Attained GHG (2028)
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Total Fuel Cost (2028)
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RUs Cost (2028)
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*Tier 0 means the vessels Attained GFI is lower than the direct compliance value.
Navigating the Future: Key Insights on IMO 2028 GFI Standards
The IMO GFI Standards refer to the Greenhouse Gas Fuel Intensity (GFI)-based measure adopted by the International Maritime Organization (IMO) to reduce greenhouse gas (GHG) emissions from international shipping. This measure was approved at the Marine Environment Protection Committee (MEPC) 83 session in April 2025 and is part of the IMO’s broader Net-Zero Framework aimed at achieving net-zero emissions from international shipping by around 2050.
Key Features of IMO GFI Standards:
- Applicability: The GFI standards apply to ships above 5,000 gross tonnage (GT) engaged in international voyages.
- Objective: The measure requires ships to progressively reduce the GHG intensity of the fuels they use, measured in grams of CO₂ equivalent per megajoule (gCO₂eq/MJ) of energy. This encourages adoption of low-carbon and zero-carbon fuels such as green hydrogen, ammonia, and methanol.
Two-tier Compliance Targets:
- Base Target (BT): A minimum performance level aiming for a 4% reduction in GFI by 2028 and 30% by 2035 compared to 2008 reference levels.
- Direct Compliance Target (DT): A more ambitious target aiming for 17% reduction by 2028 and 43% by 2035.
Compliance Mechanism:
- Ships must annually calculate their attained GFI and compare it to these targets.
- Ships that fail to meet the Base Target must purchase Tier 2 remedial units priced at $380 per tonne of CO₂ equivalent emissions above the target.
- Ships that meet the Base Target but fail the Direct Compliance Target must purchase Tier 1 remedial units priced at $100 per tonne.
- Ships that outperform the Direct Compliance Target earn surplus units, which can be banked, traded, or used to offset other ships’ deficits.
GHG Pricing and Incentives: This performance-based system differs from a flat carbon levy by rewarding efficient ships and early adopters of green fuels, while penalizing those with higher emissions intensity. Revenues from remedial units contribute to the IMO Net-Zero Fund, which supports research, technology innovation, and equitable transition efforts, especially for developing countries and vulnerable states.
Implementation Timeline:
The regulation is expected to enter into force by March 2027, following formal adoption at an Extraordinary MEPC session in October 2025 and a 10-month deemed acceptance period.
- By 2027, ships must open accounts in the IMO GFI Registry, update their Ship Energy Efficiency Management Plans (SEEMP), and begin data collection.
- Annual reporting, verification, and compliance activities will commence from 2028 onward.