Thought Leadership

Decarbonization of the Maritime Sector

By 2050, the International Maritime Organization (IMO) aims to cut down total GHG emissions by at least 50% compared to 2008, and to take efforts and implement strategies for achieving net zero (IMO, 2018). These targets also guide the global policies and industry priorities to be able to align with the decarbonization goals of the maritime sector. As part of broader climate strategies under the EU Fit for 55 packages, another initiative, Global Carbon Pricing Initiatives of the European Union, is also advancing the inclusion of shipping GHG emissions into its Emissions Trading System (ETS) (European Commission, 2021).

Maritime fuel price is yet another issue needed to be addressed and countries like New Zealand and Canada are exploring the flexibilities in carbon pricing for maritime fuels (CPLC, 2020). Norway implemented incentives for electric and zero-emission ferries, through Regional & National Policy Actions. On the other hand, Japan is also promoting hydrogen fuel research for shipping (DNV, 2022) and the United States is developing stricter emission standards aligned with IMO goals (EPA, 2021).

Science Based Targets for the Maritime Sector

The SBTi developed the Science based Targets setting guidance for the maritime sector and it is the first framework in the world for the maritime sector to establish near term and long-term targets in alignment with 1.5°C. The guidance is for companies that own, operate and charter sea vessels and companies whose value chain include maritime sector. It provides information on how to measure GHG emissions, define target boundaries, and set decarbonization targets for companies in the maritime sector.

The guidance also introduces maritime-specific emission intensity metrics such as emissions per tonne nautical mile and well-to-wake carbon intensity. Companies operating in maritime sector must measure whole operational and value chain GHG emissions including the following:

Scope 1: Direct emissions from vessels due to fuel combustion

Scope 2: Purchased electricity (ports, facilities)

Scope 3: Supply chain emissions from fuel production to logistics operations.

Key Decarbonization Pathways for Achieving Maritime sustainability

Achieving maritime decarbonization will require a combination of technological innovation and operational improvements:

• Alternative fuels: LNG, methanol, ammonia, hydrogen, and biofuels are emerging as lower-carbon alternatives to traditional marine fuels, though each comes with cost and scalability challenges.

• Vessel efficiency: Improvements in ship design, propulsion systems, and hull technology can significantly reduce fuel consumption.

• Digital optimization: AI-driven route planning and predictive maintenance can cut emissions by improving operational efficiency.

• Port and infrastructure changes: Shore power, electrification, and cleaner port operations are essential to reducing emissions at key logistics hubs.

Emerging technologies such as battery-powered vessels, wind-assisted propulsion, and autonomous ships also show promise, though most are not yet widely deployed at scale.

The Role of Finance and Collaboration

Decarbonization will depend not only on technology but also on coordinated policy and investment. Green finance initiatives, such as the Poseidon Principles, are linking funding to emissions performance, while international efforts like green shipping corridors aim to accelerate low-carbon trade routes.

Conclusion

The maritime sector’s GHG emissions, primarily from large containers and bulk ships, represent a climate challenge equivalent to a major industrialized nation and immediate action and intervention through financial, technological, and legal intervention is needed. However, increasing regulatory and technological efforts, including international agreements to reduce fuel emissions and transition to low and zero carbon fuels, highlight that the maritime sector can be steered toward a net-zero future by around 2050. With required efforts in terms of coordinated global policy, innovation in alternative fuels and propulsion systems, and robust investment to align shipping with broader climate goals, decarbonization of maritime sector will still be a complex task with collaboration between governments, industries, and financial sectors. Technological innovation and regulatory frameworks must evolve together to meet climate targets (UNFCCC, 2022).

A longer version of this article was first published on the InCorp website.