IMO's "Net Zero Framework" To Take Effect in 2027, Mandatory Transformation for Global Marine Diesel Engine Industry

Recently, the International Maritime Organization (IMO) confirmed that the new "Net Zero Framework" regulations will officially come into effect in March 2027 and be fully implemented from 2028. This policy, known as the "strictest shipping carbon regulation in history", will reshape the global marine diesel engine industry landscape. The core of the new regulations includes three major mechanisms: the Greenhouse Gas Intensity (GFI) standard, an economic penalty mechanism, and the principle of technological neutrality. It requires ships over 5000GT to reduce their greenhouse gas intensity from fuel year by year, and those who fail to meet the standards will need to purchase Remedial Units (RU), essentially forming the world's first shipping carbon tax system. ​

Affected by new regulations, the industry is facing dual transformations: on the one hand, old ships built before 2013 are being rapidly phased out, with about 30% of the global active fleet potentially exiting the market within five years, driving a surge in demand for compliant new ships and suitable spare parts; on the other hand, dual-fuel and zero-carbon fuel models have become mainstream in the market. The penetration rate of LNG dual-fuel marine diesel engines has increased from 9% in 2021 to 31% in 2024, and ammonia fuel models have entered the commercial pre-research stage. In 2024, China signed an agreement of intent for 23 ammonia-reserved low-speed engines. Domestic enterprises are accelerating technological iteration, with the NOx conversion efficiency of domestically produced selective catalytic reduction (SCR) systems stabilizing at 92%-95%, reaching the international advanced level and providing core support for the industry's transformation.