The Dynamic Regulatory Landscape of Shipping: Navigating Compliance and Decarbonisation
- Sep 28, 2025
- 3 min read
Updated: Aug 3
The regulatory landscape for shipping has never been more dynamic. Three major frameworks will likely dominate the conversation going forward. Let's explore the side effects of these regulations and how they have changed the industry.
EU Emissions Trading System (ETS)
Since its extension to maritime in 2024, the EU Emissions Trading System has changed the way owners and charterers collaborate. What was once siloed consumption data is now the basis for voyage statements, EUA reconciliation, and shared cost responsibilities. This has not only priced carbon but also reshaped the culture of operational and data transparency. As a result, it has alleviated the risk associated with the following regulations.
FuelEU Maritime
Into force since January 2025, FuelEU goes further by setting annual GHG intensity limits on energy consumption on board. Unlike ETS, where compliance costs are tied to a transparent EUA market, FuelEU’s costs are less predictable. Penalties, biofuel indices, or surplus trading may define the financial exposure. As noted in our recent deep dive, this uncertainty makes contractual agreements and compliance strategies critical. What used to be outlined in 1-2 pages now extends to 7-10 pages, far beyond technical responsibilities.
IMO Net Zero Framework (NZF)
The global piece of the puzzle is the IMO Net Zero Framework. At the exceptional MEPC meeting in October, member states will decide whether to adopt the IMO’s NZF from 2027 onwards. If passed, it would introduce global fuel standards and GHG pricing mechanisms. This creates a chance for alignment with EU schemes. If rejected, we risk a patchwork of regional regulations. The UK’s expansion of its ETS, Turkey’s planned scheme, and African states such as Gabon launching maritime carbon taxes are just a few examples. With different emission factors (CO₂ vs. CO₂e, Well-to-Wake vs. Tank-to-Wake), the result could be confusion and rising compliance burdens.
As outlined in our earlier analysis, the choice between alignment and fragmentation will shape shipping’s decarbonization path for the next decade.
The Future of Shipping Regulations
Looking further ahead, the interaction between ETS, FuelEU, and the IMO NZF could define the industry’s post-2030 trajectory. A globally aligned system might simplify compliance, improve market liquidity for emission units, and accelerate investments into scalable fuels like methanol, ammonia, and hydrogen. Conversely, prolonged fragmentation could see regulatory costs rise above fuel costs themselves. Owners and charterers would be forced to navigate multiple overlapping regimes while competing for a limited compliant fuel supply.
Navigating Compliance, Cost, and Change
To discuss these shifts, BetterSea convened a decarbonization regulatory panel with leading operators and service providers in the maritime hub, Singapore:
Anil Jacob, Managing Director, Ocean Opt
Shaja Mathew, Senior Director of Operations, Bernhard Schulte Shipmanagement
Maximilian Schroer, Co-CEO, BetterSea
Moderated by Gordana Ilic, Co-CEO, BetterSea
In the teaser below, Shaja Mathew and Maximilian Schroer discuss the potential complexities that regulatory fragmentation may result in.
“Everyone coming with a different set of regulations is not in the best interest of the industry. Otherwise, it will be difficult for investors to make decisions." "And it’s not only the price you pay (...) it’s also how that ton of CO₂ is calculated. Different regions (may) use different emission factors, from CO₂ to CO₂e, Well-to-Wake to Tank-to-Wake. Without alignment, the same fuel could mean very different compliance costs.”
📺 The full panel discussion will be released Tuesday, 30th September, on YouTube, Spotify, Apple Podcasts, and everywhere else you can watch or listen to podcasts.
BetterSea's FuelEU Maritime Platform helps you find the best compliance pathway considering all complexities of maritime decarbonisation regulations. Also, check out our FuelEU Pooling Marketplace for effortless and fast compliance. It provides you with a streamlined, end-to-end process covering all potential compliance options, including external pooling and surplus trading. Book a demo below and get access afterwards!
Stay tuned for more insights on navigating maritime decarbonisation compliance in our upcoming newsletters. If you have any questions or need further guidance, feel free to reach out!
Best regards,
The BetterSea Team
Contact Us: info@bettersea.tech
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