Maritime decarbonisation is increasingly shaped by a growing and complex regulatory landscape at both regional and international levels. Regulations introduced by the International Maritime Organization (IMO) and the European Union are designed to accelerate the reduction of greenhouse gas (GHG) emissions from shipping, while also driving the adoption of new fuels, technologies, and operational practices. The following provides a basic introduction to the regulations most relevant to our members and clients.
With the IMO's Net-Zero Framework (NZF) having been adjourned at the extraordinary session of the Marine Environment Protection Committee (MEPC) in October 2025, a binding global framework remains outstanding. The session is due to reconvene in late 2026, and Member States continue to work towards consensus in the interim.
International Maritime Organization (IMO) GHG strategy
In July 2023, IMO updated the global shipping GHG reduction strategy. The shipping industry accounts for approximately 2,7% of the world’s annual emissions and therefore adoption of this strategy is significant for global efforts to align with the Paris Agreement. The new strategy includes four levels of ambition, each aimed at reducing GHG emissions and promoting more sustainable practices within the shipping industry.
Skuld acknowledges these new ambitions from IMO and the challenges that arise for shipowners. Shipowners and charterers must comply with an increasing number of regulations entering the maritime industry. Whether it is the CII, EEXI/EEDI, ETS, Fuel EU Maritime, Sulphur Caps, NOx Ttier requirements or others, they create new challenges. Skuld's expertise and closeness to the market offer benefit of industry insight to members and clients on these topics.
FuelEU Maritime
From 1 January 2025 the FuelEU Maritime Regulation entered into force with the aim to reduce the greenhouse gas (GHG) intensity of the fuel used on board. The regulation applies to all cargo and passenger ships above 5,000 GT calling at or departing from ports within the European Economic Area (EEA) for commercial purposes. The regulation intends to promote the use of renewable and low-carbon fuels, supporting the EU’s target of a 55% GHG reduction by 2030 compared to the 1990 levels as per the Paris Agreement and the EU’s goal of climate neutrality by 2050. Compliance options include inter alia pooling, banking or borrowing surpluses, using biofuels, installing and utilising wind-assisted propulsion on board, or for newer dual-fuel vessels to run the engines on renewable fuels of non-biological origin (RFNBOs).
From 2030, the regulation also mandates zero-emission operations for container and passenger ships at berth, requiring them to use onshore power supply. We encourage an open and transparent dialogue with business partners to preserve clear responsibilities under the regulation and explore options for utilising the pooling possibilities.
EU Emissions Trading System (ETS)
As of 1 January 2024, shipping companies are required to purchase carbon credits through the European Union Emissions Trading System, where the ship calls in at least one EU port. The EU ETS operates on a “cap and trade” principle, limiting greenhouse gas (GHG) emissions and reducing the cap annually to align with EU climate targets. The EU ETS can impact members' and clients' operations.
Skuld urges shipping companies to develop knowledge about the EU ETS and its impact on maritime transportation. For members trading in the EU, the cost of allowances can be significant and will increase each year. Prioritising a robust plan for decarbonisation and fleet optimisation is crucial.
Emission Contral Areas – ECA
Emission Control Areas (ECAs) are designated maritime zones where stricter limits are imposed on ship emissions to reduce air pollution. Established under IMO regulations, these areas require vessels to significantly limit sulphur oxides (SOx), nitrogen oxides (NOx), and particulate matter (PM), typically through the use of cleaner fuels or emission reducing technologies. The aim is to protect human health, coastal environments, and sensitive marine ecosystems by enforcing more stringent standards than those applied globally.
Monitoring of ECA regions and their practical implications for the maritime industry is vital for our members and clients.
- Baltic Sea ECA (2006)
- North Sea ECA (2007)
- North American ECA (1 August 2012)
- US Caribbean ECA (1 January 2014)
- Mediterranean Sea ECA (1 May 2025)
- Canadian Arctic ECA (1 March 2026)
- Norwegian Sea ECA (1 March 2026)
- North‑East Atlantic ECA (1 September 2027)
UK ETS
The UK Emissions Trading Scheme is the United Kingdom’s carbon pricing system. It was introduced on 1 January 2021 following the UK’s exit from the EU emissions trading system. The UK ETS is closely aligned with the EU Emissions Trading System and follows the same "cap and trade" design. The first scheme year will run from 1 July 2026 to 31 December 2026, with subsequent years from 1 January to 31 December. The EU ETS will apply to ships of 5000 gross tonnage (GT) and above, with plans to review this by 2028.
The Africa Sovereign Carbon Registries
The Africa Sovereign Carbon Registries introduce a national "polluter pays" system for shipping, where vessels calling at participating ports must report emissions and pay a carbon contribution. The model follows an ETS-like logic, but revenues are retained by the host country and used for domestic climate projects.
Djibouti launched the first scheme in 2023, with Gabon following from 2025.