Achieving Zero-Emission Shipping is Possible and Profitable

Shipping is the backbone of the global economy and the livelihood of billions of people. Enabling an interconnected global trade system, it supplies the entire planet with goods. From electronics to food and natural resources, the maritime transport sector facilitates economic growth, connects remote populations, and improves the quality of life around the world.

Approximately 90 per cent of global trade takes place through shipping, making it an essential lifeline for many communities. The ocean economy is responsible for over 100 million jobs, with a steadily expanding market. From 1995 to 2020, it grew 2.5 times, outpacing the 1.9-fold growth of the global economy.

The Climate Challenge

Reaching all corners of the globe, international shipping remains one of the most fossil fuel-dependent sectors of the global economy. As its emissions continue to rise, urgent action is needed to decarbonize the sector.

In 2023, the International Maritime Organization approved new targets for the sector. By 2030, five to ten percent of shipping fuels must be scalable zero-emission fuels (SZEF). With renewable fuels costing twice as much as fossil fuels, meeting these targets may be challenging. In addition, regulatory uncertainty slows investments, delaying the decarbonization of the sector.

“Demand for zero-emission shipping remains limited, while the broader policy environment continues to evolve without yet providing the certainty needed to unlock large-scale shifts. Without greater alignment across finance, regulation, supply, and demand, the tipping point envisioned for 2030 will remain out of reach”, said Dan Ioschpe, Climate High-Level Champion for COP30.

Our Ocean, Our Obligation, Our Opportunity

Shipping’s transition to net-zero is achievable, attractive to investors, and aligned with development goals. Investments must be directed toward zero-emission vessels and infrastructure, benefitting the entire supply chain.

In October, IMO’s net-zero framework and new fuel standard will be adopted, combining mandatory emissions limits and putting an economic cost on emissions to encourage reductions. This new arrangement is projected to generate up to USD12 billion annually, from 2028 to 2030, supporting the green transition.

Set to enter into force in March 2027, it will require swift action from governments at both national and regional levels to prepare for implementation.

Investment Opportunity

Decarbonizing shipping isn’t just about climate – it's a business opportunity. The COP30 Action Agenda highlights the shipping sector as crucial to linking ambition with resilience and long-term investment. A sustainable shipping activity offers opportunities not only to cut emissions but to unlock new sustainable value chains.

Alignment across finance, regulation, supply and demand is critical to achieving climate targets and unlocking economic benefits. With the opportunity to create up to four million jobs by 2050, the decarbonization of shipping represents a major economic opportunity across the supply chain while advancing a low-carbon future.

Momentum and Emerging Markets

Proving that the transition is possible and profitable, a growing number of near-zero-emission fuel projects are already underway. Significant port infrastructure developments are taking shape in emerging markets, building sustainable supply chains to decarbonize hard-to-abate sectors, such as the maritime industry.

In Brazil, Porto do Açu has become a sustainable hydrogen hub with renewable energy, low-carbon, and green hydrogen production.

“At the Port of Açu, we work with our partners to accelerate the development of low-carbon industrial projects, helping them reduce regulatory, operational, and demand risks. A key part of this strategy is the Hydrogen Hub, whose goal is to create an efficient ecosystem for the production and consumption of green hydrogen and its derivatives. The hub will host green ammonia and methanol production plants, fuels that will play a key role in implementing IMO's Net-Zero strategy”, said Eduardo Kantz, Porto do Açu Sustainability and Institutional Relations Director.

Namibia’s National Action Plan for Maritime Decarbonisation also aims to achieve net-zero emissions in the shipping sector by 2050. Industry leaders and the national government are working to scale up the production of green hydrogen and its derivatives, capitalizing on economic gains of the transition.

Call to Action: Time is Now

The renewed COP30 Action Agenda is the blueprint for implementation of climate solutions. The decarbonization of the maritime sector is one of the solutions to accelerating the transition of the energy, transport and industry systems - one of the six priority axes to advance implementation on the Global Stocktake and the Paris Agreement.

“The months ahead will be critical. We must convert ambition into delivery and ensure that international shipping is ready to meet the breakthrough target”, said Nigar Arpadarai, Climate High-Level Champion for COP29.

On the road to Belém and beyond, policy, coordination, and finance will be vital to building a sustainable shipping future, safeguarding the lifeline that connects economies worldwide.