A clearer timeline

The UK Emissions Trading Scheme moved quickly during 2025 as policymakers sharpened the tool for reaching net zero targets. The most visible decision created a standalone scheme year in 2026, giving companies twelve extra months to prepare before the second allocation period begins in 2027. This breathing space reduces administrative stress and offers an ideal window for efficiency upgrades.

Transparency gains

Publication of transaction data in the Registry is another positive shift. Greater transparency strengthens market confidence and provides analysts with richer information that can spark new financial services dedicated to carbon efficiency.

Maritime decarbonisation momentum

Maritime transport took centre stage. From mid 2026 domestic voyages above five thousand gross tonnage will enter the scheme, with thoughtful exemptions for lifeline ferry routes. Linking deadlines and thresholds to those of the European Union reduces complexity for operators that move between jurisdictions daily. A surprising opportunity is the fifty percent deduction for voyages between Great Britain and Northern Ireland. Forward looking ship owners can design routing strategies that maximise low emission journeys and reduce compliance costs at the same time.

Safeguarding competitiveness

Free allocation reforms were calibrated to guard against carbon leakage while still nudging investment toward cleaner production. Retaining existing benchmarks for 2027 then shifting to European values from 2028 quietly aligns the two markets ahead of the planned linkage. Savvy manufacturers can therefore benchmark themselves against continental peers now and secure an early advantage.

Forward looking market design

Finally, confirmation that the auction reserve price will rise each year with inflation locks in price stability. This subtle choice sends a confident signal to investors planning renewable energy or efficiency projects that revenue streams from allowance sales will retain real value over time.

Conclusion

Twenty twenty five positioned the UK ETS as a transparent, predictable and internationally aligned market, giving businesses fresh certainty to accelerate low carbon strategies.

Source – gov.uk

Certified supply in practice

Bunge has completed the certification of its Brazilian soybean supply chain under internationally recognised sustainability criteria, unlocking a dependable feedstock for forthcoming Sustainable Aviation Fuel production. The approval covers planting, storage and crushing activities, confirming that greenhouse gas emissions, land use and labour standards all meet strict thresholds required by fuel regulators.

Farmer and regional benefits

Certification yields immediate advantages for growers. Farmers who demonstrate traceable practices receive preferential contracts and pricing, turning environmental stewardship into tangible revenue rather than an extra cost. Higher income from certified beans can finance precision agriculture equipment that improves yields across multiple crops.

Enabling future compliance

Traceability technology assigns each consignment a digital identity that travels from farm to crushing plant and onward to refinery. The data interfaces with lifecycle analysis models used by aviation

authorities, minimising administrative friction for fuel producers seeking approval. A non obvious insight is interoperability: identical certificates can unlock exports to several regions, reducing dependence on any single policy environment.

Strategic market implications

The programme overlays a transparent sustainability layer onto an established commodity flow, meaning no new infrastructure is needed. It also positions Brazilian soy to navigate upcoming Carbon Border Adjustment mechanisms, preserving access to premium markets.

Conclusion

Certified soybeans widen the pool of reliable Sustainable Aviation Fuel feedstocks while rewarding Brazilian farmers for climate smart cultivation, demonstrating that agricultural value chains can align profitability with global decarbonisation goals.

Source – worldgrain.com

Regulation at a Glance

The FuelEU Maritime framework began January 2025 and steadily raises greenhouse gas reduction requirements for vessels of at least 5000 gross tonnage calling at European ports. A two percent carbon intensity cut is required for 2025 and the mandate climbs to eighty percent by 2050. Early compliance is already achievable for gas powered vessels because liquefied natural gas delivers roughly twenty percent lower life cycle emissions than traditional marine fuels.

What Makes Pooling Powerful

Pooling allows several ships that share a verifier to combine their annual performance. Surplus compliance from one vessel can balance a shortfall on another as long as the combined outcome remains positive. This removes worry for owners operating mixed fleets and lets every participant optimise fuel choice and voyage planning rather than scrapping or converting assets prematurely. A neutral service provider can manage the accounting, distribute certificates and submit documentation, turning a complex administrative job into a simple subscription.

Bio LNG as the Secret Ingredient

By substituting a portion of conventional LNG with bio LNG produced from upgraded biogas, compliance generators push their calculated emission factor well below the regulatory line. Gasum has demonstrated that a single ferry burning pure bio LNG can create enough surplus to cover several conventionally fuelled sister vessels. One non obvious insight is that the pool manager can schedule bio LNG bunkering on only the most predictable routes, sharply reducing supply chain complexity while still sharing benefit fleet wide.

Looking Beyond 2030

Demand for sustainable drop in fuels will intensify across aviation road transport and shipping. Companies that secure long term bio LNG contracts today gain priority access when supply tightens, preserving their ability to operate legacy tonnage until new zero emission designs are commercially proven.

Conclusion

Pooling backed by bio LNG offers immediate compliance cost certainty and lays groundwork for deeper decarbonisation strategies over the coming decades.

Source – LNG Industry

Understanding the levy

The Civil Aviation Authority of Singapore Amendment Act 2025 introduces a transparent levy on every passenger ticket cargo consignment and charter flight departing from Changi Airport. The levy will be collected by airlines at point of sale then transferred to the authority. Because it is flat rather than percentage based it does not penalise premium travel more than economy seats, a subtle design choice that encourages airlines to keep upgrading cabin density without worrying about higher charges. That choice quietly aligns environmental goals with revenue management strategies.

Inside the SAF Fund

Collected sums flow into the new Sustainable Aviation Fuel Fund. Money can only be withdrawn for certified SAF purchases related environmental attributes and research supporting alternative propulsion. Ring fencing the cash in this manner builds clear demand signals for fuel producers and helps unlock scale production agreements in the region. A less discussed feature is that unused balances will generate interest credited back to the Fund, giving a compounding effect that could cover future price differentials once SAF prices converge with conventional jet fuel.

Strategic implications for finance and leasing

Airlines gain a new compliance cost yet also a clearer pathway toward meeting corporate emissions targets demanded by lenders. Banks can reference the levy schedule when structuring green linked loans, turning a statutory obligation into a measurable key performance indicator. Lessors with modern fuel efficient fleets become even more attractive, as lessee airlines can stack aircraft efficiency gains with guaranteed SAF allocations to improve reported carbon intensity.

Practical mitigation moves

• Negotiate multi-year SAF offtake contracts early
• Bundle levy payments into passenger surcharge disclosures for transparency
• Use fund participation data when issuing sustainability reports

Conclusion

Singapore has moved swiftly from policy concept to enforceable mechanism, combining predictable funding with demand aggregation. The model provides investors with rare regulatory certainty and could become a blueprint for other hub airports seeking balanced aviation growth.

Source – AG Asia Law

Cutting edge e SAF from Topsoe partnership

Topsoe has begun collaborating with Carbon Neutral Fuels to pilot the use of high efficiency solid oxide electrolysis cells for synthetic aviation fuel. Generating green hydrogen at high temperature allows energy savings that can reduce production cost by up to fifteen percent according to early lab data. The project will supply power from renewable offshore wind and aims to deliver fully drop in e SAF within three years, reinforcing investor belief that electricity based fuels can complement bio based pathways.

Marine shipping gains biofuel boost

Global forwarder DHL and carrier CMA CGM have committed to co using almost nine thousand metric tons of second generation Used Cooking Oil Methyl Ester across key ocean routes. The fuel cuts lifecycle emissions by roughly eighty percent versus conventional bunkers while keeping existing engines unchanged. Blending at scale provides a straightforward method for cargo owners to meet science based targets without heavy vessel modifications.

Corporate carbon removal agreements expand

Technology firm Microsoft has signed a twelve year offtake with C2X for three point six million tons of carbon removal through bio methanol production in Louisiana. The contract is one of the largest engineered removal deals to date and signals a maturing market where long term revenue certainty can unlock project finance for novel facilities.

Biochemistry and biogas milestones

UPM has produced its first commercial batch of industrial sugars from wood at its Leuna biorefinery, opening new sustainable feedstock streams for chemicals. Meanwhile EnviTec Biogas has secured three contracts in Germany for its EnviThan upgrading technology, demonstrating steady demand for renewable gas even in traditionally natural gas rich regions.

A non-obvious insight

Linking cross sector demand signals from aviation shipping and tech companies compresses the learning curve for suppliers. Shared offtake structures make it easier for financiers to assess risk, which accelerates capital deployment across seemingly separate commodity markets.

Conclusion

From synthetic jet fuel to marine biofuel and large scale carbon removal, early 2026 stories reveal a coordinated push toward practical low carbon solutions. The common thread is long term collaboration that converts climate ambition into bankable projects.

Source – BBI International

Lifecycle Optimisation Becomes Mainstream

Ship owners are increasingly assessing total cost of ownership rather than singular capital expenditure. Well maintained vessels receiving incremental digital and mechanical upgrades are outperforming younger tonnage, proving that longevity and efficiency are complementary. Contracting for lifecycle services gives operators predictable budgets and frees crews to focus on cargo performance.

Insight: Maintenance Data as an Asset

High resolution engine and voyage records, once discarded after compulsory reporting, are now being monetised. Financiers consider documented reliability histories when valuing older ships, meaning that a disciplined maintenance log can raise resale price or lower lending rates.

Flexible Decarbonisation Strategies

There is growing acceptance that no single fuel will dominate the transition. Dual fuel engines, hybrid battery systems and onboard space reservations allow ships to pivot between diesel, methanol or bio LNG as regional supply chains mature. Early planning avoids future stranded assets and preserves design freedom for additional technologies such as carbon capture or rotor sails.

Digitalisation and Big Data Power Efficiency

Connected sensors feed vast data lakes where predictive algorithms recommend optimal routes, trim and power settings in real time. Norwegian Cruise Line Holdings already reports double digit fuel savings through these analytics. The next wave involves shipboard processing that provides crews with immediate action lists even when bandwidth is limited.

Navigating Variable Regulations

Regional carbon pricing and efficiency indices are evolving quickly. Operators are responding by investing in compliance dashboards that link voyage data directly with regulatory reporting portals, reducing administrative burden. Toughening rules are also accelerating demand for flexible engines able to meet future fuel standards without costly retrofits.

Conclusion

Lifecycle thinking, adaptable fuel roadmaps, data centric operations and proactive compliance collectively position shipping for a productive and sustainable 2026. By treating change as an opportunity rather than a constraint, the maritime community is charting a clear course toward decarbonised profitable trade.

Source – Wartsila

Welcoming Julien Dufour as Senior Partner and Board Member at VURDHAAN

VURDHAAN is pleased to welcome Julien Dufour as Senior Partner and Board Member. His appointment strengthens our capacity to support clients navigating the real-world complexity of transport decarbonisation, sustainability strategy, regulatory compliance, and global policy change.

Julien brings 25 years of international experience across environmental auditing, sustainability, and corporate strategy, with work spanning more than 70 countries.

A proven builder in aviation and maritime sustainability

Julien is best known as the founder of Normec Verifavia, an environmental auditing organisation specialising in greenhouse gas emissions verification for the aviation and maritime sectors. Under his leadership, the organisation scaled into a truly global platform, serving clients in over 120 countries.

Key highlights from his track record include:

• Building an independent emissions verification platform serving more than 500 airlines worldwide
• Expanding maritime verification services to 1,000+ ships globally
• Driving continuous improvements in verification tools, methodologies and sustainability assessment frameworks
• Speaking at 50+ international conferences on aviation and maritime sustainability

In 2022, Julien transitioned from executive management while continuing to serve as a board member.

Convening the conversation in aviation sustainability

Julien is also a co-founder of Aviation Carbon, a global conference series on sustainability in aviation, hosted annually at London Heathrow since 2012.

Over time, Aviation Carbon has become a key international forum for dialogue and collaboration. Past events have brought together 500+ participants from 60+ countries, including representatives from 120+ airlines and business jet operators, alongside regulators, policymakers, and carbon market experts.

Broader leadership across humanitarian action and geopolitics

More recently, Julien has dedicated part of his leadership to humanitarian action, geopolitics, and peacebuilding. He is President of Frontlines for Peace, supporting independent field missions and initiatives aimed at saving lives and building peace in conflict-affected regions.

What Julien’s appointment means for VURDHAAN

As Senior Partner and Board Member, Julien will support VURDHAAN in three key areas:

1. Practical, implementation-ready expertise

His background in aviation and maritime GHG verification brings a rigorous, evidence-based approach, ensuring recommendations are measurable, audit-ready, and grounded in operational realities.

2. Strong insight into regulation and carbon markets

Through his role as co-founder of Aviation Carbon, Julien offers first-hand understanding of evolving policy frameworks, compliance requirements, and market dynamics affecting transport decarbonisation.

3. Global perspective and convening power

With experience across more than 70 countries, Julien enhances VURDHAAN’s international reach, partnerships, and thought leadership, while bringing a grounded view of risk and resilience in a changing global environment.

We are delighted to welcome Julien to VURDHAAN, and look forward to the work ahead.

New Regulations Kickstart Cleaner Skies

On 1 January 2026 Thailand will introduce mandatory blending of sustainable aviation fuel in all Jet A1 sold nationwide. The Department of Energy Business has created three clear fuel categories so suppliers and airlines can transition smoothly: classic Jet A1, co processed fuel, and a blend of Jet A1 with neat SAF. Only SAF that follows ASTM D7566 and is produced with hydroprocessed esters and fatty acids technology will qualify. By mirroring global benchmarks Thailand guarantees that every litre uplifted at its airports will satisfy the same specifications used by leading carriers in Europe and North America.

Local Projects Already Underway

Domestic capacity is building fast. Bangchak Corporation is constructing a facility that will transform used cooking oil into one million litres of SAF each day, while PTT Global Chemical is already delivering sixteen thousand litres daily through co processing. Because both projects rely on a widely available waste product, they reduce reliance on imported crude and create new revenue for restaurant chains that previously paid to dispose of oil.

A Non-Obvious Supply Chain Benefit

An often overlooked outcome of mandatory blending is that it encourages airports to modernise fuel storage early. Separate tanks for neat SAF prevent cross contamination and open the door for future biofuels in ground service equipment as well. The same pipeline upgrades that carry blended jet fuel could later distribute renewable diesel to catering trucks and baggage tractors, multiplying the climate gains without additional construction.

Conclusion

Thailand is pairing clear policy signals with immediate investment, positioning itself as a Southeast Asian hub for sustainable flight. As production scales and infrastructure modernises, travellers can expect lower carbon journeys that also support local circular economies.

Source – Travel And Tour World

Clear policy signals now in force

From 1 January 2026 every litre of Jet A1 sold in Thailand must contain at least one percent sustainable aviation fuel. The Department of Energy Business has issued detailed specifications for three categories of jet fuel covering conventional kerosene, co processing streams and blends that meet ASTM D7566 standards. Early volumes will come from HEFA technology that transforms used cooking oil into renewable hydrocarbons recognised by aircraft manufacturers.

Domestic capacity accelerating

Two early movers are leading the charge. Bangchak Corporation is completing a plant able to produce one million litres a day, while PTT Global Chemical is already supplying commercial volumes from a co processing line. Feedstock collection programs linking restaurants, food factories and waste hauliers are rapidly expanding, turning a disposal cost into a new income stream.

Why starting at one percent matters

A modest target offers a powerful benefit. Refineries, pipeline operators and airports gain a low risk opportunity to test logistics, metering and certification systems before larger percentages arrive. Each data point gathered will improve the accuracy of Thailand greenhouse gas inventory, a detail often overlooked when discussing blend mandates.

Alignment with international momentum

The rule echoes measures in Europe and the United States, giving Thai airlines an advantage ahead of upcoming International Civil Aviation Organization milestones. Financial tools under review such as excise relief and green loans are expected to keep ticket prices competitive even as renewable content grows.

Non-obvious insight

Thailand exports significant quantities of culinary oil. The new domestic demand for used oil enables logistics firms to backhaul waste streams instead of returning empty, thereby improving truck utilisation and cutting overall freight emissions.

Conclusion

By embedding sustainable fuel into routine operations Thailand turns ambition into action. The pragmatic one percent launch point paired with expanding capacity positions the country as a Southeast Asian frontrunner on the journey toward low emission flight.

Source – SustaiNation

From policy to practice

Newly appointed IMO Secretary General Arsenio Dominguez has declared 2026 the year of implementation. Rather than drafting more resolutions, the organisation will concentrate on delivering visible results under the theme From Policy to Practice Powering Maritime Excellence. The shift promises clearer timelines for stakeholders ranging from flag states to port authorities.

Modernising seafarer competence

Nearly two million professionals work at sea, and their roles are evolving quickly. The planned revision of the STCW Convention will incorporate training on alternative fuels such as methanol and ammonia, along with remote operation and data analytics. Early engagement with maritime academies should prevent curriculum gaps and ensure cadets graduate ready to manage tomorrow vessels.

Non-obvious insight

Updating the STCW framework will likely influence insurance premiums. Underwriters use crew qualification criteria when calculating risk. Faster dissemination of new competencies around alternative fuels could therefore translate into lower coverage costs for early adopter shipowners, improving the business case for green retrofits.

Advancing decarbonisation

Member states reaffirm the target of net zero greenhouse gas emissions by mid century with intermediate checkpoints under discussion. Technical guidelines for life cycle assessment of fuels are expected by mid year, assisting shipowners in comparing pathways without extensive in house modelling. At the same time the IMO will continue coordinating its voluntary cooperation platform that matches developing countries with donor funded pilot projects.

Autonomous technologies on the horizon

Completion of a mandatory code for Maritime Autonomous Surface Ships will provide clarity on responsibility, communication protocols and collision avoidance standards. Clear rules are essential for ports evaluating mixed traffic scenarios involving both crewed and remote vessels.

Conclusion

The 2026 agenda signals a decisive move from aspiration to execution. By coupling updated human skills with concrete regulatory tools, the IMO aims to accelerate innovation while safeguarding safety and environmental stewardship across global shipping lanes.

Source – Maritime Activity Reports