During the Baltic Exchange Tanker & Gas Market Insight Forum at IE Week 2025, experts examined the complexities surrounding the European Union’s FuelEU Maritime regulation and the International Maritime Organization’s (IMO) initiatives toward emissions reductions. The discussion revealed a challenging landscape marked by uncertainty. Martin Crawford-Brunt, the CEO at Lookout Maritime and an emissions lead at the Baltic Exchange, expressed skepticism about regulators’ ability to create fair conditions across sectors.
He remarked on the regulators’ tendency to introduce flawed regulations while relying on future amendments to address concerns. Crawford-Brunt highlighted the geopolitical factors complicating these efforts and proposed a market-driven approach. This method would involve measuring the global greenhouse gas equivalent for cargo and benchmarking it against Baltic standards to improve transparency and allow for effective pricing of emissions.
Edwin Pang, founder of Arcsilea, acknowledged the unique nature of the regulatory environment aimed at reducing emissions from shipping. He pointed out that these initiatives are being developed from the ground up, indicating that initial phases might not be efficient. Pang emphasized the importance of encouraging demand and production of alternative fuels, as well as the challenges posed by the necessity for detailed guidelines to operationalize IMO regulations.
Philip Roche from Norton Rose Fulbright LLP highlighted the inherent difficulties associated with decarbonizing shipping, recognizing it as a “hard-to-abate” sector. He noted that considering drastic measures, such as nuclear energy, underscores the complexity of finding solutions. Pang later emphasized the urgent need for an international fuel certification scheme, warning that without it, discrepancies could lead to disputes across different markets.
As discussions on global emissions regulations continue, shipowners face immediate decisions on vessel specifications that will remain relevant for the next two to three decades, raising concerns about meeting future carbon targets. The need for flexibility in new builds and a clear direction in technology adoption remains critical for the industry.