The maritime sector continues to navigate a complex regulatory environment focused on reducing greenhouse gas emissions, with significant advances being reported by both the EU Emissions Trading System (ETS) and International Maritime Organization (IMO).
EU ETS Succees in Integrating Maritime Transport
On December 3rd 2025, the European Commission adopted its 2025 Carbon Market Report, verifying the proper functioning of the EU ETS since expanding to maritime transport in 2024. 2024 marked the inaugural year that CO2 emissions from shipping were included; covering 50% of emissions when voyages depart or arrive outside the EEA and all emissions between two EEA ports as well as when ships arrived or departed an EEA port. Shipping companies demonstrated remarkable compliance, surrendering allowances for more than 99% of their requirements by September 30 deadline deadline.
2025 marks a turn towards environmental integrity with companies surrendering 40% of their 2024 maritime emissions allowances for release into auction, with an allowance reduction allowed if verified emissions from ice-class ships exceed surrendered allowances. Member States will cancel equivalent auction allowances if more are surrendered than verified emissions are verified; to preserve environmental integrity further, Member States have also pledged that equivalent allowances be cancelled at auctions should fewer surrendered than verified emissions are verified; this report further details ETS cap adjustments for 2026 including rebasing, expansion to cover methane and nitrous oxide from shipping sources, exclusions for small emitters;
Overall EU ETS emissions from power and industry remain on track with their target of 62% reduction by 2030; emissions for power sector decreased nearly 11% year-on-year between 2024-2023 due to renewables growth and coal-to-gas transitions.
IMO Prevents Net Zero Framework Adoption
MEPC/ES.2 decided at its 2nd extraordinary session of the Marine Environment Protection Committee (MEPC/ES.2) to postpone adoption of Net-Zero Framework (NZF) requirements governing GHG fuel intensity, pricing and reward mechanisms until October 2026. Drafted into MARPOL Annex VI revision in April 2025, this framework aims to reduce emissions through fees tied to carbon intensity for ships over 5,000 gross tons.
In October 2025, President Donald Trump's Administration expressed opposition to the NZF by labeling it as a global carbon tax and threatening sanctions, visa restrictions and port fees against nations supporting it. Nevertheless, 63 states who supported its draft version in April should continue backing it, providing some cover against opposition from oil producers like Saudi Arabia, Russia and UAE.
European Union states have voiced support for adoption, aligning it with wider emissions pricing efforts. Under this proposal, ships that exceed emission thresholds would incur fees that would then be used to reward low-emission vessels and aid climate-vulnerable countries.
Other Regulatory Updates are Available Now
As reported on December 3 2025, Norwegian Climate Minister Frode Rrvik objected to US efforts to weaken maritime emission rules - echoing criticisms by environmental groups - according to reports dated December 3, 2025. Global trade tensions, including potential tariffs may further complication emissions reduction talks according to an analysis dated December 27.
US ocean energy regulator, the Bureau of Ocean Energy Management, advanced deep-sea mineral leasing plans near American Samoa and Commonwealth of the Northern Mariana Islands in November 2025 with environmental assessments ongoing. Sustainability reporting also saw evolution with EU Parliament endorsing simplified Corporate Social Responsibility Reporting Dumps on November 13 and postponing compliance requirements to 2028 for larger firms.
These events provide evidence of the maritime industry's push toward decarbonization amidst geopolitical tension and regulatory changes.