Regulations

Shanghai developing certification system for sustainable marine fuels

June 4, 2025

Shanghai’s Maritime Safety Administration (MSA) is working to set up an International Shipping Sustainable Fuel Certification System.

IMAGE: Shanghai is one of the world's biggest shipping and bunker ports. Getty Images


The system has been announced in Shanghai - one of China’s biggest bunker ports - and arrives as shipping companies and bunker suppliers brace for tighter greenhouse gas (GHG) targets for marine fuels.

Shanghai's MSA cites the IMO Net-Zero Framework as a reason for setting up a certification system. The framework was approved by IMO member states in April and will come into effect from 2028. It sets two-tiered GHG intensity limits for ships over 5,000 gross tonnes. Ships that fail to meet one or both of the GHG intensity thresholds will face penalties.

The GHG intensities of fuels used by ships will be determined by lifecycle assessments. The MSA argues that an authoritative, independent and IMO-compliant scheme must be in place and throws its hat in the ring to develop one.

The work is led by the Shanghai International Shipping Carbon Footprint Labelling Association, which was recently set up with participation from Chinese oil company Sinopec, shipping major COSCO and the Shanghai Maritime University.

The working group draws on EU and IMO standards and takes experience from the Chinese bunker and shipping industries into account. They propose five fuel verification points – from feedstock collection to onboard use – with each batch logged on a blockchain platform.

Draft rules are due by December, followed by a pilot in 2026.

The plan raises questions about overlap with established global certification schemes such as the International Sustainability & Carbon Certification (ISCC) system, which already certifies marine biofuels.

The ISCC has faced sustained scrutiny over lax oversight and suspected fraud involving, among others, Chinese biodiesel exports. A deeper probe into ongoing fraud allegations is now under review by the EU.

The MSA says it wants to develop green governance rules for international shipping. But it has yet to outline how auditors will be accredited, how data will be shared or whether the certificate system will seek formal IMO recognition.

By Erik Hoffmann

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