Panama Canal ready to start rewarding low-carbon ships

September 26, 2025, by Naida Hakirevic Prevljak

Next week, the Panama Canal will launch NetZero Slot, an initiative designed to incentivize Neopanamax vessels powered by clean fuels and equipped with energy-efficient technologies.

With this move, the Panama Canal Authority (ACP) aims to support the maritime industry’s global decarbonization goals and achieve net-zero emissions by 2050.

The weekly reservation opportunity encourages Neopanamax customers to invest in energy efficiency and adopt low-carbon fuels, as per the ACP.

“The NetZero Slot is part of the Panama Canal’s commitment to reward and incentivize investments in energy efficiency and low-carbon fuels. As the shipping industry and its value chain progresses toward net-zero emissions, we will continuously update the eligibility criteria to recognize and support these efforts,” the ACP said.

As informed, the first competition of this weekly slot will be held on October 3, 2025, for transits during the week of November 2 through November 8, 2025. To participate in the NetZero Slot competition, customers must submit their requests through the booking system, including the intended transit day of the week.

In order to participate, vessels must be registered as dual-fuel and capable of operating on at least one fuel with an approximate well-to-wake (WtW) carbon intensity of 75 gCO₂(e)/MJ or lower.

“The Panama Canal acknowledges that the availability and scalability of such fuels are still under development. Therefore, vessels will not be required to use lower-carbon fuels immediately,” the ACP explained.

Dual fuel engines such as dual LNG, dual LPG, dual methanol and dual ammonia will qualify to compete for the NetZero Slot program.

First-time transit vessels will not be eligible to compete for the NetZero slot, as they must first undergo inspection by the Panama Canal Admeasurement Unit. This inspection typically takes place upon the vessel’s initial arrival in Canal waters, prior to its maiden transit.

The NetZero Slot will not be auctioned. Instead, eligible vessels will be chosen based on the criteria including cargo condition, capacity, and economic contribution.

Currently, the International Maritime Organization (IMO) is developing the Sustainable Fuel Certification Scheme, which will certify the greenhouse gas intensity (GFI – GHG Fuel Intensity) of marine fuels. This scheme will measure the amount of greenhouse gases emitted per unit of energy used, expressed in grams of CO₂ equivalent per megajoule (gCO₂eq/MJ), and will cover the entire fuel life cycle, from production to on-board consumption, using the well-to-wake approach.

In the future, this certification will allow the waterway to verify, in a standardized way, that vessels meet the required carbon intensity to participate in programs such as the NetZero Slot.

Earlier this year, the ACP first unveiled the initiative prioritizing vessels that run on low-carbon fuels and ships fitted with energy-efficient technologies.

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In related news, the Panama Canal recently presented an ambitious ten-year roadmap designed to reinforce its strategic role in global trade, safeguard long-term sustainability, and deliver tangible benefits to the nation.

With this vision, the waterway is expected to evolve beyond an interoceanic passage and become a logistics hub, strengthening Panama’s competitive edge in world commerce.

The Panama Canal will invest more than B/. 8 million (about $7.9 million) in strategic projects that will not only create jobs for Panamanians but will also drive national economic growth. The increase in revenue derived from these initiatives will enable the canal to transfer larger annual contributions to the National Government, which will be invested in social development projects for the benefit of the population.

The Río Indio Reservoir will secure water for more than one million Panamanians and enhance the reliability of canal transits, therefore maximizing its value.

The Interoceanic Energy Corridor will include a 76-kilometer pipeline and two maritime terminals with provisions for the movement of up to 2.5 million barrels of energy products per day and linking the Atlantic and Pacific coasts without crossing the locks.

The pipeline, alone, is expected to create more than 45,000 jobs during construction and 11,000 during operations, contributing more than B/. 64 billion throughout its lifespan.

The Corozal Port, located on the east bank, will be integrated into a land-based logistics platform connected by road and rail.