- Clean Fuel Transition Slows as Compliance Takes Centre Stage.
- Global Shipping Braces for a Pragmatic 2026.
- Decarbonisation Targets Clash With Fuel Supply Reality.
As we approach the end of 2025, the global shipping industry is still grappling with the clean-fuel transition that many had hoped for. Despite setting ambitious decarbonization goals, the year concludes with some familiar hurdles: unclear regulations, inconsistent enforcement, and a pace of change that outstrips the readiness of fuel supply chains, reports SMI.
Ambition Ahead of Infrastructure
“Shipping has not failed on ambition,” says Philippos Ioulianou(pictured), Managing Director of EmissionLink. “What we are seeing is regulation running ahead of infrastructure and fuel availability. That gap is what owners are being forced to manage.”
From Long-Term Goals to Short-Term Trade-Offs
Looking ahead to 2026, the focus will shift from groundbreaking fuels to navigating compliance and making commercial trade-offs. With global regulations still in disarray, ship owners and charterers will prioritise managing their risks over pursuing long-term transformations. “The conversation shifts from targets to trade-offs,” says Mr Ioulianou. “Owners need to stay compliant and competitive using the tools that exist today.”
FuelEU Maritime Changes the Game
While the International Maritime Organisation (IMO) still aims for net-zero emissions, a globally unified framework is still a work in progress. However, FuelEU Maritime is already influencing behaviours, pushing for stricter emissions reporting, increased pooling, and a greater reliance on digital emissions tracking.
“FuelEU is no longer something the industry is preparing for – it is something it is actively managing,” says Mr Ioulianou. “Pooling is attractive because it reduces cost and complexity at a time when fuel pricing and supply remain unpredictable.”
Digital Emissions Management Becomes a Must
Digital optimisation is becoming a key part of compliance strategies. Predictive emissions tracking, aided by digital twins of vessels and their voyages, is emerging as an essential tool for managing exposure to FuelEU regulations. Consequently, having secure, audit-ready monitoring, reporting, and verification (MRV) data is now a daily operational necessity. “Digital emissions management has moved from ‘nice to have’ to mission critical,” says Mr Ioulianou. “If your data is not accurate, secure and audit-ready, you are already behind.”
Policy Challenges and Carbon Revenue Pressures
On a global scale, reaching a consensus on future fuels remains a challenge. Governments are under increasing fiscal pressure, and carbon pricing is becoming an appealing revenue source as public spending rises. While climate objectives are still in play, the design of policies is increasingly influenced by financial realities, leading to ongoing discussions about credits, exemptions, and the eligibility of fuels like LNG and bio-LNG.
“Governments still want decarbonisation, but they also need revenue,” Mr Ioulianou adds. “That tension is reshaping policy in ways the industry needs to understand and plan for.”
Flexibility as the Winning Strategy for 2026
Looking ahead, Mr Ioulianou believes 2026 will be about preserving flexibility. “The global rulebook is not aligned, supply chains are not ready and pricing is volatile,” he says. “The smart move is to buy optionality – through pooling, selective biofuel use, LNG where allowed, and relentless operational efficiency supported by continuous emissions monitoring.”
He also points to the importance of how regulatory revenues are used. “Europe is collecting significant funds through ETS and FuelEU. If that money flows back into fuel supply and retrofits, confidence in the transition will grow. If it doesn’t, these schemes risk becoming permanent cost burdens rather than enablers of net zero.”
Alternative Fuels Struggle to Gain Traction
Alternative fuels such as ammonia and methanol are unlikely to take centre stage in the coming year. Orders for new vessels powered by alternative fuels have dropped significantly, and confidence in the widespread adoption of dual-fuel technology is diminishing.
“2026 will not be the year of ammonia or methanol,” Mr Ioulianouconcludes. “It will be a year of pragmatic, compliance-safe decisions by owners and charterers, while policymakers continue to debate who pays, who benefits and how global shipping’s energy transition can realistically be.”
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Source: SMI
