A sweeping mid-year analysis by the Global CCS Institute unveils a world in regulatory flux, as carbon capture and storage (CCS) policy advances unevenly across jurisdictions.
The Institute’s mid-year Policy, Legal and Regulatory Review details major legislative trends, rising geopolitical interest in decarbonization, and the maritime sector’s impending transformation.
Regulatory Momentum Builds Around CCS
Over the past six months, CCS regulation has gained traction, albeit unevenly. Europe led with new frameworks such as the Carbon Removals and Carbon Farming Regulation, alongside large-scale funding under the Clean Industrial Deal. In the U.S., federal uncertainty loomed due to paused IRA disbursements (but have been largely preserved in news that developed after the review was published), yet state-level initiatives are thriving, with Wyoming, Arkansas, and Utah pushing forward Class VI well primacy and long-term CO2 storage oversight.
Brazil launched its regulated carbon market (SBCE), while Indonesia debuted a national carbon exchange platform. Meanwhile, China’s ministries issued multi-sector CCS guidance, and Japan identified its first offshore CCS zone. In the Middle East, ADNOC received the region’s first CO2 storage certification, and Qatar announced a 37-million-tonne CO2 reduction plan by 2030. These developments point to a global push toward standardized regulation, cross-border CO2 transport, and integrated CCS infrastructure.
IMO’s Net-Zero Framework: Carbon Limits for the Seas
In a landmark move, the International Maritime Organization (IMO) adopted a legally binding Net-Zero Framework in April 2025, marking the first global emissions regime tailored to a specific industry. The framework targets a 70–80% cut in maritime greenhouse gas emissions by 2040, en route to net-zero by 2050.
Key elements include a Global Fuel Intensity (GFI) standard, carbon pricing, and a trading system. Ships exceeding emission thresholds must buy offset credits at prices up to $380 per tonne CO2e, while compliant vessels can sell “surplus units.”
A Net-Zero Fund, expected to raise $11–13 billion annually, will finance low-emission innovation and support developing nations in maritime decarbonization.
Shipping Sector Faces a Sea Change
Industry players are preparing for seismic changes. From onboard carbon capture systems (OCCS) to low-emission fuels, companies investing early may secure operational and financial advantages. Projects like EverLoNG and REMARCCABLE are piloting OCCS technologies, while ports are being urged to develop infrastructure for new fuels.
While final design elements—such as pricing mechanisms and post-2035 targets—remain pending, the IMO’s regulations, set for full implementation in 2027, are already shifting fleet strategies and investment flows. According to the Global CCS Institute, shipping’s decarbonization has begun not with rhetoric, but with law.
