BAR Technologies has urged immediate action to create a unified global carbon framework, emphasizing that the rise of various regional emissions trading schemes is creating compliance challenges for the maritime industry and may hinder decarbonization efforts. Shipowners are now navigating a complex landscape of overlapping obligations from initiatives such as the EU ETS, FuelEU Maritime, and the IMO’s delayed Net-Zero Framework, among others. The International Carbon Action Partnership (ICAP) reports over 30 emissions trading systems are currently active or in development globally, highlighting a fragmented approach to carbon compliance.
This fragmentation mirrors a larger global issue, as research from the Grantham Research Institute reveals that since the Paris Agreement, over 900 climate adaptation laws and policies have been enacted across 35 countries. While this reflects growing climate ambition, it also presents risks associated with uncoordinated frameworks, which may lead to implementation gaps, increased costs, and regulatory friction. In the UK, the shipping sector has expressed concerns regarding plans to extend the UK Emissions Trading Scheme to domestic maritime operations, fearing it could undermine national competitiveness.
John Cooper, CEO of BAR Technologies, warns that the current situation is creating confusion and inflating costs, which could hinder the industry’s capacity to invest in scalable solutions. The introduction of the EU’s Carbon Border Adjustment Mechanism (CBAM) adds another layer of complexity, indirectly affecting shipping through carbon costs on goods like steel and cement. Cooper stresses the importance of a single, globally agreed carbon policy that is fair and transparent, advocating for a bunker-level collection mechanism to fund climate-positive initiatives while avoiding the complications of overlapping schemes. He concludes by emphasizing the urgent need for effective technologies, such as wind propulsion, that can operate across various regulatory frameworks.
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