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Shipping firms lose momentum on greener fuels due to high costs

A Financial Times-cited survey says shipping companies have effectively stopped efforts to diversify from hydrocarbons because hydrogen and other alternatives remain too expensive.

Reported · Written up by our desk · Energy

The shipping industry is under pressure to cut emissions, which activists and policymakers say come largely from the petroleum fuels it uses. Shipping accounts for about 3% of global carbon dioxide emissions, and proposals such as a carbon tax on ships have been discussed as one way to drive a shift to lower-emissions alternatives.

While the International Maritime Organization shelved a carbon tax proposal last year, it revived the idea this year after lobbying by the United States and Saudi Arabia. However, a Financial Times-cited survey suggests the renewed carbon tax push has not translated into broader adoption of alternative fuels.

According to the report, shipping companies have largely moved away from plans to diversify from hydrocarbons because potential replacements such as hydrogen and other options have stayed prohibitively costly. The outlet attributes the findings to the International Chamber of Shipping’s latest Maritime Barometer report.

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