The maritime industry is at a crucial juncture, with environmental sustainability and regulatory compliance taking centre stage.

Regulations like the IMO 2020 Sulphur Cap, revised MARPOL Annex VI, the EU Emissions Trading System (EU ETS), and FuelEU Maritime have significantly changed industry operations, pushing stakeholders to adopt cleaner technologies and more efficient practices. While these regulations pose challenges, they also drive innovation and long-term value creation.
The Impact of IMO 2020
The IMO 2020 Sulphur Cap, introduced by the International Maritime Organization, mandates reducing sulphur content in marine fuels to 0.50% m/m from the previous 3.50%. This regulation aims to combat the harmful effects of sulphur oxide emissions, which contribute to air pollution, acid rain, and respiratory problems. To comply, shipowners have transitioned to higher-cost low-sulphur fuels or invested in exhaust gas cleaning systems (scrubbers) to continue using high-sulphur fuels while remaining compliant.
FuelEU Maritime and EU ETS Integration
FuelEU Maritime and the inclusion of maritime transport in the EU ETS are part of the EU’s broader Green Deal strategy. FuelEU Maritime mandates the gradual uptake of renewable and low-carbon fuels and the use of onshore power supply in ports to reduce greenhouse gas (GHG) emissions and air pollution. Effective from 2025, this regulation requires ships to reduce GHG emissions intensity in the energy used, with targets increasing every five years, starting with 2% in 2025 and reaching 80% by 2050. The inclusion of the maritime industry in the EU ETS from 2024 further emphasizes the urgency of reducing GHG emissions. Under this scheme, shipowners whose ships call at EU ports must purchase carbon allowances for their emissions, incentivizing the adoption of low-carbon technologies. Both FuelEU and EU ETS compel stakeholders to evaluate their fuel choices, such as LNG, sustainable biofuels, methanol, ammonia, and hydrogen, and the energy efficiency of their vessels. Solutions like optimized hull designs, energy-saving devices, and wind-assisted propulsion systems are becoming popular. Additionally, digital technologies like big data analytics and artificial intelligence are being used to optimize voyage planning and reduce fuel consumption.
Revised MARPOL Annex VI
The revised MARPOL Annex VI introduced the Energy Efficiency Existing Ship Index (EEXI) and the Carbon Intensity Indicator (CII), setting benchmarks for energy efficiency and carbon intensity per transport work. These measures compel shipowners to adopt energy-efficient technologies and practices, further driving the industry towards sustainability.
Innovations in Maritime Sustainability
Forward-thinking companies recognise that sustainability goes beyond regulatory compliance. By proactively adopting environmentally friendly practices, they position themselves as leaders in the green transformation of the shipping sector and prepare for the swift implementation of the stricter regulatory measures expected in the framework of the 2023 IMO strategy on reducing GHG emissions from ships, aiming for net-zero emissions by or around 2050.
Adoption of Renewable Energy: Several firms are experimenting with renewable energy sources, such as batteries and wind power, to complement traditional propulsion systems.
Collaborative Initiatives: Industry leaders are forming alliances, such as the Global Maritime Forum’s Getting to Zero Coalition, to accelerate the decarbonization of shipping. These partnerships emphasize the need for collective action in tackling global challenges.
Carbon Neutrality Goals: Some companies have set ambitious targets, including achieving net-zero emissions by 2050 in alignment with the IMO’s long-term goals. This involves investing in carbon capture technologies and researching next-generation fuels like hydrogen and e-fuels.
Eco-Friendly Port Infrastructure: The shift toward sustainable shipping extends to ports, with shore-to-ship power systems allowing vessels to turn off their auxiliary engines while docked. This helps reduce GHG emissions and air pollution in coastal areas, benefiting both local communities and ships’ regulatory compliance.
Challenges and Opportunities
While the industry has made significant progress, challenges persist. The high costs of adopting green technologies and the limited availability of alternative fuels present hurdles for many operators. Furthermore, the global nature of shipping requires harmonized regulations to avoid competitive disadvantages. Despite these challenges, the drive for sustainability has opened new opportunities. Green financing mechanisms, such as sustainability-linked loans, provide incentives for companies to prioritize environmental investments. Meanwhile, customer demand for eco-friendly practices creates a competitive edge for companies that can demonstrate environmental stewardship.
The Road Ahead
The maritime industry’s journey toward sustainability is far from over. As climate change becomes an ever-pressing issue, future regulations to fulfil the ambitions of the 2023 IMO strategy will lead to even stricter requirements on GHG emissions and energy efficiency. Industry players must remain adaptable, leveraging technology and collaboration to stay ahead of the curve. Ultimately, the aforesaid regulatory framework is not merely an obstacle but opportunity for transformation. By navigating these challenges with innovation and foresight, the maritime sector can exceed expectations and establish itself as a leader in global environmental progress.

* Shipping Deputy Minister To The President Of The Republic Of Cuprus