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DNV representative calls for pragmatism amidst IMO Net-Zero Framework regulatory stall

Adjournment allows IMO to address questions about governance and distribution of the Net Zero Fund, correction factors, specific lifecycle assessment methodologies, etc.

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A 12-month delay regarding work towards consensus on the International Maritime Organization (IMO) Net-Zero Framework has given more time for the shipping industry to develop a pragmatic approach towards maritime decarbonisation, believes a classification society DNV representative.

Gustad Hormazdi, Business Development Director, Maritime, DNV made the following observation during ‘The Rise of LNG as a Sustainable Marine Fuel’ panel discussion session at the Asia Gas Markets Conference 2025 on Tuesday (28 October).

Hormazdi highlighted the complex interplay between demand, supply, and regulatory clarity as hurdles for the maritime industry’s transition towards decarbonisation, including for the adoption of liquefied natural gas (LNG) as a bunker fuel.

While there has been a large number of LNG-fuelled vessels on order, the supply infrastructure for LNG bunkering needs to keep pace. He observed shipyards in China and Korea are demonstrating a strong appetite for building LNG Bunker vessels, indicating scaling up production can be achieved once demand solidifies.

However, he cautioned investor hesitation persists due to regulatory uncertainty, despite motivators such as the EU Emissions Trading System (EU ETS).

“DNV actively works with energy companies, charterers, and owners to analyse various scenarios and has even submitted a white paper to the IMO (Report of the Comprehensive impact assessment of the basket of candidate GHG reduction mid-term measures) on tariffs and penalty schemes to help shape acceptable policy routes,” he shared.

Addressing DNV’s stance, Hormazdi explained its Maritime Forecast to 2050 and Energy Transition Outlook reports advocate for a balanced and pragmatic approach to the life cycle assessment of marine fuels. This position aims to support early adopters by preventing overly theoretical approaches that could hinder investment in renewable and near-zero fuels.

Regarding the IMO’s decision to delay the Net-Zero Framework, Hormazdi described it as an delay in decision making noting while April 2025 targets were initially well-received subsequent discussions revealed numerous unresolved technical and governance issues.

These included questions about compensating for near-zero fuels, correction factors (within the guidelines related to GFI), specific lifecycle assessment methodologies, and the management of a proposed fund of between USD 10 to 15 billion annually.

He noted 57 countries voted in favour of adjournment, 49 countries opposed, and 21 abstained – underscoring divided opinions towards adoption of the IMO Net-Zero Framework.

Moving ahead, Hormazdi suggested “book-and-claim” mechanisms for biomethane could accelerate decarbonisation provided if issues of trust, assurance, and tagging are adequately addressed.

He also acknowledged the positive impact of the EU ETS and other decarbonisation measures on marine fuel choices, leading to immediate offsets for using energy.

Related: DNV on net-zero shipping: Key findings from latest Maritime Forecast
Related: DNV: Fleet readiness surges ahead of alt bunker fuel supply – green transition at tipping point
Related: IMO: Discussions on adoption of Net-Zero Framework adjourned to 2026

 

Photo credit: S&P Global
Published: 5 November 2025

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LNG Bunkering

PIL’s LNG dual-fuel boxship “Kota Elok” arrives in Singapore on maiden call

As the first of 13 new 13,000 TEU vessels joining its fleet, Kota Elok is equipped to operate on LNG and low-sulphur fuel oil that helps reduce our greenhouse gas emissions.

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PIL's LNG dual-fuel boxship “Kota Elok” arrives in Singapore on maiden call

Singapore-based Pacific International Lines Pte Ltd on Monday (20 July) said its first 13,000 TEU LNG dual-fuel container vessel, Kota Elok, recently made her maiden call to Singapore on 15 July.

As the first of 13 new 13,000 TEU vessels joining its fleet, Kota Elok is equipped to operate on liquefied natural gas (LNG) and low-sulphur fuel oil that helps reduce our greenhouse gas emissions. 

The vessel also incorporated energy-saving features and digital technologies to reduce fuel consumption and enhance operational performance, as well as a bow windshield to improve aerodynamics, contributing to improved fuel efficiency and lower emissions over the course of long-haul voyages.

“Following Singapore, Kota Elok will continue her voyage on our East Coast Service 1 (ES1) route to South America, calling at ports in Brazil, Uruguay, and Argentina before returning to Asia,” the company said in a social media post. 

Kota Elok also became PIL’s first vessel to receive Lloyd’s Register certification for compliance with the IACS UR E26 and UR E27 cyber security requirements.

Developed by the International Association of Classification Societies (IACS), UR E26 and UR E27 are mandatory cyber resilience requirements for newbuild vessels contracted from 1 July 2024. 

 

Photo credit: Pacific International Lines
Published: 21 July, 2026

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LNG Bunkering

CIMC SOE secures order for 12,000-cbm LNG bunkering vessel from Sinopec Clean Energy

Once operational, the vessel is expected to strengthen Sinopec’s domestic coastal LNG bunkering network and help address gaps in China’s alternative fuel bunkering infrastructure.

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CIMC SOE secures order for 12,000-cbm LNG bunkering vessel from Sinopec Clean Energy

China’s Nantong CIMC Sinopacific Offshore & Engineering Co., Ltd. (CIMC SOE) recently signed a contract with Sinopec (Beijing) Clean Energy Co., Ltd. to build a 12,000-cubic metre (m3) LNG bunkering vessel, according to Chinese maritime media.

The vessel is scheduled for delivery in 2028 and will support Sinopec’s efforts to expand its presence in the marine clean energy sector.

Once operational, the vessel is expected to strengthen Sinopec’s domestic coastal LNG bunkering network and help address gaps in China’s LNG bunkering infrastructure.

With this signing , CIMC Pacific Offshore Engineering’s LNG bunkering vessel orderbook is further strengthened, maintaining its leading position in the global market for small and medium-sized LNG bunkering vessels.

The contract also marked another milestone for CIMC SOE, which has seen a sharp increase in orders and business performance this year amid a surge in domestic LNG vessel demand.

 

Photo credit: Nantong CIMC Sinopacific Offshore & Engineering
Published: 21 July, 2026

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Nuclear

ABS awards AiP to Korean institute for SMR-powered container ship concept design

KRISO says AiP recognises the technical feasibility and safety of its concept design, marking an important milestone toward the development of next-generation nuclear-powered commercial ships.

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ABS awards AiP to Korean institute for SMR-powered container ship concept design

Korea Research Institute of Ships & Ocean Engineering (KRISO) on Thursday (16 July) received Approval in Principle (AiP) from the American Bureau of Shipping (ABS) for its concept design of a 15,000 TEU Small Modular Reactor (SMR)-powered container ship utilising Molten Salt Reactor (MSR) technology.

KRISO said the AiP recognises the technical feasibility and safety of its concept design, marking an important milestone toward the development of next-generation nuclear-powered commercial ships.

“This achievement demonstrates international recognition of KRISO’s technological capabilities in the rapidly evolving field of nuclear-powered shipping, supporting the transition toward low-carbon maritime transport,” it said. 

Building on this milestone, KRISO will continue advancing basic and detailed ship design, paving the way for future demonstration and commercialisation of SMR-powered vessels. 

Through continued R&D and international collaboration, KRISO remains committed to strengthening next-generation maritime technologies and contributing to the safe deployment of nuclear propulsion in the maritime industry.

 

Photo credit: Korea Research Institute of Ships & Ocean Engineering
Published: 21 July, 2026

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