This chapter provides an overview of important international legal issues and regulatory developments affecting maritime transport and trade. Part A focuses on recent IMO developments to reduce greenhouse gas emissions from ships, notably, the agreement on draft midterm measures in line with the 2023 IMO strategy on greenhouse gas emissions. Part B explores international regulatory developments to strengthen the rights of seafarers, global key workers who operate in a challenging environment exacerbated by geopolitical tensions and supply chain instability. Part C highlights other important legal developments and initiatives.
These include the entry into force of the 2009 Hong Kong Convention for the Safe and Environmentally Sound Recycling of Ships, the preparation of the draft code on maritime autonomous surface ships (MASS) under IMO auspices, and ongoing IMO work to combat fraudulent ship registration and registries, both matters of growing global concern.
Key policy takeaways
The proposed IMO Net-Zero Framework, agreed by the Marine Environment Protection Committee in April 2025, will be considered for formal adoption as a mandatory chapter to Annex VI of the International Convention for the Prevention of Pollution from Ships (MARPOL Convention) in October 2025. Its entry into force and effective implementation could significantly advance the strategic objective of achieving net- zero greenhouse gas emissions from shipping close to 2050. Development of clear, fit-for-purpose implementation guidance will, however, be critical to assist stakeholders in understanding complex requirements and to facilitate full and effective compliance. The active engagement of all relevant stakeholders in related IMO work is therefore strongly encouraged.
Revenues generated under the Net-Zero Framework – if adopted – could make an important contribution to supporting a just energy transition and related infrastructure adaptation in developing countries, especially the least developed countries and small island developing States. Much more investment will be required, however, to decarbonize the global shipping fleet and cover the costs of onshore production and distribution of fuels, and the required port infrastructure. Private sector support for green and sustainable investments, green and sustainability- linked loans, and blended finance should therefore be promoted.
Maritime contracts would need to factor in monitoring, reporting and financial obligations for individual vessels under the Net- Zero Framework. This requires commercial parties to consider potential adjustments to their commercial transactions and contracts.
NCTAD can provide related analysis and guidance, as appropriate. Industry associations can assist in developing standard clauses to support effective implementation and facilitate appropriately balanced allocations of commercial risks and costs. Accelerated development, deployment and use of alternative fuels could considerably reduce emissions from ships and contribute to the achievement of IMO targets. But their carriage and use also pose important new risks in terms of pollution and personal injury; these need to be effectively addressed. New IMO Legal Committee work on the suitability of IMO liability and compensation regimes with respect to alternative fuels is an important first step in developing appropriate liability and compensation frameworks before such risks materialize. UNCTAD research and analytical work can assist in this process. All countries, including vulnerable coastal developing countries and small island developing States, as well as shipping industry and seafarer representatives are encouraged to engage actively in this important work. In an era marked by geopolitical tensions and supply chain disruptions, seafarers continue to face challenges, including regarding their rights to repatriation, shore leave, fair treatment and working conditions.
Strengthened efforts by Governments, intergovernmental organizations and industry stakeholders to monitor, implement and enforce existing regulatory frameworks, including the most recent amendments to the 2006 Maritime Labour Convention (MLC), will be critical to effectively protect seafarers’ rights – and to address the seafarer shortage that continues to affect the maritime industry. Accelerated collaborative efforts are needed to reduce cases of seafarer abandonment. Regular updates of contact points in the relevant ILO-IMO database and effective implementation of updated guidelines on managing abandonment cases can contribute to the resolution of cases and facilitate the repatriation of seafarers. The entry into force of the Hong Kong Convention for the Safe and Environmentally Sound Recycling of Ships on 25 June 2025 could make a major contribution to safer, more environmentally sustainable ship recycling operations. All United Nations Member States are encouraged to consider acceding to the Convention to ensure its widespread application at the international level. Important ongoing IMO work includes the preparation of a non-mandatory draft MASS code, expected to be finalized in 2026, as well as the development of non-mandatory guidelines or best practices on ship registration, initiated by the IMO Legal Committee, in part to assist in addressing fraudulent registration. A regulatory scoping exercise was also launched to develop actions to prevent unlawful operations, including substandard ships. All United Nations Member States and stakeholder representatives are strongly encouraged to actively engage in the related IMO work. UNCTAD stands ready to provide related advice and assistance.
Source: UNCTAD
