The urgency of finding solutions to the climate change problem is growing as a top priority for both domestic and international policymakers. Around a quarter of the world’s greenhouse gas (GHG) emissions are linked to international trade, according to the most recent estimates. As the lifeblood of global trade, the shipping sector faces significant challenges in decarbonizing due to its diversity, which ranges from ferries to massive tankers, as well as the fact that clean fuels such as green hydrogen, ammonia and methanol are not yet available at scale.
The shipping industry is currently in an ongoing transition towards decarbonization. Many market actors are accentuating their focus on modern and greener ship designs, operations, alternative fuels, energy efficiency and
carbon capture technologies. Green financing, environmental, social and governance (ESG) reporting and European Union (EU) taxonomy are just a few examples of mechanisms that were previously downplayed by the industry and have now become increasingly widespread.