Panama Canal Opens ‘NetZero’ Transit Slot for Green Ships

The Panama Canal is launching of a dedicated transit reservation system designed specifically for low-emission vessels. The “NetZero Slot” initiative will reserve weekly transit capacity exclusively for ships meeting stringent environmental criteria, creating a clear market incentive for shipping companies investing in greener technologies.

Starting October 3, the canal will begin awarding these special transit slots, with the first implementation covering the transit week of November 2-8, 2025. Unlike the canal’s auction-based system for regular slots, the NetZero quota will be allocated through a competitive priority scheme that rewards more environmentally friendly vessels.

“The NetZero Slot is an unequivocal sign of our commitment to the sustainability and competitiveness of world trade. Through this effort, we seek to accompany our customers in the transition to a low-emission future,” said Ilya Espino de Marotta, deputy administrator and Sustainability officer of the Panama Canal.

In the initial phase, eligible vessels must be registered as dual-fuel capable and able to operate with at least one fuel whose carbon intensity factor is equal to or less than 75 gCO2e/MJ. Qualifying alternative fuels include green methanol, green ammonia, bio-LNG, or bio-LPG. While ships won’t be required to use these fuels during transit initially, the Canal is recognizing the investment and capability to use cleaner fuels once supplies become more widely available.

Vessels competing for the NetZero Slot will be evaluated based on three criteria: loaded vessels will receive preference over those in ballast; ships with greater PCUMS tonnage will be prioritized; and as a tie-breaker, previous economic contributions through tolls and services will be considered.

Ships awarded the specialized transit receive significant operational benefits, including guaranteed 24-hour transit, choice of transit date within the assigned week, Just-in-Time service inclusion, and flexibility to exchange or replace vessels with equivalent characteristics.

The initiative aligns with the Panama Canal’s commitment to achieve net-zero emissions by 2050, while also actively participating in shipping’s energy transition.

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