Support the development of clean propulsion technologies and low-carbon shipping fuels

Supporting the development of clean propulsion technologies and low-carbon shipping fuels is key to innovate and decarbonize this mode of transport. The most viable near-term options consist of low- and net-zero carbon fuels, such as biofuels, low-carbon methanol and ammonia, and other synthetic fuels. All these come with unique challenges related to availability, sustainability, cost and safety. Low-carbon methanol is a more readily available option than other alternative fuels and has been one of the main choices, alongside biofuels, in shipping companies’ decarbonization plans.

Policymakers can offer more supply-side subsidies to tackle high feedstock cost, often seen as one of the biggest constraints. Other options such as retrofitting sails for large cargo ships and other propulsion modes remain at a far earlier stage of development, despite their long-term potential. Governments could therefore fund research and development (R&D) programs to accelerate deployment and commercialization. Overall, decarbonizing the shipping sector requires coordinated action among suppliers of low-carbon shipping fuels, vessel and engine manufacturers, ports and policymakers to establish clean shipping routes.