![]() |
Shipping faces a growing risk of being charged twice for the same emissions as EU and IMO carbon frameworks converge, according to emissions management firm EmissionLink, which is calling on regulators to provide clear, enforceable rules on how the two systems will interact.
The European Commission has committed to preventing shipping companies from facing duplicate carbon costs as the International Maritime Organization (IMO) advances its own global net-zero framework. EmissionLink says the principle is welcome, but warns that the practical reality is far more complex than the commitment implies.
The maritime sector is already operating under a crowded regulatory landscape. The EU emissions trading system (EU ETS) and FuelEU Maritime are both now in force, while the IMO is moving towards its own carbon pricing mechanism. Each framework carries a different scope, timeline, calculation methodology and commercial logic, EmissionLink notes.
A vessel trading into Europe may be exposed to all three sets of obligations simultaneously; however, EmissionLink points out that the party responsible for compliance will not always be the same under each scheme, that emissions data may not be calculated in the same way across frameworks, and that costs may not be recoverable under existing charterparty terms.
"The industry needs to know how EU and IMO obligations will be reconciled, how equivalent payments will be recognised, and what evidence shipowners will need to prove that the same tonne of emissions has not been penalised more than once," commented Philippos Ioulianou, managing director of EmissionLink. "This will determine whether carbon regulation is seen as a fair transition tool or simply another cost burden."
EmissionLink, which claims to have supported the delivery of FuelEU emissions data for more than 600 vessels, giving it direct insight into the compliance challenges faced across different vessel types and operating profiles, asserts that the risk for shipowners extends beyond paying twice for the same emissions. It also includes reporting twice, calculating twice and building parallel compliance processes — all of which increase cost, complexity and administrative burden.
"Every vessel has a different operating profile, every voyage has a regulatory consequence, and every compliance decision can affect cost exposure, penalties, pooling options, charterparty recovery and future planning," Ioulianou said. "The challenge is no longer simply submitting the right figure into the right system. It is understanding how current and future emissions schemes interact, how they affect the business, and how to avoid double penalties, duplicated processes and unnecessary costs."
EmissionLink also raised concerns about the use of revenues generated through EU ETS and FuelEU-related mechanisms. Speaking at a revent forum during Posidonia, Ioulianou argued that EU member states must set out a clear pathway for directing those funds back into maritime decarbonisation.
"These funds should be directed back into the maritime sector," he stressed. "They should not become a general revenue stream for governments. Demanding that shipping pays more while failing to invest in the infrastructure needed to make decarbonisation possible is not a transition strategy. It is taxation with a green label."
The emissions management specialist is calling for practical, transparent and enforceable rules that support compliance while helping the sector transition to lower-carbon operations.
"Shipping cannot decarbonise on promises alone," Ioulianou remarked. "The sector needs clarity, consistency and confidence that regulation will support the transition rather than simply adding cost and complexity."
|
Shipping’s fuel transition faces $9 trillion funding gap, Singapore technical talk to hear
Global merchant fleet said to be ordering alternative-fuel vessels faster than the fuels can be produced. |
|
|
|
||
|
Netherlands launches R&D phase for electric emergency towing vessels with e-methanol as backup fuel
Vessels will operate electrically wherever possible, while e-methanol will serve as fuel during emergency towing operations. |
|
|
|
||
|
KPI OceanConnect seeks marine fuel trading intern for China desk in Singapore
Bunker firm is recruiting a bilingual staff member to support its China trading operations. |
|
|
|
||
|
Shell forecasts sevenfold rise in LNG bunkering demand to 27m tonnes by 2035
Annual LNG outlook projects global demand reaching nearly 700 million tonnes per year by 2050. |
|
|
|
||
|
VPS opens Shanghai laboratory as China’s bunker market expands
Sixth laboratory added to global network, targeting faster fuel testing for customers in APAC region. |
|
|
|
||
|
Heinrich Wegener joins Global Ethanol Association
German family-owned bunker firm joins industry body to support ethanol and methanol adoption. |
|
|
|
||
|
Second MSC ultra-large LNG dual-fuel boxship enters dry dock at Zhoushan
Changhong International's Daishan Base receives 19,000-teu container vessel built for MSC. |
|
|
|
||
|
Deal signed to build four LNG-fuelled gas carriers
Quartet of 175,000-cbm LNG vessels destined for Shell charter. |
|
|
|
||
|
Changhong International launches LNG container ships and tankers for MSC and Navios
Chinese shipbuilder launches four vessels in the space of days, spanning LNG container ships and oil tankers. |
|
|
|
||
|
Norsepower and Cosco unit sign R&D agreement to advance rotor sail development
Finnish wind propulsion firm and Chinese manufacturer deepen ties with dedicated research and development pact. |
|
|
|
||
| Viking Line runs vessels on bio-LNG for Gasum's FuelEU Maritime compliance pool [News & Insights] |
| WinGD claims methanol and ammonia engines ready for commercial deployment as regulatory clarity awaited [News & Insights] |
| Furetank launches emissions trading company to capitalize on FuelEU Maritime regulation [News & Insights] |
| BIMCO adopts ETS clause for bareboat charters, delays biofuel provision [News & Insights] |
| EmissionLink completes FuelEU pooling submissions for over 600 vessels [News & Insights] |