Shipping accounts for roughly three percent of global greenhouse gas emissions. However, its role in global trade makes it a critical sector in achieving climate targets. In recent years, the focus has shifted from setting ambitions to practical implementation – and at the same time, the discussion has moved from being technology-driven to increasingly financial in nature.
REGULATION IS RESHAPING THE ENTIRE VALUE CHAIN
The International Maritime Organization( IMO) has defined the long-term direction of the sector towards net-zero emissions by around mid-century. In practice, this means a new regulatory framework combining mechanisms that control the greenhouse gas intensity of marine fuels with economic incentives and penalties.
At the same time, the European Union Emissions Trading System( EU ETS) and FuelEU Maritime regulation have already introduced a direct carbon price for shipping. This has significantly changed investment calculations across the industry. Emission reduction is no longer only an environmental consideration, but a factor that directly affects operating costs.
THE FUEL RACE CONTINUES WITHOUT A CLEAR WINNER
Alternative fuels – including methanol, ammonia, bio-LNG, and synthetic e-fuels – continue to compete for a role in the future energy mix of shipping. No single global standard is in sight, which is pushing shipowners towards flexible solutions, often based on dual-fuel designs.
Methanol has advanced rapidly in practical adoption, largely because its handling and supply chain are relatively straightforward compared to many other alternatives. Ammonia, on the other hand, is widely viewed as a long-term solution, particularly for deep-sea shipping, but its deployment requires significant investment in safety systems and bunkering infrastructure.
ENERGY EFFICIENCY: THE LARGEST AND OFTEN UNDERESTIMATED EMISSIONS REDUCTION POTENTIAL
While much of the attention is focused on fuels, a significant share of near-term emissions reductions will still come from energy efficiency improvements. Industry estimates commonly suggest that individual technologies typically deliver fuel savings in the range of 5 – 25 percent, although the actual impact depends heavily on vessel type, route, and operational profile.
For example:
• air lubrication systems can typically reduce fuel consumption by around 5 – 10 percent
• rotor sails and other wind-assisted propulsion technologies can deliver savings of approximately 5 – 20 percent in optimal conditions on longhaul routes
• hull and propeller optimisation, along with other hydrodynamic improvements, can together provide around 5 – 15 percent efficiency gains
• digital voyage optimisation and operational performance management can contribute a few additional percentage points, often at relatively low cost
Individual solutions alone do not transform the overall picture, but their combined effect can be significant. In practice, this is often referred to as a“ technology package”, where the cumulative impact of multiple measures can exceed the effect of any single solution.
Overall savings can, in the best cases, rise well above 20 percent, and in some scenarios where multiple technologies are combined, even approach 30 – 40 percent. However, these effects are not directly additive.
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Individual solutions alone do not transform the overall picture, but their combined effect can be significant.
20 seatec 2 / 2026