Navigating Green Methanol Certification: Key Considerations for 2025-2027 Projects
The conclusion of IMO MEPC 83 has established a clear regulatory pathway for sustainable fuel certification in maritime applications, providing much-needed direction for green methanol projects. However, project developers face significant questions regarding the integration and recognition of existing certification schemes-particularly ISCC-within this new framework.
According to the newly adopted guidelines, greenhouse gas emission factors and sustainability credentials must be certified through a Sustainable Fuel Certification Scheme (SFCS) approved by the IMO. The organization is expected to publish its list of recognized SFCS by March 1, 2027, with regular updates to follow. This timeline creates both uncertainty and opportunity for project developers.
Understanding the Certification Landscape
The ISCC system, operating under the EU Renewable Energy Directive, currently serves as one of the voluntary programs covering sustainability standards for agricultural and forestry biomass, waste-based fuels, and energy production. Its comprehensive framework includes detailed certification rules that have been extended to address renewable hydrogen and its derivatives, including criteria for renewable electricity used in RFNBO production and methodologies for calculating emissions.
The IMO's Life Cycle Assessment (LCA) Guidelines, updated in 2024, establish a broader framework covering all potential marine fuels and energy carriers. These guidelines address CO₂, CH₄, and N₂O emissions while introducing ten sustainability criteria and the innovative Fuel Lifecycle Label (FLL) for transparent emissions reporting.
Strategic Implications for Project Developers
Chinese green methanol projects currently in construction or nearing delivery face critical decisions regarding certification strategy. The fundamental question emerges: which framework should guide certification preparations-the emerging IMO SFCS requirements or the established ISCC system?
Projects at the feasibility stage have the advantage of incorporating both sets of requirements into their design, while those approaching delivery must prioritize immediate certification needs while maintaining flexibility for future compliance. The absence of finalized IMO SFCS details complicates these decisions, requiring developers to monitor regulatory developments closely while proceeding with available certification options.
Path Forward
Until 2027, project developers should:
Implement ISCC certification for market access and regulatory compliance
Align project documentation with IMO LCA Guidelines where possible
Maintain flexibility in record-keeping and verification systems
Engage with regulatory bodies to stay informed of SFCS development
The convergence of maritime and energy sustainability standards presents both challenges and opportunities. Projects that successfully navigate this transitional period will be well-positioned to capitalize on the growing demand for certified sustainable marine fuels.