All systems go for Panama Canal’s prirority passage program for dual-fuel vessels

September 15, 2025, by Ajsa Habibic

The Panama Canal is set to implement a new category within its transit reservation system, the NetZero Slot, designed to propel maritime decarbonization and support the canal’s commitment to achieving net-zero emissions by 2050.

Illustration; Archive. Credit: Panama Canal

As announced, the first competition to allocate this slot will take place on October 3, 2025, applicable to the transit week of November 2-8, 2025.

Beginning on that date, one weekly slot will be reserved exclusively for vessels that meet low-emission criteria.

In order to participate, in this initial phase, vessels must be registered as dual-fuel and capable of operating on at least one fuel with a carbon intensity factor equal to, or less than 75 gCO₂e/MJ.

Eligible fuels include green methanol, green ammonia, bio-LNG, or bio-LPG. While immediate use of these fuels will not be required, the canal will recognize the investment and capacity to operate them once supply becomes available, the Panama Canal Authority (ACP) explained.

Instead of auctioning, the vessels will compete weekly under a prioritization scheme based on:

Cargo condition: Preference given to loaded vessels.
Panamas Canal Universal Measurement System (PCUMS) capacity: Priority awarded to higher tonnage.
Economic contribution: Combined payments from tolls, maritime services, and fees from prior transit (used as a tiebreaker).

“The NetZero Slot is an unequivocal signal of our commitment to sustainability and the competitiveness of global trade. Through this initiative, we aim to support our customers in the transition toward a low-emissions future,” said Ilya Espino de Marotta, Deputy Administrator and Chief Sustainability Officer.

Panama to incentivize low-emission shipping with new priority passage program

Authorities & Government

Meanwhile, Panama is moving full steam ahead with the development of a national plan to decarbonize its maritime sector, and has reiterated its commitment to meeting the standards set by the International Maritime Organization (IMO).

“In the next five months, we expect to have a draft action plan ready so we can begin execution as soon as possible. But we need the collaboration of many players across the industry,” Alexander De Gracia, Acting Administrator of MPA, announced during a meeting with the European Union–appointed consultant who will provide technical support for the proposal.