Global greenhouse gas (GHG) regulations in shipping share a common goal — decarbonisation. But the path is far from simple. Multiple databases, reporting standards and evolving requirements are placing increasing pressure on ship owners. This article addresses the latest regulatory developments, including MEPC 83, the top three challenges for owners and how BSM is supporting clients every step of the way.
Published on 13 May 2025
“Emissions reporting in the shipping industry is increasingly fragmented. Each regulatory framework tends to apply its own approach to calculating, collecting and verifying emissions, resulting in often parallel systems,” says Anil Jacob, Head of Fleet Performance and responsible for BSM’s Emission Management Services. “It’s unbelievable how much has come into force in just the last few years.”
The current regulatory environment is mainly shaped by two bodies, the International Maritime Organization (IMO) and the European Union (EU).
The IMO mandates several global frameworks, including:
The EU adds further regulatory layers for vessels calling at its ports:
The United Kingdom (UK) also requires participation in its UK MRV system.
The IMO will review and likely tighten both the EEXI and CII frameworks, with possible enforcement measures introduced.
For the EU ETS, shipping companies will need to surrender allowances for 70% of their reported emissions in 2025 (up from 40% in 2024). From 2027 onwards, 100% of emissions will be covered.
Similarly, the UK will implement its own UK ETS, requiring vessels calling at UK ports to buy and surrender emission allowances.
Coming into effect in 2027, the IMO Net-Zero Framework introduces two key global measures. The core elements were agreed at the 83rd session of the IMO's Marine Environment Protection Committee (MEPC 83) in April 2025, with formal adoption expected in October 2025.
Under this framework, ships will need to comply with:
“Given the highly divergent positions of over 100 participating nations, the current agreement can be considered a solid foundation,” says Anil Jacob.
Notably, the amended position on the issue of the responsible party was not reversed: by default, compliance responsibility lies with the ship itself, not the Document of Compliance holder. There is also a provision allowing upstream cost recovery from Commercial Managers, who typically order the fuel. “This turns the system into a ‘polluter pays’ framework—an important outcome for ship owners. This is positive news for both ship owners and managers,” he adds.
Anil Jacob and his team of BSM’s Fleet Performance Centre have identified three key challenges for ship owners:
“We understand compliance and we are here to guide our clients through it. Think of it as a ‘thought partnership’,” says Jacob.
Transparency through a holistic outlook
“We assess all international and regional regulations as a connected whole – wherever possible – and give our clients full transparency on what lies ahead. Every client receives a five-year compliance outlook and cost projection, supported by 24/7 access to our LiveFleet performance monitoring platform. In short, we co-create solutions with our clients,” he explains.
Efficiency through digitalisation and collaboration
“Our data management approach is built on digitalisation and strategic partnerships.” For example, BSM collaborates with DNV’s Veracity platform and Berenberg to streamline EUA trading. “This integration enables verified emissions data from across the managed fleet to be directly translated into EUA purchase offers—greatly reducing manual effort,” underlines Jacob.
BSM also supports clients with a dedicated FuelEU Dashboard which forecasts each vessel’s compliance balance and simulates strategies for reducing exposure—such as biofuels or flexibility mechanisms. Based on these simulations, BSM recommends the most suitable compliance strategy, including pooling options.
“The experience of recent years has shown that digitalising data collection and sharing is key to making all our lives easier. We’re committed to continuing on this path at full speed. The more we automate, the better we can simplify compliance and help our clients stay profitable,” Jacob concludes.
Visualisation of BSM’s data flow, synchronisation and compliance map. © BSM
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