Accelerating zero and low emission technologies in hard-to-abate sectors

Decarbonization of the maritime sector

International shipping consumes around 300 Mt of fossil fuels annually, accounting for approximately 3% of global GHG emissions. If it were a country, it would rank as the 6th largest emitter, between Germany and Japan. Decarbonizing shipping in line with the climate targets of the IMO 2023 GHG Strategy requires a transition from fossil fuels to zero- and near-zero GHG fuels, technologies, and energy sources.

Axis: Transitioning Energy, Industry, Transport

Key Objective: Accelerating zero and low emission technologies in hard-to-abate sectors

Why it matters

Decarbonizing shipping can deliver significant economic and climate benefits. The IMO Net-Zero framework is the first in the world to combine mandatory emissions limits with GHG pricing across an entire industry sector. It has the potential to unlock an estimated USD 1 trillion in investments in new fuel production, supply chains, and new or retrofitted vessels, while creating up to four million cumulative green jobs by 2050 across the entire energy value chain. Projections indicate that the maritime sector could represent around 15% of the future green hydrogen market. The IMO Net-Zero Fund is expected to generate USD 10–12 billion per year to support a just and equitable transition for developing countries, as well as to finance innovation, infrastructure, capacity building, and measures to mitigate negative impacts, such as on food security.

1) The IMO Net Zero Fund is projected to generate $11-12 billion per year until 2035

2) Create up to four million cumulative green jobs by 2050

3) Around USD 1 trillion investments needed to decarbonize shipping

4) 5 million tonnes of green hydrogen are needed to achieve 5% zero emission fuels by 2030 reaching 90MT by 2040.

UCL, 2025, An overview of discussions of IMO’s 83rd session of the Marine Environment Protection Committee

GMF, 2024, Green jobs and Maritime Decarbonisation

GMF, 2020 Scale of investment needed to decarbonise shipping

RMI, 2024 Green Hydrogen and Green Shipping Call to Action