- IMO and EU Climate Policies Risk Costly Duplication for Shipowners.
- EmissionLink Warns of Conflicting Demands in Decarbonization Push.
- Double Reporting Could Burden Operators with Redundant Costs.
The global shipping industry is under increasing pressure from overlapping climate regulations, which raises concerns about duplicated efforts and rising costs, as noted by Philippos Ioulianou, Managing Director of EmissionLink and part of the Columbia Group, reports AJOT.
Conflicting Demands Undermine Aligned Objectives
With the International Maritime Organisation (IMO) set to implement its net-zero targets starting in 2027, and the European Union’s FuelEU Maritime regulation already in motion, shipowners are struggling to navigate through differing policy frameworks and timelines.
“On paper, the objectives are aligned. In practice, shipowners are being pulled in different directions with conflicting demands,” said Mr. Ioulianou. “They are being asked to invest in reporting systems, new fuels, and compliance capacity, often without the necessary infrastructure or clarity on which technologies will prevail.”
Double Reporting and Financial Strain
One major issue at hand is the risk of double reporting. Companies are required to submit similar emissions data in various formats to meet the demands of both the IMO and EU systems.
“If IMO’s system comes into force in 2027 while FuelEU is already active, we risk at least two years of duplicated monitoring, verification, and penalties. This is not only inefficient — it’s costly,” he explained. “Every euro spent on parallel compliance structures gets passed down the value chain to charterers, cargo owners, and ultimately consumers.”
EmissionLink Calls for Global Harmonisation
EmissionLink is calling on regulatory bodies to align international and regional compliance processes. The company is pushing for the mutual recognition of verified emissions data and the creation of a unified submission platform to make compliance easier.
“We fully support the drive to decarbonise,” Mr. Ioulianou adds. “But regulation must reflect operational realities. Most vessels on the water today will still be trading in 10 to 15 years. Engine conversions to gas, methanol or ammonia are expensive, and global bunkering infrastructure isn’t yet mature enough to support consistent fuel availability.”
Fuel-Only Focus Risks Overlooking Broader Innovation
Mr. Ioulianou also cautioned against a narrow focus on dual-fuel capabilities as the sole solution for compliance. “There are technologies that can reduce emissions today,” he said. “But if regulation only incentivises dual-fuel capability, we risk stifling innovation in other critical areas.”
Compliance as a Strategic Advantage
EmissionLink points out that by providing sustainability reporting, planning for retrofits, and offering guidance on fuel strategies, companies can set themselves apart in a market that’s constantly evolving. “These companies will stand out, and the industry must evolve. Competing purely on cost is no longer viable.”
Final Call for Clarity
In closing, Mr. Ioulianou emphasised the urgent need for regulatory alignment to avoid unnecessary costs and confusion: “But to succeed, we need clarity, not confusion. Without regulatory alignment, shipowners will pay twice for emissions that should only be counted once, and that could actively hinder the path towards decarbonization.”
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Source: AJOT
