Shipping companies like Maersk and Evergreen are adapting to the changing climate by transforming their operations. They are taking steps to reverse the course of the ocean liner industry.
Shipping companies like Maersk and Evergreen are adapting to the changing climate by transforming their operations. They are taking steps to reverse the course of the ocean liner industry.

The Shipping Industry’s Journey Towards a Greener Future
The shipping industry, responsible for around 3% of global greenhouse gas emissions, has been given a wake-up call to address its environmental impact. However, there is reason for optimism as the industry takes steps towards a cleaner and more sustainable future. Recent developments, including a new climate strategy agreed upon by the International Maritime Organization (IMO) and the implementation of stricter European Union rules, are driving this change.
A Clearer Direction for the Future
While the IMO’s new climate strategy may not have set explicit fuel standards, it does suggest a move away from environmentally harmful heavy-sulfur fuel oil. The goals outlined in the strategy include reducing greenhouse gas emissions by at least 20% by 2030 and reaching net-zero emissions by 2050. Additionally, the IMO plans to implement a greenhouse gas emissions-pricing mechanism and develop a goal-based marine fuel standard.
Although the strategy leaves room for interpretation, it provides the maritime industry with an opportunity to shape its own direction. Several large ship owners and operators have already begun investing in alternative fuel sources like methanol, liquefied natural gas (LNG), and hydrogen. Maersk, one of the world’s largest shipping companies, has ordered a dual-fuel vessel powered by green methanol, and Evergreen has ordered 24 dual-fueled methanol ships. These investments demonstrate a shift towards greener fuels and a commitment to reducing emissions throughout the entire fuel production process.
Building a Sustainable Supply Chain
While the adoption of alternative fuels is a promising step, the industry also needs a reliable supply chain to support dual-fueled vessels. Currently, there are only a limited number of ports worldwide equipped with the necessary infrastructure for alternative fuels. However, with companies like Maersk and Evergreen increasing their demand for green methanol and LNG, the industry is driving the development of the required supply chain. Japan has already launched its first dual-fueled LNG bunkering ship, which serves as a floating gas station and aims to support the supply of LNG fuel.
The growth of this supply chain is crucial to ensure the availability and accessibility of alternative fuels, making the transition to greener technologies more feasible for the shipping industry.
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Navigating Compliance and Challenges
The new IMO strategy is nonbinding and emphasizes compliance when “national circumstances allow.” This means that no nation-state will be legally obligated to comply with the goals. However, many countries, including the United States, United Kingdom, Australia, and those in the European Union, are expected to work towards meeting the strategy’s objectives. The European Union, for example, is already planning to implement a carbon levy on shipping starting in 2024.
The inclusion of the phrase “national circumstances” acknowledges the challenges that some countries may face in meeting the emission standards. It also addresses opposition to a carbon levy, which can help alleviate concerns and ensure wider acceptance of the strategy.
Counting the Costs
While the industry’s commitment to sustainability is commendable, it comes at a price. The use of alternative fuels such as green methanol can be significantly more expensive compared to traditional fuels. Estimates suggest that green methanol costs three times as much as low-sulfur fuel oil. This cost increase poses a challenge for shipping companies, who will need to pass these expenses onto cargo owners and ultimately the consumer.
Additionally, the EU Emissions Trading System will soon impose costs on shipping lines that fail to reduce their emissions. This system will cover all cargo and passenger ship voyages in EU waters and ports, regardless of where the ship is registered. The increased operating costs for the global shipping fleet are projected to amount to nearly $19 billion, according to Hecla Emissions Management.
Ultimately, consumers will bear the brunt of these additional costs, as they will be passed along by cargo owners to maintain profitability.
Moving Towards a Greener Future
Despite the challenges and costs involved, the shipping industry is taking significant steps towards a more sustainable future. The IMO’s climate strategy, along with stricter EU rules, is pushing companies to invest in greener technologies and fuels. The industry’s willingness to set its own direction and the growing demand for alternative fuels are driving the development of a sustainable supply chain. While compliance with the strategy is not mandatory, many countries are expected to work towards achieving the emission reduction goals.
The journey towards a greener shipping industry may be long and challenging, but the industry’s commitment and progress inspire optimism. As consumers, we play a crucial role in supporting these changes. By understanding the costs associated with sustainability efforts, we can appreciate the importance of sustainable shipping and contribute to a cleaner future for the maritime industry and the planet as a whole.