SIBCON 2026: Regulatory clarity single most critical factor for unlocking investment to decarbonise shipping, states DNV expert

As the global shipping industry navigates the complex transition toward net-zero emissions by 2050, industry experts such as Dr Shahrin Osman, Business Development Director, Maritime Advisory, DNV, are emphasising regulatory clarity is the single most critical factor for unlocking the investment needed to decarbonise the sector.

At the industry panel discussion The Role of International Regulation in Shaping Market Certainty and Fuel Transition Pathways of the 24th Singapore International Bunkering Conference and Exhibition (SIBCON 2026) on Wednesday (14 October), Dr Shahrin highlighted the immense pressure facing the shipping industry’s energy transition.

Regulatory Certainty Needed to Accelerate Decarbonisation

He noted that ship managers need to invest in crew training given the evolving regulatory requirements while managing diverse fleets across various jurisdictions.

For owners and managers, the challenge lies in balancing when to invest in new alternative fuel technologies (which comes with a high cost),  with the long-term viability of their assets.

“We are not sure of the final outcome in the IMO,” Dr Osman remarked, noting that the process is heavily politically driven.

Despite this uncertainty, he affirmed the shipping industry remains committed to the transition towards net-zero.

He stressed achieving the 2050 goal requires a combination of strategies—including the use of biofuels and energy-saving devices—rather than relying on a single “silver bullet.”

Need for Leadership and Consistency

A central theme of Dr Shahrin’s observations was the risk of regulatory fragmentation. Dr. Shahrin cautioned that without clarity from the International Maritime Organization (IMO), the industry may face a proliferation of regional regulations.

This patchwork of rules threatens to create operational inefficiencies and increase costs, which would ultimately be passed down the supply chain.

“We would like to see IMO take a greater leadership role,” Dr Shahrin stated, underscoring the importance of continued progress towards a workable regulatory outcome.

He further pointed out the shipping industry is struggling with the practical aspects of investment, specifically regarding the payback period for new technologies. With vessel lifecycles spanning between 20 to 30 years, shipowners are hesitant to commit capital without a clear, predictable regulatory pathway.

Empowering the Workforce

Beyond technology and regulation, Dr Shahrin underscored the human element of the transition. He reminded stakeholders not to overlook the seafarers who are on the front lines managing these new fuels and technologies daily.

“I’m a great proponent of the people, the ship staff who are on board on the day-to-day managing these risks,” he said.

A Call for Unity 

Concluding his remarks, Dr Shahrin called for greater collaboration across the maritime ecosystem. He argued that the disparity in incentives between charterers and shipowners must be bridged to achieve common goals.

“The stakeholders have to come in together to work as one,” he urged.

“For an owner to put in another energy-saving device or go to dual fuel, the investment can be quite hefty at this moment… we see disparity as we speak now between the charterers and the owners themselves to be able to come together and have this common goal.

“While the path to 2050 is challenging, consistent global regulation and unified industry action are the essential ingredients for a successful transition.”

Photo credit: Manifold Times
Published: 20 October 2026