Decarbonization Déjà Vu: Columbia Group warns ship owners risk paying twice to go green

The global shipping industry faces the prospect of "decarbonization déjà vu" as it braces for overlapping climate regulations that could leave shipowners footing the bill twice, warns EmissionLink Managing Director Philippos Ioulianou, part of Columbia Group.

With the International Maritime Organization (IMO) preparing to implement its net-zero targets from 2027 and the EU’s FuelEU Maritime regulation already in motion, owners and operators are being forced to navigate diverging frameworks, timelines, and enforcement mechanisms — all aimed at the same goal: decarbonizing the fleet.

“On paper, the objectives are aligned. In practice, shipowners are being pulled in different directions with conflicting demands,” said Mr. Ioulianou. “They are being asked to invest in reporting systems, new fuels, and compliance capacity — often without the necessary infrastructure or clarity on which technologies will prevail.”

A major concern is double reporting, with companies expected to submit nearly identical emissions data in multiple formats to satisfy both regimes. This redundancy is more than a bureaucratic inconvenience; it represents a significant financial and administrative burden.

“If IMO's system comes into force in 2027 while FuelEU is already active, we risk at least two years of duplicated monitoring, verification, and penalties. This is not only inefficient — it’s costly,” he explained. “Every euro spent on parallel compliance structures gets passed down the value chain to charterers, cargo owners, and ultimately consumers.”

EmissionLink, part of Columbia Group, is calling for urgent action to harmonize international and regional compliance systems. Mutual recognition of verified emissions data between IMO and EU authorities would be a logical first step. An integrated submission platform, allowing owners to report once and comply with both, would go even further in easing the transition.

“We fully support the drive to decarbonize,” he adds. “But regulation must reflect operational realities. Most vessels on the water today will still be trading in 10 to 15 years. Engine conversions to gas, methanol or ammonia are expensive, and global bunkering infrastructure isn’t yet mature enough to support consistent fuel availability.”

The company also warns against focusing solely on fuel-based solutions. “There are technologies that can reduce emissions today,” he said. “But if regulation only incentivizes dual-fuel capability, we risk stifling innovation in other critical areas.”

Mr. Ioulianou believes the current disruption also presents an opportunity for ship owners that embrace regulatory compliance as a strategic advantage offering sustainability reporting, retrofit guidance, and fuel strategy advisory services. These companies will stand out and the industry must evolve. Competing purely on cost is no longer viable.

He concludes: “But to succeed, we need clarity, not confusion. Without regulatory alignment, shipowners will pay twice for emissions that should only be counted once — and that could actively hinder the path towards decarbonization.”