Columbia Group welcomes UK-EU alignment on ETS but warns it is not a silver bullet for emissions cuts

Columbia Group has welcomed the UK government’s announcement to link its emission trading system with the EU and is urging other countries to follow suit.

Philippos Ioulianou, Managing Director of EmissionLink, member of Columbia Group, believes this move is a milestone moment in the journey of decarbonisation and shows real progression in reducing regulatory fragmentation, particularly for cross-border shipping operations.

Columbia Group is now urging the maritime industry to adopt a more strategic approach to decarbonisation, but warns that linking emissions trading schemes does not guarantee emissions reductions. The recent move to join the UK ETS with the EU has resulted in an 8% rise to carbon prices, but Mr Ioulianou says this will be a temporary rise with prices going back down eventually.

He said “The idea that linking ETS schemes alone drives significant cuts is a misconception. We’ve seen a price increase since the EU-UK link-up, but no guaranteed emission drop. Market tools must be backed by clear targets, regulatory support, and real-world actions.”

Whilst the UK-EU alignment offers much-needed certainty and supports stronger business cases for green investment, the global picture remains fragmented. Shipping companies, for example, must comply with multiple overlapping frameworks, including the International Maritime Organisation’s Carbon Intensity Indicator (CII), the EU ETS, and FuelEU Maritime regulations, all with separate reporting systems. Energy-intensive industries face similar hurdles when trading in the US and Asia.

“These overlapping obligations lead to confusion, duplication, and inefficiency,” says Mr Ioulianou. “But they also highlight the urgent need for greater international coordination. What we often see in shipping is a race to comply with the latest regulation, instead of following a clear, long-term decarbonisation plan. We need to stop chasing policies and start leading with a strategic direction toward net zero.”

With the IMO’s NetZero Act under discussion, Columbia Group is calling for national schemes to integrate into a global system. “We must all recognise the energy transition comes with a high cost, but also with high stakes. Collaboration is no longer optional, it’s essential”, added Mr Ioulianou.