Shipowners: 'industry needs clarity' on IMO and regional fuel and emissions policies

Ensuring conformity between regional and international fuels and emissions regulations

On the subject of consistency between regional and international regulations covering shipping emissions and low- and zero-carbon fuels, ICS said it has responded to the EU Commission’s consultation encouraging them to replace the EU ETS with the IMO NZF as soon as it is adopted. "Clear and simple rules are essential for shipping to successfully and quickly transition to net zero," the ICS said.

And, similarly, according to the Clean Maritime Fuels Platform "Once the IMO agreement is adopted, the Commission must, as a matter of priority, initiate a simultaneous and co-ordinated review of FuelEU Maritime and EU ETS to ensure a full harmonisation with the IMO measures considering the high ambition of the IMO agreement," the letter said.

"Shipping will be the first sector to have a globally agreed binding carbon-pricing mechanism. The transition of international shipping to net zero is expected to further increase demand for renewable and low-carbon fuels at international level. Thus, the IMO measure will be an opportunity for the European energy producers to make these fuels available in the market as long as the necessary investments are made."

The Clean Maritime Fuels Platform letter claimed that building a supply chain for renewable and low-carbon fuels in Europe is a priority for EU-based fuels producers to remain competitive and noted renewable and low-carbon fuel projects face "significant uncertainties that deter public and private investment".

Among the uncertainties listed by the clean maritime fuels group were technological risks and high upfront capital requirements that disadvantage first movers, along with higher production costs of renewable and low-carbon fuels than conventional fuels.

"These factors create high financial risks and uncertainty that may be insurmountable without more tailored public support than what the current EU Hydrogen Bank and ETS Innovation Fund schemes provide," the letter said.

The lobby group said the upcoming EU fiscal package known as the Sustainable Transport Investment Plan (STIP) offered a chance to amend or reinforce its linked legislative policies. 

"We call on the Commission to develop dedicated maritime funding windows for the production, distribution and uptake of clean, safe and affordable maritime fuels to decarbonise this hard-to-abate sector in its upcoming STIP. The measures should be short-term and scaleable," the letter said.

Among other requests, the Clean Maritime Fuels Platform asked the EU Commission to include renewable and low-carbon fuels and technologies for shipping in the scope of the STIP and to use the STIP to "derisk investments" through the use of revenues from EU and national Emissions Trading System (ETS).

"A requirement to direct the national ETS revenues from shipping in the maritime sector should be introduced in EU law, as long as the shipping sector continues to pay for its emissions under the EU ETS. National ETS revenues should be invested in the uptake of clean maritime fuels and clean maritime technologies. This should result in a ramp up of manufacturing capacity in Europe," the group said.

In September 2024, at Riviera’s Maritime Decarbonisation Conference, Europe, senior IMO and EU representatives agreed that global regulations are preferable versus a patchwork of regional regulations, so long as the ambitions of both groups align.

European Commission policy officer Peter Czaga introduced the EU Commission’s position on the matter in his discussion of the FuelEU and Emissions Trading System (EU ETS) for maritime that are encapsulated within the EU’s Fit for 55 regulatory package.

"It’s true. We believe in the priority of a global (regulatory) regime," Mr Czaga said, noting that the bloc’s stance comes with imporant provisos.

"A number of categories have to be met in terms of ambition and targets… we want to be sure these regulations have teeth," he said.

Asked whether the EU would consider removing its current regulations if IMO establishes its own regulations similar to the EU ETS and Fuel EU maritime, Mr Czaga said EU policymakers priority is the IMO and creating a global regulatory instrument that is universally applied to the global shipping industry. 

Riviera’s Maritime Decarbonisation Conference, Europe will be held in Amsterdam Schipol Airport, 30 September to 1 October 2025. Click here to register your interest in this industry-leading event.