.
4. Fuel Transition Planning: Develop strategies for integrating low- and zero-carbon fuels and securing future supply chains.
5. Scenario Modelling: Assess the financial impact of future fuel standards and carbon pricing from 2028.
6. Sourcing Permitted Credits: Support clients in sourcing and securing permitted carbon credits at lower prices in advance of offsetting requirements coming into force for the maritime sector.
7. Training & Governance: Equip teams and boards with the knowledge to align strategy, operations, and compliance.

Axis Green turns compliance into competitiveness — helping maritime leaders navigate the transition to a cleaner, smarter, and more profitable shipping future.

Final Thoughts

The maritime sector is entering an era of transformation. The IMO’s 2050 net-zero pathway is reshaping how ships are built, fuelled, and operated. By acting early, shipowners, financiers, and supply chain partners can secure both environmental leadership and commercial advantage.

Axis Green stands as your partner in maritime decarbonisation — providing insight, strategy, and verified solutions to keep you ahead of regulation and competition.