Shipping Industry Pushes Ahead with Green Investments Despite Global Carbon Price Delay

Despite a one-year delay to a global carbon price proposal, the shipping industry is forging ahead with billions of dollars in emissions-reducing investments. Regional regulations, long investment lead times, and expectations of a continuing trend towards decarbonisation are driving companies to stay on course. In fact, a Reuters analysis of vessel delivery data through 2028 shows that orders of ships capable of running on alternative fuels dominate new shipbuilding. This shift is driven by the industry's goal of achieving net-zero emissions by or around 2050.

["The shipping industry's biggest players are shrugging off opposition to a global carbon price and are investing heavily in emissions-reducing measures, including dual-fuel vessels and onboard energy-saving devices. Companies have invested over $150 billion in dual-fuel vessels, with 1,126 ships now either delivered or on order. This marks an increase of 28% compared to the previous year, indicating that newbuilding orders for lower-emission fuel vessels continue even after the IMO delay.", ["Analysts and industry observers initially warned that the absence of a global framework added complexity to companies' planning and could cause some to pause their green investments. However, most shipping companies told Reuters that regional regulations, long investment lead times, and expectations of a continuing trend towards decarbonisation all argued in favour of staying the course. The one-year carbon price postponement is unlikely to rattle customers, who generally take a 30-year investment perspective.", ["The European Union's FuelEU Maritime regulation makes a business case for greener fleets, ship owners and fuel suppliers said. And the EU Emissions Trading System and voluntary initiatives provide further incentives. Ship owners with dual-fuel vessels will likely use them on EU voyages to avoid paying penalties for failing to achieve lower emissions, and some should also receive rewards for over-compliance.", ["Major Horn of Africa port Djibouti and OPEC member Gabon have also introduced levies on maritime emissions. And current momentum could see punitive regulations and incentive schemes introduced in other important shipping hubs soon. Britain has proposed to expand its emissions trading system to international shipping from 2028, while Turkey is considering a scheme similar to the EU's.", ['Investments in new marine fuels are also moving ahead. Companies like CMB.Tech and Mitsui O.S.K. Lines are continuing investments in ammonia bunkering and production. Maersk has ordered LNG-fuelled ships and is testing ethanol as an alternative, while NYK Group reaffirmed its emissions reduction strategy after the IMO decision.', ['The commercial drivers still remain, despite recent regulatory uncertainties,']]]]]]