Shipowners do not need to choose a single path, as both retrofitting existing vessels and investing in new ships are considered complementary strategies for meeting strict European environmental regulations. According to the authors of the newly released report, a combined approach allows companies to balance immediate cost savings with long-term carbon reduction goals. This dual-path strategy is expected to remain essential as rules regarding maritime emissions continue to tighten through 2026 and beyond.
The report states that “The market does not have to chose between retrofit and newbuild – both are complementary.” Furthermore, the study notes that “Shipowners are increasingly opting for a dual-path approach, balancing retrofit investments today with green fleet renewal tomorrow.”
In simple terms, this means that instead of picking just one method, successful shipping companies are doing both. Retrofitting—which involves adding new technology like fuel-saving devices or exhaust cleaners to older ships—is a relatively cheap and fast way to meet current laws without the massive expense of a new vessel. On the other hand, ordering brand-new ships ensures that a company’s fleet is ready for much stricter future rules, even though these ships take years to build and cost much more upfront. By using both methods, companies can save money now while slowly replacing their older ships with cleaner, more efficient models over time.
The report ‘Shaping 2026: Energy · Infrastructure · Transport’ was published by the international law firm Watson Farley & Williams in Germany in January 2026. Prepared by a senior team led by Dr. Christian Finnern, Dr. Malte Jordan, and Dr. Christian Bauer, the study provides a comprehensive roadmap for navigating the country’s shifting regulatory and investment landscape.
