Regulations under pressure: Coming to terms with reality
Global climate targets are intact, but regulatory pathways are redrawn as the UN and EU struggle to align ambition with economic and technological reality.
In October 2025, the IMO in London failed to gather its member states behind an adoption of the long-anticipated net-zero GHG framework. The new regulation was set to charge a fixed fee per CO2-equivalent emitted, which would be a game changer in global shipping.
“We must conclude that the proposed framework was rejected by the United States and a group of supporting countries,” says Tor Øyvind Ask, Fleet Director at Solvang.
“However, the overarching carbon reduction policy for shipping remains in place.”
Need for a new proposal
According to Solvang’s Fleet Director, the proposal was perceived as a fuel taxation without reinvesting the takings into technologies which could help the maritime sector become greener.
“We need a carbon pricing system that allows shipping companies to establish credible depreciation schedules and financing structures for investments in efficiency, alternative fuels and carbon capture.”
The EU jurisdiction
Alongside global regulatory uncertainty, the European Union has moved from climate policy design to implementation. This directly affects shipping through the FuelEU Maritime regulation. At year-end 2025, the regulation still didn’t recognize onboard carbon capture, due to CO2 offloading capacity and value chain still being established.
“We have strong expectations that carbon capture will be fully accepted, which would help Solvang pool resources between vessels and maximize the climate impact,” says Ask.
From theory to verification
A key regulatory challenge relates to lifecycle accounting, understating or excluding well-to-tank emissions for fossil fuels.
“We expect this to change,” says Ask. “International regulation has a long track record of adapting to technological and scientific reality. All current
evidence points at carbon capture as necessary for decarbonization.”
The implementation of FuelEU into Norwegian jurisdiction illustrates the complexity of this transition. “It is a demanding and time-consuming process,” Ask explains. “We are working closely with authorities to have them receive our flexible and verifiable data sets. While progress is gradual, we remain optimistic head of 2026.”
Regulations overview
From Solvang’s perspective, three EU instruments form the immediate regulatory backdrop:
EU Emissions Trading System (EU ETS) now covers maritime emissions, requiring shipping companies to surrender emission allowances for voyages involving EU ports.
FuelEU Maritime introduces a well-to-wake greenhouse gas intensity requirement, expanding the scope beyond CO2 to include methane and NOx, while recognizing onboard energy generation and emission reduction measures.
The Energy Taxation Directive (ETD) is expected to introduce fuel taxation for intra-EU voyages, while temporarily exempting alternative fuels to support early adoption.
