The Energy Efficiency Design Index (EEDI) was introduced as a regulatory tool employed at the ship design phase to reduce the carbon dioxide (CO2) emissions and increase the vessel’s operational efficiency. Although it stimulated the greening of the shipping operations, its effectiveness is considerably criticised from various shipping industry stakeholders. The aim of this study is to investigate the EEDI effectiveness on accurately representing the environmental performance of the next-generation ships power plants for two representative ship types, in specific, an ocean-going tanker and a cruise ship. The performance of the optimal power plant solutions identified in previous studies is analysed according to the existing EEDI regulatory framework and compared with the lifetime CO2 emissions estimated based on an actual operating profile for each ship. The results indicate that the EEDI underestimates the effect of technologies for reducing carbon emissions in all the investigated cases. In this respect, it is concluded that EEDI is classified as a conservative metric, which however can be used as an approximation to compare alternative solutions early in the design phase.