DNV - Experts & Thought Leaders

According to a new DNV white paper outlining FuelEU Maritime requirements and compliance strategies for shipowners, compliance with the upcoming regulations will be expensive but applying certain strategies can significantly reduce the cost. FuelEU Maritime regulation Effective from 1 January 2025, the rules mandate stringent greenhouse gas (GHG) emission intensity requirements for ships over 5,000 gross tonnage (GT) transporting cargo or passengers for commercial purposes in the EU/ EEA. GHG emissions are calculated from a well-to-wake perspective.  In addition to emissions from onboard combustion, this calculation also includes emissions related to the extraction, cultivation, production, and transport of the fuel. The regulation includes provisions for crediting ships using wind-assisted propulsion. Cost-effective strategy The adoption of the most cost-effective strategy can result in savings of up to 16% or USD 21 million over a vessel’s lifetime The DNV paper provides shipowners with insights to reduce compliance expenses and avoid major penalties. It contains a comprehensive overview of the regulation, including a case study that highlights a range of different compliance strategies. This shows how the adoption of the most cost-effective strategy can result in savings of up to 16% or USD 21 million over a vessel’s lifetime compared to using Bio-MGO as a compliance option. Requirements and compliance options Knut Ørbeck-Nilssen, DNV Maritime CEO, said, “It is essential that shipowners understand the requirements and compliance options related to the FuelEU Maritime regulation to make informed business decisions." "Adopting a cost-efficient strategy with the right combination of measures can help shipowners reach compliance at reduced costs." Operational and commercial integrity “Just paying the penalty could prove a more costly option. All parties must understand their potential obligations and privileges, and how these might affect their commercial and compliance agreements." "Crucial to this is verified emissions data, which can maintain operational and commercial integrity across the maritime value chain.” Report recommendations The report provides recommendations for shipowners including securing long-term fuel agreements and implementing energy efficiency measures. It also recommends considering pooling as a mechanism for sharing and optimising costs. This is underpinned by a call to begin preparations immediately. The report also highlights how, by leveraging digital tools, maritime stakeholders can access verified emissions data, a key factor in compliance and maintaining both operational and commercial integrity throughout the value chain. Net-zero framework International Maritime Organisation is also set to introduce similar regulations shortly, with a net-zero framework A key point emphasised in the report is that the International Maritime Organisation is also set to introduce similar regulations in the near future, with a net-zero framework expected to be adopted in the fall of 2025 and come into force around mid-2027. Essential that shipowners understand the requirements and compliance options related to the FuelEU Maritime regulation so that they are equipped to make informed business decisions. Reducing costs  Adopting a cost-efficient strategy with the right combination of measures can help shipowners reach compliance and significantly reduce costs. “Doing nothing and paying the penalty could prove to be a costly option. All parties must understand their potential obligations and privileges, and how these might affect their commercial and compliance agreements. Crucial to this is verified emissions data, which can maintain operational and commercial integrity across the maritime value chain.”

NAVTOR believes it has “simplified the complexity” of FuelEU Maritime with a major update to its NavFleet ship operations platform. Released now, NavFleet 2.1 boasts the ability to automate extensive “well-to-wake” calculations, delivering a front-end user experience that is both easy to understand, and rich in regulatory and business insights. The solution, featuring enhanced visual upgrades and fully integrated digital logbooks, provides seamless data validation and verification. It empowers owners to accurately calculate penalty costs and generate comprehensive EU Statements that summarise compliance with CII, EU ETS, and FuelEU Maritime requirements, including penalties and balances. It is, says NavFleet Product Manager Tor Håkon Svanes, “an intuitive, easy pathway” for achieving compliance under the new regulatory framework. Setting standards “We have been working exceptionally hard, so our customers don’t have to,” comments Svanes. “FuelEU Maritime is a complex regulation that demands the kind of calculations, and a wealth of data, that is completely new for the industry. It sets a standard for future regulations, creating transparency and accountability around GHG intensity and emissions, but also heralds a headache for owners and operators that aren’t prepared." “The costs involved – for both non-compliance and errors in calculations – could be huge, and will get bigger as time progresses, so intelligent solutions that capture, utilise and quality check data are essential. NavFleet 2.1 is as intelligent as smart shipping gets.” EU voyage statements Compliance data is validated both automatically and by unique domain experts, for complete peace of mind The new solution does all the “heavy lifting” in the back end, presenting simple-to-understand insights on two main dashboards. These show fleet overviews, individual vessels, fuel consumption (both within and outside the EU), GHG intensity KPIs, emissions in relation to EU voyage statements, penalty costs, and much more, in addition to EU ETS information. Compliance data is validated both automatically and by individual domain experts, for complete peace of mind, before being sent through the system to verifiers, such as DNV Veracity.  Understanding of GHG Intensity Reports can be produced at the touch of a button, with detailed evidence to create an understanding of GHG Intensity balance and penalty costs at the end of the voyage.  This provides a vital tool for passing on penalty costs to charterers under FuelEU Maritime, in addition to the existing capability to allocate EU ETS allowance costs already in place. Voyage of improvement NavFleet 2.1 provides the seamless integration of digital logbooks, allowing onshore teams to access real-time data “We see this as the pill that cures those potential regulatory headaches,” Svanes states, “while also providing the understanding shipping companies need to evaluate compliance options – today and far into the future.” Alongside the FuelEU Maritime innovations, NavFleet 2.1 provides the first seamless integration of digital logbooks, allowing onshore teams to access a wealth of real-time data and unlock further levels of monitoring, insight and optimisation right across fleets. Svanes calls it “a milestone of integration in NavFleet’s continual evolution.” Further improvements include fresh notifications, enhanced vessel monitoring parameters, and a new style of visual presentation where fleet activity and data can be shown on an interactive globe. This can be used by management teams, but also as a “big screen” feature for offices, lobbies and reception areas to showcase global operations. Evolution of NavFleet “In totality, we see this release as a major step forward for ourselves, but also for onshore teams that want a new level of understanding, situational awareness and control,” Svanes concludes. “Next year will see us continue the evolution of NavFleet, refining it to meet industry demand and solve our customers’ most pressing fleet management pain points.” NAVTOR, which is headquartered in Egersund, Norway, is the world’s pioneering smart shipping and maritime technology provider, with products and services on over 18,000 vessels. Alongside NavFleet, the team delivers planning and voyage platform NavStation, as well as a connected ecosystem of digital solutions.

The Nordic Roadmap project has unveiled the Fuel Transition Roadmap for Nordic Shipping (‘the Roadmap’), a comprehensive document outlining a decarbonisation strategy for the region. The report urges Nordic ministers to take immediate action to support the industry in achieving its goals by closing the cost gap associated with the fuel transition. Its findings and recommendations were officially presented to Nordic ministers at a High-Level Conference on Green Shipping in the Nordic Region held in Copenhagen. Net-zero emissions by 2050 The Nordic countries have also pledged to meet ambitious regional climate targets for shipping Alongside their commitment to global maritime emission reduction targets set by the IMO, the Nordic countries have also pledged to meet ambitious regional climate targets for shipping. These include early commitments to net-zero emissions by 2050, advancing a sustainable ocean economy and green transition, cooperation on transport, infrastructure and energy supply, and the establishment of green shipping corridors. Three main barriers To decarbonise, shipping will need to switch to zero-emission fuels and the Roadmap strategy identifies three main barriers to their uptake in the region: Demand and costs – linked to the lack of demand for zero-emission shipping and cost-competitiveness of zero-emission fuels.  Fuel availability – referring to the lack of onshore development of the supply chain, including fuel production and sourcing of raw materials, distribution, and bunkering infrastructure.  Technology and safety – referring to the low maturity level of fuel technologies and safety regulations, both onshore and onboard vessels. Use of zero-emission fuels The report goes on to outline seven building blocks, broken down further into 20 specific actions to be taken towards 2030, to overcome the interlinked barriers. These represent specific work packages that governments and industry stakeholders must collaborate and work on in parallel to upscale the use of zero-emission fuels.  The key recommendations of the Roadmap highlight the urgent need for government action to bridge the cost gap for zero-emission fuels and to accelerate the implementation of competitive tenders for green shipping corridors. Green transition of blue economy An immediate priority is to develop a plan for the regional integration of fuel production and infrastructure The strategy envisions the first corridor becoming operational by 2025, followed by three more by 2026, and an additional six by the end of 2028. An immediate priority is to develop a plan for the regional integration of fuel production and infrastructure.  Ms. Ida Heimann Larsen, Deputy Secretary General of the Nordic Council of Ministers, said: "The Nordic Council of Ministers is proud to have helped bring about this comprehensive and ambitious public-private cooperation. And we will continue to support the advancement of the 7 key building blocks of the Road Map as part of a wider, cross-sectoral focus on the green transition of our blue economy. These are important stepping stones on our path towards making the Nordic region the most sustainable in the world." Decarbonisation targets Knut Ørbeck-Nilssen, CEO Maritime, DNV, said: "We call on Nordic governments to act swiftly on the urgent measures identified in the Fuel Transition Roadmap for Nordic Shipping. Doing so will give the industry confidence to invest in ships capable of running on zero-emission fuels, and the fuel infrastructure needed to support them." Knut Ørbeck-Nilssen adds, "Cross border and value chain collaboration will be crucial in enabling the industry to overcome key barriers and to meet the ambitious decarbonisation targets. By pioneering the way, the Nordics can not only drive value creation and boost exports but can also play a key role in the global fuel transition." Adoption of zero-emission fuels Bjarne Foldager, Senior Vice President and Head of Two-Stroke Business, Denmark, MAN Energy Solutions, said: "This Roadmap is a worthy initiative and, in tandem with other global decarbonisation efforts, represents a concrete way for Nordic shipping to collaborate and push decarbonisation through – among other parameters – the adoption of zero-emission fuels and green corridors." Bjarne Foldager adds, "At MAN Energy Solutions, we welcome the opportunity to work with like-minded partners and are more than happy to bring our expertise within marine propulsion and alternative fuels to the table in the pursuit of net zero." Zero-emission shipping The Roadmap is developed by the project team led by DNV with members from MAN Energy Solutions, IVL Swedish Environmental Research Institute, Chalmers University of Technology, Menon Economics, and Litehauz, and in collaboration with more than 60 industry partners. The Nordic Roadmap project started in 2022 and is funded by the Nordic Council of Ministers. It aims to reduce key barriers to the uptake of zero-emission fuels and develop a common roadmap for the whole Nordic region towards zero-emission shipping. 

The maritime industry is taking important steps to improve cybersecurity, catching up rapidly by introducing other industries' best practices into information technology (IT) and operational technology (OT) onboard vessels. Work remains to be done to ensure a cyber-resilient worldwide fleet of maritime operations. The way forward is through collaboration among all major stakeholders. Remote-controlled and autonomous ships In the future, the marine industry will increasingly use remote-controlled and autonomous ships and infrastructure. One can imagine multi-ship, multi-infrastructure hybrid scenarios where a software failure or a cyber-attack could result in widespread damage. “Protecting this advanced marine industry will drive the need for even higher levels of cybersecurity, reliability, and robustness of marine automation systems and software,” says Svante Einarsson, Head of Maritime Cyber Security Advisory, DNV Cyber. Cybersecurity insights CyberOwl complements DNV Cyber with advanced analytics and threat management for maritime vessels Einarsson shares additional insights into cybersecurity for the maritime industry in our recent interview. DNV expanded its cybersecurity capabilities by acquiring Applied Risk in 2021 and Nixu in 2023, forming DNV Cyber with over 500 experts. This merger enhances maritime cybersecurity by integrating IT and industrial control system security services, offering comprehensive solutions from risk assessment to incident response. CyberOwl complements DNV Cyber with advanced analytics and threat management for maritime vessels, ensuring real-time threat monitoring and support to sustain regulatory compliance. Maritimeinformed.com: What are the cybersecurity vulnerabilities in the maritime market? What are the possible consequences and/or worst-case scenarios? Einarsson: The maritime industry faces several cybersecurity vulnerabilities, including the integration of IT and OT systems, unsecured Internet of Things (IoT) devices, outdated software, weak authentication, and human factors like phishing. The consequences of breaches can be severe, such as operational disruption, data theft, ransomware attacks, cyber-physical attacks, and supply chain disruption.  A worst-case scenario includes hybrid incidents that compromise both IT and OT systems at the same time within highly trafficked areas (such as a port). Depending on the available time and alternative means, the vessel might run aground resulting in major oil spills, environmental disasters, and/or significant loss of life. These vulnerabilities and potential impacts highlight the critical need for robust cybersecurity measures in the maritime sector.  Maritimeinformed.com: What is the role of regulations when it comes to cybersecurity in the maritime market, including IMO, IACS, and critical infrastructure regulations? How do regulations drive better cybersecurity practices? The EU’s NIS2 directive enforces robust cybersecurity strategies and incident reporting Einarsson: Regulations play a crucial role in maritime cybersecurity by setting global standards and ensuring compliance. The International Maritime Organisation (IMO) mandates cyber risk management in Safety Management Systems, while the International Association of Classification Societies (IACS) requires cybersecurity integration in systems and ships throughout the lifecycle of a vessel for new builds contracted after July 1, 2024. The EU’s NIS2 directive enforces robust cybersecurity strategies and incident reporting. These regulations drive better practices by standardising frameworks, holding organisations accountable, promoting holistic risk management, enhancing transparency, and fostering continuous improvement. This comprehensive regulatory approach forces all stakeholders in the industry (yards, vendors, and ship managers) to act and work together to implement effective cyber resilience.  Maritimeinformed.com: How does greater awareness boost cybersecurity? What is the role of near misses in driving cyber awareness and investments? Einarsson: Greater awareness boosts cybersecurity by educating individuals and organisations about potential threats, leading to better prevention and response strategies. It fosters a culture of vigilance, reducing the likelihood of successful attacks. Near misses play a crucial role by highlighting vulnerabilities and demonstrating the potential impact of cyber threats without causing actual harm. These incidents drive investments in cybersecurity by showcasing the need for robust defences, and well-planned responses, and encouraging proactive measures to prevent future breaches.  Maritimeinformed.com: What are the pitfalls of over-confidence and under-preparation when it comes to cybersecurity? Einarsson: Overconfidence in cybersecurity can lead to complacency, ignoring potential threats, and underestimating attackers. For example, relying on boundary protection only, and believing that a system is impenetrable might result in neglecting regular updates and patches, leaving it vulnerable to exploits. Under-preparation, on the other hand, means inadequate de fences, response plans, and drills. An example is the 2017 Equifax breach, where failure to patch a known vulnerability led to the exposure of sensitive data of 147 million people. Both pitfalls can result in significant financial and reputational damage.  Maritimeinformed.com: What is the role of technology advancements in driving the need and awareness of cybersecurity (e.g., the impact of digitisation, decarbonisation, automation, etc.)? Digitisation and automation support decarbonisation also increase the need for cybersecurity Einarsson: Decarbonisation is one of the key shaping factors in maritime today. Technology advancements like digitisation and automation support decarbonisation but also increase the need for cybersecurity by expanding the attack surface and introducing new vulnerabilities. As industries adopt remote maintenance, IoT, artificial intelligence (AI), and other technologies, the complexity and connectivity of systems grow, making them more susceptible to cyber threats. An example is how scrubber systems with modern technologies such as remote connectivity are retrofitted onboard older vessels today, creating a new and potentially unmanaged gateway to the control systems onboard the vessel. In other words, cybersecurity enables digitisation and decarbonisation.  Maritimeinformed.com: What is the labor situation when it comes to the skillsets needed for cybersecurity excellence? Is there a shortage of expertise and how can it be addressed?  Einarsson: The cybersecurity industry faces a significant skills shortage, with a very large number of positions unfilled globally. This gap is driven by the rapid evolution of cyber threats and the increasing complexity of digital environments. To address this, organisations should adopt skills-based hiring, offer continuous training and upskilling, and create clear career paths. Attracting diverse talent and collaborating with educational institutions can also help bridge the gap. Emphasising both technical and soft skills is crucial for developing a robust cybersecurity workforce. Many times the best option is to combine different competencies of several people into an aligned team, such as superintendents with OT system and operation expertise with cybersecurity and IT fleet experts. Maritimeinformed.com: What is the emerging role of AI in cybersecurity, such as the ability to anticipate attacks before they happen?  AI-driven tools can predict and anticipate attacks by recognising early warning signs, allowing teams to address vulnerabilities Einarsson: AI can significantly enhance cybersecurity teams' effectiveness by providing advanced threat detection and predictive analytics. Machine learning algorithms analyse vast amounts of data to identify patterns and anomalies that may indicate potential cyber threats. AI-driven tools can predict and anticipate attacks by recognising early warning signs, allowing teams to address vulnerabilities proactively. Additionally, AI automates routine tasks, freeing up human experts to focus on more complex issues. Human teams can assess AI-generated results, ensuring accuracy and context, and make informed decisions. Real-time threat intelligence and automated response systems ensure quicker mitigation of incidents, ultimately strengthening the overall security posture and reducing the likelihood of successful cyber-attacks.  Maritimeinformed.com: What is the impact of geopolitics on cybersecurity? How does the geo-political situation contribute to risks? Einarsson: Geopolitics significantly impacts cybersecurity by increasing the frequency and severity of cyber-attacks. Conflicts like the Russia-Ukraine war have led to coordinated cyber and hybrid offensives, targeting critical infrastructure globally. Geopolitical tensions contribute to risks by creating an environment where state and non-state actors exploit vulnerabilities and accessible assets for espionage, sabotage, and disinformation. The most obvious related threat in the maritime domain is GPS and AIS spoofing which is very common in military active areas. Incidents have already happened where the untrained crew has had their ship impounded after being misled into foreign state waters. 

We are in the midst of a decisive decade when it comes to the future of maritime. Facing a long-term goal of achieving net-zero emissions by 2050, the industry needs to make more informed and science-based decisions, and a new level of collaboration and flexibility will be needed among all maritime stakeholders.  DNV’s Maritime Forecast to 2050 report provides a deep dive into shipping’s decarbonisation journey.   Energy Transition Outlook 2023 The Energy Transition Outlook 2023 is the latest industry report focusing on the future of shipping and the uncertain route to getting there. DNV is the world’s pioneering classification society and a recognised advisor for the maritime industry.   Between 2030 and 2050, technologies will have to be implemented along the path to net zero In the near term, between now and 2030, reducing energy consumption will go a long way toward meeting the required carbon reductions, according to the report. However, in the longer term, between 2030 and 2050, newer technologies will have to be implemented along the path to net zero.  New pilot programmes "We try to have an overview of what's important and stay abreast of what is being discussed in the industry," says Eirik Ovrum, Principal Consultant, DNV Environment Advisory and lead author of the report. "This year, we focused on discussing technologies we haven't focused on before. We have to consider all of them." New pilot programmes including on-board carbon capture and nuclear propulsion will provide insight into how workable these strategies are on a larger scale and in a longer timeframe.  Technological commercialisation A lot of technology will have to be developed, demonstrated, and commercialised over the next decade" "In this decade, we will have to develop new technologies and demonstrate performance, and then after that, we need to use those technologies on a larger scale,” says Ovrum. “Technological commercialisation is uncertain until we show we can make it work. But it is necessary. A lot of technology will have to be developed, demonstrated, and commercialised over the next decade."  Decarbonisation focus for 2030 The near-term decarbonisation focus for 2030 is to reduce carbon emissions by 20%, which is “ambitious, bordering on the unrealistic,” says Knut Orbeck-Nilssen, DNV’s CEO, Maritime.  “The outlook is challenging, but I remain an optimist,” he says. “Shipping has managed great challenges before. We need collaboration both within shipping and across sectors with those who produce and distribute the energy. Public and private partnerships can make a good contribution.”   Use of alternative fuels Achievements toward the goal include a rapid growth in ships that can use alternative fuels “The clock is ticking louder on efforts to identify, define, and resolve barriers to successful and safe decarbonisation,” says Orbeck-Nilssen.  Achievements toward the goal include a rapid growth in ships that can use alternative fuels, such as methanol and LNG (liquified natural gas). Carbon-neutral fuels In the long term, a range of technologies will be necessary, beyond the use of alternative fuels.  The shipping industry will compete for the availability of carbon-neutral fuels with aviation, road transportation, and other industries. The shipping market will require an estimated 30-40% of the cross-sector carbon-neutral fuel supply in 2030. Carbon capture and storage The technology captures the carbon in the fuel before CO2 is emitted to the atmosphere through the exhaust Onboard carbon capture and storage can reduce the demand for carbon-neutral fuels and avoid broader market competition for sustainable biomass and renewable electricity. The technology captures the carbon in the fuel before CO2 is emitted to the atmosphere through the exhaust, thus allowing for continued use of carbon-rich fossil energy (but with significantly reduced CO2 emissions). Nuclear-powered ships Nuclear-powered ships are another approach, which is a proven technology used in navies and icebreakers. The technology would also reduce the competition for biomass and renewable electricity, but barriers exist to the application of nuclear power to merchant vessels. Pilot studies are planned for the early 2030s to assess the long-term feasibility of nuclear-powered ships. According to the DNV 2023 report, nuclear propulsion can be a competitive option if reactor costs are in the lower range of historical costs for land-based nuclear power plants. Accelerating the green shipping corridors Green shipping corridors can accelerate the use of carbon-neutral fuels by allowing barriers to be identified The continuing development of “green shipping corridors” will facilitate the application of decarbonisation strategies throughout the maritime value chain. A “green corridor” is a shipping route on which zero-carbon emissions ships and other emission reduction programmes are deployed, enabled by public and private actions and policies.  Green shipping corridors can accelerate the use of carbon-neutral fuels by allowing barriers to be identified and overcome in a more targeted and practical way, rather than on a global scale.  Wind-assisted propulsion and air lubrication systems Technologies such as wind-assisted propulsion and air lubrication systems can also play a role in the decarbonisation effort. Air lubrication reduces the resistance between a ship and the sea around its hull, thus lowering energy consumption. Other factors include digital tools, and fleet deployment and optimisation.  “The 2020s is proving to be the decisive decade for decarbonisation of shipping,” says Ovrum.  Decisions and strategies developed in the next few years will be decisive in meeting the 2030 and 2050 decarbonisation goals.  Ways to overcome challenges To meet the challenges, Ovum says shipowners should: Reduce energy consumption now; Consider all decarbonisation options; Focus on fuel flexibility; and  Consider long-term fuel strategies.