Shipping’s green transition has a data problem, but the solution is within reach

However, there is a fundamental challenge: While shipping companies are spending substantial amounts on decarbonization, many still lack the data needed to determine the actual environmental impact of their investments.

Emissions are often assessed through calculations, standardized emission factors and assumptions rather than continuous measurements of what ships actually emit. These methods remain important for regulatory reporting, but they do not necessarily reflect the performance of individual engines under different operating conditions.

For shipowners, this uncertainty can have both environmental and financial consequences.

The shipping industry is making important progress in the green transition, but we need to pay much more attention to documenting the actual results. Although shipowners are investing in cleaner fuels and new technologies, without accurate measurements, they cannot always determine whether these investments are achieving the expected reductions. We need to move from assumptions to actual data,

….says René B. Christensen, CEO of Green Instruments.

Increasing regulatory and financial pressure

The need for accurate emissions data is becoming increasingly important as international and European regulations impose stricter requirements on shipping.

The IMO’s Carbon Intensity Indicator (CII) requires ships to monitor their carbon efficiency, while the EU Emissions Trading System (EU ETS) puts a price on greenhouse gas emissions, including CO₂, methane and laughing gas. Meanwhile, FuelEU Maritime requires a gradual reduction in the greenhouse gas intensity of energy used onboard, with financial penalties for non-compliance.

These regulations make emissions an increasingly important financial consideration for shipowners.

Reducing emissions can lower a shipping company’s EU ETS allowance costs, while meeting FuelEU Maritime requirements can help avoid non-compliance penalties. Accurate emissions data can also improve regulatory reporting and help shipowners identify opportunities to reduce operating costs.

For LNG-powered vessels, FuelEU Maritime allows verified measurements of actual methane slip to replace standard emission factors, provided that the applicable measurement and certification requirements are met. If verified emissions are lower than the default values, this can improve regulatory compliance and potentially reduce associated costs.

At the same time, reducing fuel consumption remains one of the most effective ways to achieve immediate operational savings.

“Compliance is increasingly becoming an economic issue for shipowners. If they can reduce fuel consumption and emissions, they can achieve savings on both fuel and regulatory costs. And if they can document that their actual emissions are lower than the standard assumptions, that may also improve their compliance position. Accurate data is therefore not just an environmental tool. It can have a direct impact on the bottom line,” says René B. Christensen.

From emissions data to operational improvements

The financial benefits of continuous emissions monitoring extend beyond regulatory compliance.

By combining real-time emissions measurements with data on fuel consumption and engine performance, shipping companies can gain a much more detailed understanding of how their vessels operate. For instance, emissions and fuel efficiency can vary depending on engine load, operating conditions and the performance of individual engines.

Continuous monitoring makes it possible to identify inefficient operating conditions, compare engine performance and determine where adjustments can deliver improvements. This is particularly important for LNG-powered vessels, where methane slip can vary considerably depending on engine type and operating conditions.

The measurements also provided valuable information about engine performance, including differences in fuel consumption between individual engines.

Such insights can help shipowners optimize engine operation and reduce both fuel consumption and emissions without necessarily making major investments in new equipment.

“An important advantage of continuous measurement is that shipowners can see how their engines perform under actual operating conditions. They can identify where fuel is being used inefficiently and where emissions can be reduced. Instead of relying solely on theoretical calculations, they have reliable information that can be used to make operational improvements. That is where emissions monitoring can create real value,” says René B. Christensen.

Turning climate ambitions into measurable results

Green Instruments, headquartered in Denmark, specializes in measurement and monitoring technologies for the maritime industry.

Together, these technologies provide shipowners with detailed insights into emissions and operational performance, supporting both documentation and opportunities for improved energy efficiency.

Monitoring alone does not reduce emissions, nor does it replace the independent verification required under applicable regulations. However, it provides a stronger basis for identifying effective measures, assessing investments and documenting improvements.

As the maritime industry continues its transition towards lower emissions, reliable data is becoming increasingly valuable.

Ultimately, the success of shipping’s green transition will not be determined solely by how much the industry invests in new fuels and technologies, but by how effectively those investments translate into measurable reductions in fuel consumption and greenhouse gas emissions.