Navigating the Future: Shipping Industry Poised for Major Decarbonization Investments

According to a recent publication by the International Maritime Association (IMO), Secretary-General Arsenio Dominguez has underscored the pressing need for ample investments in technology and choice fuels within the global shipping sector. This call to action was made during the Blue Economy Finance Forum held in Monaco on June 8.

The shipping industry is gearing up for a transformative shift towards net-zero emissions, wich will substantially affect supply chains, business models, ships, ports, and even the workforce involved in maritime operations. In April, new regulations aimed at reducing ship fuel emissions were approved by IMO and are set to be adopted this coming October.The urgency for investment in decarbonization efforts is becoming increasingly apparent.

“Regulations alone won’t suffice; we require technological advancements and alternative fuels,” Dominguez stated at the forum. “Investment is essential for these changes to materialize.” This includes ramping up production of alternative fuels that can replace approximately 350 million tonnes of fuel oil consumed annually by vessels.

Moreover, enhancing port infrastructure and bunker operations will be crucial to ensure that clean energy sources are available when ships dock worldwide. Christine Cabau-Woehrel from CMA CGM emphasized that this change demands collective effort across various ecosystems: “It’s going to be a long road ahead, but we aim to lead.”

Some companies are already making strides toward sustainability.The World Shipping Council reports that around 200 container ships currently operate on zero or near-zero emission fuels (ZNZ). Moreover, nearly 80% of new orders for container vessels will feature hybrid capabilities.

“The liner industry has poured $150 billion into decarbonization efforts—an unprecedented move within transportation,” noted Joe Kramek from the World Shipping Council. “Though,securing a reliable fuel supply remains critical; it presents an enormous investment opportunity.”

The newly introduced “IMO Net-Zero Framework” adopts a dual approach: establishing global standards limiting greenhouse gas intensity in marine fuels while imposing costs on GHG emissions from ships. These regulations not only signal demand for cleaner fuel options but also reward early adopters who venture into low- or zero-emission technologies.

This framework complements previous IMO initiatives aimed at improving energy efficiency through better ship design and operational practices—these measures will undergo reviews every five years with progressively stricter emission limits.Dominguez pointed out that these regulations apply universally to all international ocean-going vessels nonetheless of their flag state. Additionally, there’s an anticipated need for training as nearly half a million seafarers may require upskilling by 2030 due to these changes.

He urged global stakeholders to transition from mere commitments toward actionable steps: “We’ve been advocating concrete actions at IMO for over ten years now,” he said confidently about upcoming demonstrations planned for October.

In closing his remarks, Dominguez highlighted an crucial truth: “Decarbonization comes with costs—we’ve already invested heavily in polluting our planet; now it’s time we invest in its restoration and sustainability for future generations.”