The maritime sector continues to navigate a complex regulatory environment to address emissions, with notable advances in regional frameworks and emerging technological solutions. Last week saw several key developments highlight both achievements and challenges related to global shipping meeting environmental goals.
EU ETS Successfully Incorporates Maritime Emissions
On December 3rd, the European Commission adopted its 2025 Carbon Market Report detailing its effective functioning of the EU Emissions Trading System (EU ETS). Overall emissions from power and industry installations decreased approximately 50 percent below 2005 levels by 2030 - on track with its target of 62 Power sector emissions declined nearly 11 percent year-on-year between 2024-2023 due to renewable electricity generated through wind turbines and solar cells as well as gas replacing coal as power generation sources.
2024 marked maritime transport's inaugural full year under EU ETS, accounting for 50 By 2025, firms will surrender for 40
EU ETS revenues amounted to EUR38.8 billion by 2024, funding renewable energy projects across all member states including renewables, grids and public transport.
IMO Delays Net Zero Framework Adoption to 2026
The International Maritime Organization (IMO) has delayed adoption of its Net-Zero Framework (NZF) until October 2026 due to lack of consensus at the 2nd Extraordinary Session of the Marine Environment Protection Committee (MEPC/ES.2) held in October 2025. The goal is for it to implement 2023 GHG Strategy which targets net zero emissions by approximately 2050 by setting global fuel intensity limits and rewarding low and zero emission fuels with preferential pricing schemes.
Early in 2025, the International Maritime Organization (IMO) approved draft regulations combining mandatory emissions limits and GHG pricing for ships over 5,000 gross tonnage, which will eventually be codified in Annex VI of MARPOL. Unfortunately, due to postponements limiting entry into force before March 2028 it appears unlikely these will come into force, increasing dependence on regional measures like EU ETS, UK ETS, and FuelEU Maritime for compliance purposes.
Low-Emission Cement Carrier Technology Advances with Methanol Dual-Fuel Design
Hartmann Group announced December 11 that their newly built low emission cement carrier with dual fuel capability converting from coal to dual methanol will enter service by Q1 2028. Backed by both the Green Shipping Program (GSP) and Norwegian NOx Fund with NOK 60 million support, it will serve Norwegian coastal routes such as Oslo, Bergen, Kristiansand and Stavanger under a 10-year charter with Heidelberg Materials.
Heidelberg Materials, a major European cement supplier shipping over 3.5 million tons annually across Nordic and Baltic regions, noted increasing transportation emissions as production improved with carbon capture technology. This project showcases public-private partnerships to accelerate decarbonization in bulk trades.
Momentum Building for Battery Propulsion and Policy Dialogues
As reported on December 10, the demand for zero-emission maritime operations is fueling growth in maritime battery propulsion systems, according to reports on December 10. Separately, discussions taking place on December 1 revealed US and Norway seeking agreement on maritime climate policies amid global emissions debates.
These developments reflect industry's efforts toward practical solutions, with global standards evolving over time and regional regulations providing interim relief.