Several new regulations are emerging across the marine industry that are set to fundamentally reshape ship design, operation and propulsion systems. These regulatory changes, focused primarily on reducing greenhouse gas emissions and improving energy efficiency, are driving the shift toward cleaner technologies such as battery-electric propulsion, hybrid systems and alternative fuels. As global pressure mounts to decarbonise shipping, compliance with these evolving standards is becoming critical for shipowners, operators and builders alike, influencing everything from vessel financing to chartering and port access. Below is a summary of the main regulations.
IMO GHG strategy
- Reduce total GHG emissions by 20 % (striving for 30 %) in 2030 (compared to 2008)
- Reduce GHG by 70 % (striving for 80 %) in 2040 (compared to 2008)
- Aiming to ‘reach net-zero GHG emissions by or around 2050
MARPOL Annex VI for emissions and energy efficiency & SEEMP (Ship Energy Efficiency Management Plan)
- Ships must monitor and report fuel consumption under DCS (Data Collection System) and maintain CII (Carbon Intensity Indicator) ratings
- Ships must have a concrete plan for continuous improvement of their operational efficiency (batteries and hybridisation often become part of the strategies)
- Fleet-wide, owners must track performance, upgrade technologies and ensure ongoing audits on DCS reporting and SEEMP compliance and avoid penalties
- Ships rated D or E must submit a Corrective Action Plan, which gets verified by the flag State or recognised organisation
European Union’s Emissions Trading System (EU ETS) – Extension to Maritime (2024 onwards
- Ships calling at EU ports will have to pay for their carbon emissions
- Major financial incentive to reduce emissions (battery-powered and hybrid ships can dramatically reduce ETS costs)
- Ships over 5,000 GT calling EU ports will need to buy allowances for their CO₂ emissions
- Covers 100 % of emissions within EU waters and 50 % of emissions on inbound/outbound voyages
- at around 70 euros per ton of CO2 and assuming a medium size ship that emits 10,000 tons CO₂/year, it would be around 700,000 euros per year for that ship only!
Energy Efficiency Design Index (EEDI)
- Applies to new ships only – existing ship are not affected
- Fixed at delivery (the EEDI rating doesn’t change during a ship’s lifetime)
- Mandatory since 2013 under IMO MARPOL Annex VI
- Sets progressively stricter energy efficiency targets for new ships over time
- Indirectly pushes for alternative propulsion systems like battery-electric or hybrid ships because traditional systems struggle to meet future EEDI phases without cleaner tech
- Overall, ship must be born efficient!
Carbon Intensity Indicator (CII)
- A new requirement under IMO from 2023
- Applies to existing ships and they are rated: A (best), B, C (acceptable), D, E (bad) based on their annual carbon intensity
- If a ship is rated D for three consecutive years or E for one year, mandatory corrective actions apply (extra audits, penalties, reduced chartering opportunities)
- Low-scoring ships (D or E) need corrective action plans to encourage retrofits like battery-hybrid installations to boost scores
- Overall, ship must live efficiently
The Fuel EU Maritime Regulation
- Mandates zero-emission while at berth
- Seagoing passenger and containerships above 5,000 GT must use onshore power supply or alternative zero-emission technologies from 2030 onwards to meet their electrical power needs when berthed for more than two hours in a Trans-European Transport Network port
- From 2035, this requirement will apply to all ports where shore power is available
The Alternative Fuels Infrastructure Regulation (AFIR)
- Mandates core and comprehensive ports in the Trans-European Transport Network to install enough onshore power-supply facilities to provide shoreside electricity for at least 90 % of the port calls by seagoing passenger and containerships above 5,000 GT every year from 2030
Green Shipping Corridors Initiatives
- Multilateral agreements (like US–Norway, UK–Netherlands, etc.) to create specific routes where zero-emission ships (like battery and hybrid vessels) are prioritised
- These projects are growing fast post-2023 under the Clydebank Declaration (launched at COP26)
US Port Initiatives
- California ports (Long Beach, Los Angeles, Oakland) mandating zero-emission equipment and vessels over time
European Ports
- Rotterdam, Antwerp, Hamburg building zero-emission corridors
Canada’s Ocean Protection Plan
- Promotes the adoption of clean marine technologies, including hybrid-electric propulsion and low-emission vessel initiatives.
- Part of a broader effort to protect coastal ecosystems and reduce maritime emissions
China’s Green Ports Program
- Introduces new requirements for low-emission vessels and the integration of shore power systems at major ports
- Aims to cut port-related air pollution and decarbonise China’s maritime logistics chain
The California Air Resources Board (CARB) At Berth Regulation
- As of January 1, 2023, container ships, refrigerated cargo (reefer) vessels, and cruise ships must connect to shore power or use an approved emissions control technology while at regulated California terminals
- The regulation will expand to include RoRo vessels in 2025 and tankers in 2027
- Aims to cut air pollution from ships at berth and improve local air quality in port communities
California’s Ocean-Going Vessels (OGV) Fuel Regulation
- Besides At-Berth rules, California also has fuel standards that limit ship emissions at sea (near the coast)
- Incentivises battery-assisted sailing and hybrid systems to cut emissions before reaching port
Norway’s Zero-Emission Fjords Regulation
- Starting 2026, only zero-emission ships will be allowed to sail in Norwegian World Heritage fjords
- Strongly pushing the development and deployment of fully electric ferries, cruise ships with battery packs or hydrogen-battery hybrids
- Aims to protect sensitive fjord environments by eliminating local air pollution and reducing greenhouse gas emissions
- Norway is the first country to implement such strict maritime emission rules in UNESCO-listed natural areas
Norway’s “Nasjonal Transportplan” (NTP)
- Part of Norway’s broader strategy to decarbonise domestic maritime transport and meet climate targets
- Mandates electric or hybrid solutions for ferries and coastal vessels by 2030
- Focuses on zero-emission technology adoption to cut greenhouse gas emissions in the maritime sector
- Supports infrastructure development (like charging facilities) to enable the transition
In conclusion, the various marine regulations aimed at tackling emissions, including stricter fuel standards, emission reduction targets and incentives for hybrid and fully electric systems, are pushing the maritime industry toward greater electrification.
These regulations, which span from port-based restrictions to those targeting vessels at sea, are crucial in reducing the environmental impact of marine transportation.
As the industry shifts toward cleaner energy solutions, ESS Ltd’s expertise in designing advanced battery packs for the maritime sector positions us as a valuable partner in developing efficient, reliable and sustainable products. With our experience, ESS Ltd can help drive the transition to cleaner, more electrified marine vessels, contributing to a greener future for the industry. Contact us to find out how we can help you!
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