Shipping’s decarbonisation ambitions are clear but turning that ambition into commercially viable emissions reductions at scale remains a challenge.

As regulatory requirements tighten and fuel markets remain volatile, Pekka Pakkanen, Executive Vice President, Shipping Solutions, NAPA, says operational efficiency is emerging as one of the most immediate and scalable levers available to shipowners, with digital tools increasingly helping to maximise the benefits of energy efficiency technologies: 

The shipping industry’s decarbonization drive does not lack ambition – that is visible in the pace of innovation and research we see around us. But translating that ambition into action at scale and in a commercially viable way remains a different challenge altogether. The International Maritime Organization’s MEPC 84, which concluded in April 2026, reminded us of both how far we have come and how much complexity still remains.

Discussions around the Net-Zero Framework continued, with delegates agreeing to seek further consensus on key adjustments later in October 2026, while progress was made across several other fronts. Separately, the adoption of amendments designating the North-East Atlantic as a new Emission Control Area for Sulphur Oxides (Sox), particulate matter and nitrogen oxides (Nox) is a significant achievement. At the same time, the second phase of the review of the Ship Energy Efficiency Management Plan (SEEMP) and the Carbon Intensity Indicator (CII) began, focusing mainly on enhancing the SEEMP.

Progress, though incremental, is still being made in an environment defined by mounting regulatory obligations, volatile fuel markets, and a clean technology landscape still maturing. All these factors create a backdrop of uncertainty. It’s a word used often to describe shipping’s operating environment and still stands the test of time.

Why energy efficiency technologies remain key

Despite knowing this, the argument I want to put forward is a simple one that can help cut through the uncertainty. The single most accessible, most immediate, commercially viable and scalable lever available to shipping today for managing decarbonization is operational efficiency. Not instead of alternative fuels or new vessel technologies, but as the foundation on which everything else must be built.

Fuel price volatility has made efficiency a financial necessity as much as an environmental one. The European Union Emissions Trading System (EU ETS) and FuelEU Maritime are already in effect and tightening year on year. Add to this the second phase of the CII and SEEMP review, which MEPC 84 formally commenced, and all signs point to the need for operational performance data, optimization and reporting.

In today’s market, efficiency is both a sustainability metric and a margin protection strategy. Every tonne of fuel saved reduces exposure to volatile fuel prices, emissions costs, and operational uncertainty. The question for shipping executives is, therefore, is how to maximize the impact of efficiency.

The answer increasingly lies in the intelligent combination of digital tools and energy efficiency technologies. One development that has captured significant industry attention is the growing integration of wind-assisted propulsion systems (WAPS) with voyage optimization software. Harnessing the power of the wind is not just about installing sails, wings, or kites – it is also about navigating the inherent challenges that come with wind propulsion, from complex and fast-evolving weather patterns to training crew. Operating wind-assisted propulsion vessels requires both careful pre-planning and adjustments throughout a ship’s journey. Fast-evolving wind speed and direction, as well as waves and currents, must be assessed and constantly re-assessed throughout the voyage to determine the best possible route. Wind-assisted vessels need to catch winds at the right speeds and angles to make the most of their wings, rotors, or sails, which demands continuous route and speed modelling throughout the voyage not just before it. Relying on traditional means and manual methods alone risks leaving a lot of savings on the table. Instead, understanding changes in wind patterns and using this to the vessel’s advantage requires advanced digital tools.

Classification societies have also been responding to the increase in WAPS on the market and have included specific stability rule checks, which digital tools can help comply with. WAPS typically add weight to a vessel’s upper structure, shifting its center of gravity and creating additional stability considerations to be managed. Digital tools, within NAPA Design, can be used to calculate vessel stability characteristics and help users check their design’s performance against multiple classification society rules as well. These are all essential considerations to ensure the solution continues performing optimally.

Whether the technology is wind-assisted propulsion or air lubrication technology, digital technologies can help maximize the savings they deliver. Users can measure performance, adapt operations continuously and make decisions based on reliable data, which can then inform future investments in energy efficiency technologies.

MEPC 84 makes progress on the foundations underpinning global decarbonization 

The expansion of ECAs at MEPC 84 – including the newly designated North-East Atlantic zone – adds another layer of complexity. Research has consistently shown that ECA avoidance through route deviation is rarely the optimal commercial or environmental response; the fuel costs and schedule implications of detours frequently outweigh the cost of sailing through the zone with compliant fuel. Voyage optimization tools model these trade-offs in real time to help make better decisions than human assumptions alone.

MEPC 84 also progressed a review of the SEEMP framework, which remains central to how vessels document and demonstrate their carbon intensity management. The direction of travel is towards increased expectations around the quality, granularity, and integration of performance data. As regulatory frameworks increasingly rely on verifiable performance data, the quality of operational data becomes just as important as the technologies being measured. Poor data quality can undermine both compliance confidence and optimization efforts. Shipowners who have already invested in the digital infrastructure to capture and act on operational data will find themselves significantly better positioned, both for compliance and for commercial advantage.

The case for integrated data systems – platforms that bring together performance analytics, voyage planning, regulatory compliance, and reporting in a coherent interface – is a response to genuine operational needs. When data from signals, noon reports, and logbook entries can be brought together on one platform to produce clear, actionable insights, crews spend less time managing information and more time using it. The same shared source of operational truth also supports better ship to shore collaboration to support real-time route and speed optimization, continuous hull performance monitoring, and integrated compliance management.

None of this diminishes the importance of the longer-term energy transition. Alternative fuels, new energy efficiency technologies, and next-generation vessel design all have a critical role to play in reaching net zero by 2050. But those transitions take time, capital, and regulatory frameworks that are still being finalized. In the interim, and complementing those transitions, operational efficiency represents a proven, scalable, and commercially viable path to meaningful emissions reduction. The industry does not need to wait for its decarbonization ‘golden ticket’ to arrive from future technology. It already holds one. The challenge now is not identifying opportunities for efficiency but capturing them consistently across fleets and voyages.

Photo credit: NAPA
Published: 28 August, 2026

The proposed expansion of the EU Emissions Trading System (EU ETS) must provide fair treatment for shipping and deliver meaningful emissions reductions, according to emissions compliance specialist EmissionLink on Wednesday (5 August). 

The European Commission’s proposals would extend the system to offshore activities from 2027 and certain vessels between 400 and 5,000 GT from 2029. 

While broader coverage may support Europe’s climate objectives, EmissionLink warned that it will also create new commercial, contractual and compliance challenges.

Philippos Ioulianou, Managing Director of EmissionLink, said: “Expanding the EU ETS will not automatically make it more effective. The system must be coherent, proportionate and capable of delivering practical decarbonisation.

“Shipping should not pay twice for the same tonne of emissions. If the EU ETS operates alongside a future IMO carbon-pricing mechanism, there must be an automatic and transparent way to recognise payments and reconcile liabilities.”

The inclusion of offshore activities will be particularly complex. Offshore vessels may remain at worksites for extended periods, with operational control, fuel consumption and emissions responsibilities divided between owners, charterers, contractors and project developers. This means ETS obligations will increasingly need to be addressed in charterparties and project agreements, including responsibility for emissions monitoring, purchasing allowances and managing carbon-price exposure.

Smaller operators entering the system from 2029 may also face disproportionate compliance demands, as many lack the specialist teams, established data systems and carbon-market expertise available to larger shipping companies.

EmissionLink has welcomed proposals to align EU Monitoring, Reporting and Verification requirements more closely with FuelEU Maritime reporting, as well as changes intended to prevent circumvention through transhipment. However, the company is also calling for at least 50% of the ETS revenues generated by shipping to be reinvested in maritime decarbonisation at national level.

Ioulianou added: “Carbon pricing must be matched by practical investment. A meaningful share of shipping-generated revenues should support sustainable fuels, port infrastructure, vessel retrofits and credible energy-efficiency technologies.

“The credibility of the EU ETS will ultimately depend not on how much money it raises, but on whether it treats shipping fairly and helps the industry reduce emissions.”

Photo credit: EmissionLink
Published: 6 August, 2026

Rotterdam-based maritime technology company PortXchange on Tuesday (28 July) has urged the European Commission to expand the scope of its proposed revision of the EU Emissions Trading System (EU ETS), arguing that ports and operational efficiency measures should be eligible for decarbonisation funding alongside alternative fuels and onboard technologies.

On 17 July 2026, the European Commission proposed a targeted revision of the EU Emissions Trading System to strengthen European industrial competitiveness and support delivery of the EU’s 2040 climate target.

European Shipowners (ECSA) welcomed the proposal to earmark EU ETS revenues for shipping decarbonisation, alongside support for sustainable fuels and simplified reporting. However, it warned that the current approach leaves many energy-efficiency projects and clean technologies outside the funding framework.

PortXchange said that criticism is justified, but that the review also misses another vital part of shipping’s transition: ports.

PortXchange argued that shipping decarbonisation cannot be achieved through alternative fuels and onboard technologies alone. Better voyage planning, port-call coordination and information sharing can also reduce avoidable waiting, unnecessary acceleration and congestion-related emissions.

“Earmarking shipping revenues for shipping decarbonisation is absolutely the right direction,” said Sjoerd de Jager, Managing Director & Co-Founder, PortXchange. 

“But ports cannot be treated as spectators in this transition. They are one of the few places where emissions from today’s fleet can be understood, influenced and reduced immediately.

“It makes little sense to collect billions from shipping emissions while excluding measures that can cut those emissions now. Sustainable fuels are essential, but they remain expensive, scarce and uncertain. Europe should not fund only the future while ignoring the operational waste happening in and around ports every day.”

While much of the industry remains focused on alternative fuels, ports and shipping companies can already cut emissions caused by unnecessary waiting, excessive speed before arrival and poor coordination.

“Most vessel emissions occur during the voyage,” de Jager said. 

“But some of the quickest opportunities to reduce emissions are found in the final stages of a port call. When vessels have reliable information about berth availability and operational readiness, they can adjust speed, reduce fuel consumption and avoid unnecessary waiting at anchor. We already know how to do this.”

Operational efficiency should be treated as real decarbonisation, not as a secondary measure that sits outside the funding conversation.

Digital emissions intelligence, port-call optimisation and better operational coordination can help ports identify where emissions occur, understand which activities are driving them and target interventions that deliver measurable reductions across today’s fleet rather than waiting for tomorrow’s vessels.

“The industry often talks about future fuels as though decarbonisation begins when the next generation of ships arrives,” said de Jager. 

“The reality is that many of the vessels operating today will still be sailing well into the 2040s and beyond. We cannot afford to ignore opportunities that reduce emissions from the fleet we already have.”

PortXchange also believed greater consistency in emissions reporting will be essential if ETS-funded projects are to demonstrate meaningful progress.

“We cannot talk seriously about a level playing field while every port is measuring a slightly different race,” de Jager added. 

“The methodology does not need to be perfect on day one, but it does need to be consistent enough for ports, regulators and customers to understand whether emissions are genuinely falling.”

Photo credit: PortXchange
Published: 29 July, 2026