The UK Chamber of Shipping has called on the UK Government to ensure that a future maritime fuel standard is backed by reliable reporting systems, clear compliance rules and sufficient availability of low-carbon fuels, warning that regulatory complexity could increase costs and undermine shipping’s competitiveness.
In a new paper, Designing a Workable UK Maritime Fuel Standard: Lessons from the implementation of FuelEU Maritime, the industry body draws on the challenges encountered during the implementation of the European Union’s FuelEU Maritime regulation, which entered into force on 1 January 2025.
It argues that the UK has an opportunity to learn from the European experience before developing its own framework.
The paper comes as the UK Government prepares to develop a domestic fuel standard as part of its wider maritime decarbonisation strategy, with a consultation expected in late 2026. The proposed framework is intended to encourage the uptake of lower- and zero-emission fuels, but the Chamber says its effectiveness will depend on how the rules are designed and implemented.
Industry warns against regulatory complexity
The Chamber’s central message is that ambitious emissions targets must be matched by practical arrangements that allow shipowners, operators, fuel suppliers and verifiers to comply without unnecessary administrative burdens.
Its assessment of FuelEU Maritime identifies several implementation difficulties, including complex reporting requirements, limited preparation time, evolving guidance and inconsistencies in how compliance calculations have been interpreted. In some cases, operators acting in good faith encountered difficulties meeting deadlines because procedures and supporting systems were not sufficiently clear or mature.
The paper also highlights challenges associated with compliance pooling, fuel allocation, verification and digital reporting. These issues demonstrate how a regulation intended to reduce greenhouse gas emissions can create operational and administrative complications when the systems needed to support it are not ready in time.
The Chamber therefore recommends that the UK establish comprehensive guidance well before compliance obligations begin, involve industry representatives and accredited verifiers from the outset, and provide adequate implementation support.
It also calls for a ship-level monitoring, reporting and verification (MRV) system to be introduced at least one year before the fuel standard takes effect. Digital infrastructure should be fully tested and complete at least one reporting cycle before operators become subject to compliance requirements.
Alignment with IMO and EU frameworks
Another major concern is the risk of regulatory fragmentation as shipping faces an expanding range of regional and international decarbonisation measures.
The Chamber argues that the UK should prioritise compatibility with emerging International Maritime Organization (IMO) fuel certification and lifecycle assessment frameworks, while maintaining interoperability with existing European requirements.
Without sufficient alignment, shipowners could face duplicated reporting obligations, inconsistent certification requirements and the risk of the same emissions being counted or financially penalised under multiple schemes.
The paper advocates a more integrated approach to emissions data, allowing information collected for one regulatory purpose to be reused wherever possible. It also calls for clear definitions of which voyages and emissions fall within the scope of the UK standard, alongside a review of how its requirements would interact with other regulatory regimes.
Fuel certification is another important consideration. The Chamber highlights the need for reliable, traceable evidence of the sustainability characteristics and lifecycle emissions of renewable and low-carbon fuels. It recommends a comprehensive digital certification system capable of tracking fuel transactions and their associated environmental attributes.
Such arrangements would help ensure that claimed emissions reductions are verifiable and that eligible fuels receive appropriate recognition under the future framework.
Fuel availability and costs remain key considerations
Beyond compliance systems, the Chamber warns that the pace of regulatory change must reflect the availability of alternative fuels and the readiness of supporting infrastructure.
It argues that targets set too far ahead of the market’s ability to supply compliant fuels could create unintended consequences, including changes in bunkering strategies, vessel routing and port-call patterns. These effects could undermine the competitiveness of UK ports and increase costs across shipping and trade.
Under fuel standards such as FuelEU Maritime, compliance can influence fuel procurement, operating decisions and the allocation of costs between shipowners, charterers and other parties. The Chamber therefore calls for early engagement with legal practitioners and industry stakeholders to establish clear responsibilities before the UK framework is introduced.
Key recommendations
Be underpinned by a robust ship-level MRV framework
A UK Fuel Standard should be underpinned by a mature ship-level reporting and verification system that is operational, fully tested and aligned with existing international reporting frameworks before compliance obligations begin.
Ensure alignment and interoperability with international frameworks
The UK should prioritise alignment with emerging IMO fuel certification and lifecycle assessment (LCA) frameworks, whilst maintaining interoperability with neighbouring regional systems. Parallel certification, reporting and compliance systems should be avoided in order to minimise administrative burden, reduce regulatory fragmentation and prevent double counting.
Set realistic, achievable targets informed by fuel availability and infrastructure readiness
Decarbonisation trajectories should be evidence-based and reflect realistic fuel availability, technical feasibility and infrastructure deployment timelines, while avoiding competitive distortions or unintended impacts on trade patterns.
Ensure commercial practicality and implementation flexibility
The framework should include flexibility compliance mechanisms, clear legal responsibilities and practical implementation arrangements that reflect the diverse operating and contractual structures of the shipping industry.
Commit to periodic review and alignment with IMO developments
The UK Government should establish a structured review process to maintain alignment with IMO policy developments, avoid unnecessary divergence and ensure the framework remains effective over time.