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VPS: IMO delay more likely to give rise to Emission Trading Schemes including EU ETS

VPS highlights how the recent MEPC decision may impact the drive towards regional regulations, with EU ETS poised to potentially become the leading model of an emissions trading scheme.

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Marine fuels testing company VPS on Thursday (30 October) released a statement on how the recent MEPC decision may impact the drive towards regional regulations, with the EU ETS poised to potentially become the leading model of an emissions trading scheme: 

The decision made during the MEPC meeting in October 2025 to delay the IMO’s Net Zero Framework, by one year, has caused waves across the shipping industry, generating opinions and comments from many industry stakeholders. As a consequence of this decision, it is ever more likely that it will give rise to more regional legislation and Emission Trading Schemes (ETS), which may come to the fore as a substitute for the delayed global IMO Net Zero Framework.

With this in mind, the EU ETS, which was originally deemed a transitional legislation, may now become much more relevant as a leading example of an ETS, for other regions to follow.

Whilst so much focus has been placed on the latest MEPC decision and what impact it may have upon global shipping’s decarbonization efforts, it seems many may have missed further important developments within the EU, under FuelEU and ETS.

On 8 October 2025, the European Commission released its Guidelines for Reporting and Verification of Actual Methane Slip Factors. For the first time, shipowners can replace conservative default methane values with measured data, verified in accordance with IMO Resolution MEPC.402(83).

The current FuelEU default tables cover CO₂ only. They do not include methane slip (CH₄) or nitrous oxide (N₂O) factors for most new, or renewable fuels, such as:

  • Bio- and e-methanol
  • Ammonia
  • Hydrogen and other RFNBOs
  • Dual-fuel engines (where N₂O formation can be significant)

This means that without measured data, these fuels are not yet fully creditable or verifiable under FuelEU or ETS. In practice, this could lead to under- or over-reporting of GHG intensity and exposure to higher emissions costs.

However, there is a solution, as the IMO MEPC.402(83) defines how to measure both methane (CH₄) and nitrous oxide (N₂O) onboard, whilst the EU Guidelines (Oct 2025) define how to report verified CH₄ factors under FuelEU, with N₂O procedures expected soon. The technology to continuously measure and verify, CH4, CO2 and N2O, already exists. VPS Emsys can undertake these tasks and correlate these gaseous emissions with engine load, automatically building a verifier-ready Methane File.

It is so important for shipowners and operators to act now as from 2025, voyages which will fall under the EU ETS 2026 cycle, will see all combustion-related GHGs, (CH4, CO2 and N2O), priced and verified. At present FuelEU does not provide any default methane or nitrous oxide factors for new fuels, yet only measured values can truly provide accurate GHG accounting and lower ETS exposure.

VPS EMSYS provides the measurement framework today, fully aligned with IMO 402(83) and future- proofed for upcoming FuelEU verification. The framework is here. The tools exist. What remains is to measure now.

 

Photo credit: VPS
Published: 31 October, 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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