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

Marine fuels supplier Peninsula recently published an article on why bio-LNG is emerging as a key fuel pathway in the maritime energy transition:

As the maritime industry accelerates its decarbonisation journey, operators face a growing challenge: reducing emissions while maintaining operational efficiency and commercial viability. While no single fuel offers a universal solution, Bio-LNG is increasingly attracting attention as a practical pathway for LNG-fuelled vessels seeking immediate emissions reductions without major infrastructure changes. 

The conversation around alternative fuels often focuses on future technologies and long-term investments. However, for many operators, the more pressing question is how to reduce emissions today using solutions that can be implemented within existing operations. This is where Bio-LNG presents a compelling proposition. 

“As operators look to balance compliance, cost and operational performance, Bio-LNG offers a practical solution that can be integrated into existing LNG infrastructure today. Increasing availability across key bunkering locations is helping turn decarbonisation ambitions into operational reality.” Cristina Danes, LNG Supply Trader, Peninsula. 

Building on Existing LNG Infrastructure 

BioLNG is a renewable marine fuel produced from certified biogenic waste feedstocks. While its origin differs from conventional LNG, it remains chemically equivalent, allowing it to be used within existing LNG infrastructure and dual-fuel engines. This compatibility eliminates the need for costly vessel modifications or extensive retrofitting programmes, reducing both complexity and investment requirements. 

For operators that have already invested in LNG-capable vessels, bioLNG offers a clear route to further improve environmental performance while leveraging existing assets and supply chains. 

The increasing availability of bioLNG across key bunkering hubs is helping remove barriers to adoption. Recent supply operations, including Peninsula’s first Bio-LNG delivery in the Port of Cadiz, illustrate how renewable marine fuels are becoming more accessible through existing LNG supply chains. 

Delivering Meaningful Emissions Reductions 

As regulatory requirements continue to evolve, the ability to demonstrate measurable emissions reductions is becoming increasingly important. BioLNG can achieve lifecycle greenhouse gas emissions reductions of up to 90% compared with conventional marine fuels when produced from certified waste-based feedstocks. 

These reductions represent a significant opportunity for vessel operators looking to improve their environmental performance while balancing commercial considerations and operational requirements. 

Supporting Regulatory Compliance 

Alongside emissions reduction targets, compliance is becoming an increasingly central consideration in fuel procurement decisions. 

Frameworks such as FuelEU Maritime are creating new incentives for lower-carbon fuel adoption while introducing additional complexity into compliance planning. In this environment, BioLNG can play an important role in helping operators manage their emissions profile and support broader compliance strategies, including participation in mechanisms such as FuelEU pooling. 

As regulations continue to develop, flexibility will become an increasingly valuable asset. Fuels that can deliver both environmental and compliance benefits are likely to play a growing role in operators’ fuel strategies. 

A Practical Step Forward 

The maritime energy transition will require a mix of solutions, technologies and fuel pathways. While longer-term alternatives continue to develop, BioLNG provides an immediately available option for LNG-fuelled vessels seeking to reduce emissions and prepare for a more carbon-conscious operating environment. 

For many operators, the transition to lower-carbon shipping will not be defined by a single transformational change, but by a series of practical steps. BioLNG represents one such step: leveraging existing infrastructure, supporting regulatory compliance and helping bridge the gap between today’s operations and the future of shipping.

Photo credit: Peninsula
Published: 11 August, 2026

With the first FuelEU Maritime compliance data emerging after the inaugural year of greenhouse gas (GHG) intensity reporting for ships trading in the EU, marine insurer Skuld spoke with Joe Bettles, Climate Policy Manager and author of the Countdown newsletter at the Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping, to examine what the early results reveal: 

The first data on FuelEU Maritime compliance is now emerging, following the first year of reporting against greenhouse gas (GHG) intensity targets for shipping companies trading in the EU.

To better understand what the early results show, we spoke with Joe Bettles, Climate Policy Manager and author of the Countdown newsletter at the Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping (Center). The Center recently published its analysis of the first reporting year in the article “What did we learn from the first year of FuelEU?”

Under the regulation, shipowners have several options for compliance, including:

• The pooling mechanism, which allows vessels with a compliance surplus to trade it with other vessels.
• The borrowing mechanism, which allows companies to defer a compliance deficit to the following year for a 10% surcharge.
• Meet the target by using low GHG intensity fuels.
• Pay the FuelEU penalty (penalty).

Pooling becomes the preferred option

The first year of reporting indicates that pooling has quickly become the preferred choice. According to data from the European Commission, 92% of vessels used the pooling mechanism, while only 2% used borrowing. The remaining vessels either paid the penalty or met the target by using LNG or other low-GHG energy sources.

Commenting on the findings, Joe Bettles says: “Our insights from the first year of reporting indicate that shipping companies were able to comply with the targets, with most using the pooling mechanism. This shows that FuelEU is working as intended. As we approach the IMO’s upcoming discussion on the Net-Zero Framework (NZF), FuelEU demonstrates that it is possible for the global fleet to comply with a GHG intensity regulation using existing fuels and providing incentives for the uptake of cleaner energy sources.”

A developing market for compliance surplus

The Center’s article also reviews the different pooling platforms available to shipping companies seeking to meet their obligations under the regulation. The price of compliance surplus, averaging around EUR 208/tCO₂eq, remained relatively stable, suggesting that the market matured early, with buyers generally able to find sellers.

On the development of the pooling market, Joe notes: “The prices for trading compliance surpluses remained well below the EUR 640/tCO₂eq penalty for VLSFO, making the pooling mechanism significantly more attractive than paying the penalty.”

Fuel choices remain central to compliance

The role of fuel choice is also important. Looking at fuels supplied to the FuelEU market, the Center estimates that 3.22 million tCO₂eq of reductions, relative to an all-VLSFO fleet, will be required to meet the 2% reduction target between 2025 and 2029. Based on analysis of previous years’ fuel consumption, the Center indicates that LNG may have contributed around one-third of the required reduction. Biofuel blends account for the remainder, with biodiesel and bio-LNG dominating the low-GHG fuel mix.

Joe highlights how the pooling mechanism can help extend the impact of lower-GHG fuels across the fleet: “Although LNG is not a drop-in replacement for VLSFO, the pooling mechanism under FuelEU allows an LNG-fuelled vessel to share its over-compliance with other vessels that cannot physically use LNG. Depending on the engine type in the ship, LNG can remain compliant with the 14.5% reduction target through 2039 and can further extend its compliance through banked surplus or by using liquified biomethane.”

Three early lessons from FuelEU Maritime

Drawing on the first year of reporting, Joe Bettles and the Center identify three lessons that may also be relevant for the IMO in the future.

First, the results indicate that a fuel standard for shipping can work. FuelEU’s first year has created incentives for the use of alternative fuels and a market for those who prefer to pay for emissions compliance.

Second, regulations should include mechanisms that support a broader mix of energy sources. Lower-maturity alternatives, such as wind-assisted propulsion, e-fuels and onshore power, still represented a limited share of the mix.

Third, policy stability and clear reduction pathways can help reduce uncertainty for shipping companies and support the business case for investment in cleaner alternatives.

Supporting knowledge sharing across the maritime value chain

Skuld is a Mission Ambassador to the Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping, supporting its work as a platform for collaboration, knowledge sharing and practical insight across the maritime value chain.

“The Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping is a highly valuable forum for us at Skuld. It provides access to a broad network of industry stakeholders and helps us stay close to the challenges shipowners face in meeting regulatory requirements and reducing emissions. Just as importantly, it serves as a platform for dialogue and knowledge sharing across the maritime value chain” – Matias Bøe Olsen, Decarbonisation and transition risk lead, Skuld.

Note: Read the full article on FuelEU’s first-year experiences here.

Photo credit: Chris Pagan on Unsplash
Published: 7 August, 2026