Sustainable Fuels for Shipping by 2050
The biggest transformation in the history of shipping is here. Shipping is the ‘engine room’ of the global economy, transporting more than 80% of world trade. With such a large economic impact comes an equally heavy environmental footprint – around 2% of global emissions, which is equivalent to the annual emissions of Japan. Without action, these emissions could rise by around 45% by 2050, even as emissions from other sectors shrink.1 This trajectory is not going unnoticed. In 2023, the global shipping industry came together for the first time at the IMO’s MEPC 80 to plot a course to achieve net zero shipping by mid-century. This means that in just 25 years – the lifetime of a single vessel – shipping must eliminate its entire contribution to climate change. Adding to the pressure for change, shippers of goods are demanding more sustainable transport to meet their own climate goals. The number of companies approving emissions reduction targets in line with the Paris Agreement more than doubled every year between 2017 and 2021, with 96% adopting targets that cover supply-chain emissions.
