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Gard: Overview of IMO interim emission measures

Neil Henderson Senior Executive, Gard’s Industry Liaison, provides an overview of the interim measures agreed at MEPC 83 and outlines some of the reactions from the industry.

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RESIZED Chris Pagan

Maritime protection and indemnity (P&I) club Gard recently published an insight by Neil Henderson Senior Executive, Gard’s Industry Liaison, providing an overview of the interim measures agreed at MEPC 83 and outlined some of the reactions from the industry: 

On 11 April 2025 the IMO announced that agreement had been reached by the member states at MEPC 83 on interim measures as part of the IMO’s 2023 greenhouse gas (GHG) strategy to achieve net-zero by or around 2050. 

The proposed new chapter 5 to MARPOL Annex VI provides that the GHG intensity of all energy used by vessels – referred to as the GHG Fuel Intensity (GFI) – is to be progressively reduced. 

The measures will start from 1 January 2028 and apply to vessels of 5,000 gt or above.. There are two reduction trajectories: the more modest ‘Base’ target and the more ambitious ‘Direct Compliance’ target. These measures are intended to align with the IMO’s ‘base’ and ‘striving for’ GHG reduction targets 

If the vessel meets the more ambitious Direct Compliance target, the shipowner will receive surplus units (SUs). These can either be banked or transferred to other shipowners. By contrast, if the vessel fails to meet the required targets, the shipowner will have to purchase remedial units (RUs) at differing cost-levels, depending upon the degree of non-compliance.

The revenues from the RUs will be transferred to the IMO Net-Zero Fund, which will be managed by the IMO. This is intended, in part, to incentivise the use of zero and near-zero (ZNZ) fuels. The financial level of reward will be determined by 1 March 2027.

The MEPC will reconvene in October to adopt the proposal. This requires a two-thirds majority of the 108 Member State parties to MARPOL Annex VI, a total of 73 states. The majority voting in April saw 63 in favour, 16 opposed, and 24 abstentions; so, work will have to be done before October to secure the necessary additional support.

Fig.1 Trajectory for Base and Direct Compliance targets (2028-2035)

Fig.1 Trajectory for Base and Direct Compliance targets (2028-2035)

The basics of the GFI

The GHG Fuel Intensity (GFI) mid-term measures agreed are similar to but broader than the FuelEU Maritime Regulation. We will explore the similarities and differences in a subsequent article.

The GFI is the GHG intensity of the energy used onboard a ship. This comprises the energy from the fuel, from other sources, e.g. wind-assisted propulsion, and savings in emissions from technology such as carbon capture. The GFI is a measure of the grams of CO2 or CO2 equivalent, i.e. methane, nitrous oxide, per megajoule of energy; the unit is gCO2e/MJ. This is the same as the measure used for FuelEU Maritime.

Each energy source, whether it be fuel or alternative energy, is given a well-to-wake (WtW) figure for the GHG emissions. These are the GHG emissions throughout the lifecycle of the energy source: production – transportation – consumption onboard. The GFI figure for each fuel or energy source will be calculated by an IMO-recognised Sustainable Fuel Certification Scheme. 

Starting from 1 January 2028 there are two trajectories of reductions in the permitted GFI levels as compared to a 2008 starting figure. See Fig.1 above:

The ‘Base’ target which tracks the IMO’s base targets of a 20% reduction in GHG emissions by 2030 and 70% reduction by 2040; and 

The ‘Direct Compliance’ target. This tracks the ‘striving for’ targets of 30% and 80% reductions, respectively. 

The two target trajectories have been agreed up to 2035 only, other than a single Base target reduction of 65% for 2040. The targets for the period 2026 to 2040 must be agreed by 1 January 2032. 

By March each year, the shipowner will report the weighted average GHG intensity of the energy used onboard the vessel over the previous calendar year. This is the vessel’s Attained GFI. The shipowner will also report the vessel’s annual GFI Compliance Balance. This is the difference between the Direct Compliance target and the vessel’s Attained GFI, multiplied by the total energy used that year. It will be a positive or negative figure, measured in tonnes of CO2eq.

The reporting obligation applies to all vessels of 5,000gt or above, subject to several exceptions: ships operating only in the waters of their flag state; ships not using mechanical propulsion; FPSOs, FSUs, drilling rigs and semi-submersible vessels.

Note: The full article by Gard can be viewed here

 

Photo credit: Chris Pagan on Unsplash
Published: 2 June, 2025

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Alternative Fuels

MOL inks bio-LNG bunker fuel supply deals with Titan and Axpo for car carriers in Europe

Titan, part of Amsterdam-based Molgas, will continue to supply bio-LNG fuel in Northwest Europe, while Axpo will take charge of supply in the Mediterranean region.

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MOL inks bio-LNG bunker fuel supply deals with Titan and Axpo for car carriers in Europe

Mitsui OSK Lines (MOL) on Thursday (18 July) said it has signed new supply agreements in Northern Europe and the Mediterranean region to expand the use of bio-LNG marine fuel on MOL-operated LNG-fuelled car carriers.

Titan, part of Amsterdam-based Molgas, will continue to supply bio-LNG fuel in Northwest Europe, while Axpo will take charge of supply in the Mediterranean region.

MOL said the agreement makes it possible for its company to supply bio-LNG fuel for automobile carriers in the Mediterranean region, specifically Port of Malaga and Barcelona in Spain, following the bio-LNG fuel supply agreement in Western Europe, which commenced in March last year.

The bio-LNG fuel to be supplied in this initiative has a lifecycle carbon intensity (carbon dioxide emissions per unit of energy consumption) of -15 g-CO2/MJ or less, from production through consumption. Furthermore, this bio-LNG fuel has obtained International Sustainability and Carbon Certification (ISCC-EU). 

“Through this supply agreement, MOL has established a framework that ensures a continuous and stable supply of bio-LNG fuel not only in Northern Europe but also in the Mediterranean,” the company said.

As part of the group’s efforts to adopt alternative fuels and achieve net-zero greenhouse gas (GHG) emissions, it is utilising LNG-fuelled vessels as a bridge solution to facilitate the transition to carbon-neutral fuels such as bio-LNG and synthetic LNG (e-methane).

In 2025, MOL signed a bio LNG fuel supply agreement in Northwest Europe with Titan, part of the Molgas, and MOL has continued this bio LNG fuel supply agreement with the same company in 2026 as well.

 

Photo credit: Mitsui OSK Lines
Published: 19 June, 2026

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Biofuel

Kvasir Technologies lands EUR 10 million to scale bio bunker fuel production

The Danish biofuel startup raised the fund in a Series A investment round, which will provide capital to develop and design a new commercial production plant and scale climate-neutral drop-in marine fuel.

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Kvasir Technologies lands EUR 10 million to scale bio bunker fuel production

Danish biofuel startup Kvasir Technologies on Thursday (18 June) said it has raised EUR 10 million (USD 11.4 million) in a Series A investment round with participation from European Energy as a new investor, alongside existing investors EIFO, Maersk Growth and Footprint Fund. 

The Series A round provides capital to develop and design a new commercial production plant and scale climate-neutral drop-in fuel to be used in existing vessels.

At the same time, European Energy and Kvasir Technologies are entering into a strategic partnership by establishing the company KVEEN Biofuels, which is working towards the construction of a commercial-scale plant to produce biofuels using Kvasir Technologies’ patented technology.

“This investment round enables us to take the next crucial steps in developing and scaling our technology. At the same time, it underlines that there is still strong support for solutions that can deliver real climate impact in the maritime sector,” said Joachim Bachmann Nielsen, Ph.D. in Chemical Engineering and CEO of Kvasir Technologies.

Kvasir Technologies, a spin-out from research at the Technical University of Denmark (DTU), has developed a new technology to convert a wide range of non-edible lignin- based residues from agriculture and forestry into refined biofuels for shipping.

The climate-neutral biofuel can serve as an immediate replacement for fossil marine fuel without the need to modify ship engines or change existing infrastructure.

The new funding will be used, among other things, to scale the technology at Kvasir Technologies’ test facility in Fredericia, which can produce up to 2 metric tonnes (mt) of biofuel per day.

At the same time, development work will begin on the first commercial plant in the city of Aabenraa in the southern part of Jutland, which will demonstrate the technology on an industrial scale.

 

Photo credit: Kvasir Technologies
Published: 19 June, 2026

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ECA

DNV: North-east Atlantic joins expanding network of ECAs

DNV highlighted key information on the new North-East Atlantic ECA, which will enter into force on 1 September 2027, following recent amendments MARPOL Annex VI adopted at MEPC 84.

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RESIZED william william on Unsplash

Classification society DNV on Wednesday (17 June) highlighted key information on the new North-East Atlantic ECA, which will enter into force on 1 September 2027 following recent amendments MARPOL Annex VI adopted at MEPC 84, creating a continuous emissions control area across much of the North Atlantic: 

Need to Know

  • The new North-East Atlantic ECA will enter into force on 1 September 2027, creating a continuous emissions control area across much of the North Atlantic.
  • SOx limits (0.10% sulphur) will apply from 1 September 2028.
  • Ships meeting the MARPOL “three‑date” criteria (from 1 January 2027 onward) must comply with Tier III NOx limits for engines above 130 kW when operating in the ECA.

North-East Atlantic ECA

In general, the ECAs are designed to reduce air pollution from NOx, SOx and PM, and play a vital role in protecting sensitive marine environments as well as improving air quality for nearby communities.

The latest addition is the North-East Atlantic ECA, covering the Exclusive Economic Zones (EEZs) and territorial seas of Portugal, Spain, France, Ireland, Iceland, the Faroe Islands, Greenland and mainland UK that are not already included in existing ECAs. The EEZs surrounding Madeira, the Azores and the Canary Islands will be excluded. The precise ECA boundaries are defined by exact coordinates in Appendix VII of the revised MARPOL Annex VI.

Once in force, this designation will create a continuous ECA across the North-East Atlantic, linking the Canadian Arctic, Norwegian Sea, North Sea and Mediterranean Sea ECAs into a single, connected regulatory area.

eca map 2026 1

Application

The North-East Atlantic ECA, as part of the next amendments to Annex VI of MARPOL, will enter into force on 1 September 2027. The effective dates will be as follows:

SOx requirements

The sulphur limits for new North-East Atlantic ECA take effect 12 months after entry into force, in other words on 1 September 2028. From that date onwards, ships must use fuel with a sulphur content of no more than 0.10%.

Alternatively, compliance may be achieved using exhaust gas cleaning systems (EGCS) when operating on higher-sulphur fuels. However, it should be noted that restrictions on the use of open-loop EGCSs are becoming increasingly stringent, particularly in the coastal waters of northern Europe under OSPAR (please refer to our Technical and Regulatory News No. 26/2025), thereby limiting this as a practical compliance option in the region.

Note: The full article by DNV can be read here

 

Photo credit: william william on Unsplash and DNV
Published: 19 June, 2026

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