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GMF outlines energy transition to enable early uptake of scalable zero-emission bunker fuels

‘A combination of a pricing mechanism, revenue disbursement and a global fuel standard is required to achieve such a transition in an efficient, just, and equitable way,’ says Global Maritime Forum.

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Global Maritime Forum on Thursday (18 January) released its second insight brief following International Maritime Organization’s (IMO) Revised Greenhouse Gas (GHG) Strategy that discusses how various elements from the proposed IMO policy measures can enable an efficient, just and equitable energy transition.

With the upcoming debates at the IMO’s Marine Environment Protection Committee (MEPC) shaping further development of the measures under the IMO’s Revised GHG Strategy, the brief outlines the importance and requirements of a transition that enables an early uptake of scalable zero-emission fuels. 

“A combination of a pricing mechanism, revenue disbursement and a global fuel standard is required to achieve such a transition in an efficient, just, and equitable way,” it said. 

The brief, titled Unravelling IMO policy measures towards a just and equitable energy transition, zooms in on how different elements of these measures can contribute to the Strategy’s broader objectives of promoting an energy transition as well as enabling a just and equitable transition.

Energy Transition

In terms of the energy transition, the industry faces two basic scenarios for its energy transition: an incremental transition and a two-speed transition. The latter allows for learnings from early adopters to help reduce costs, develop skills and labour force, and incrementally develop the new energy supply chains and infrastructure, as well as reduce the risk of stranded assets. Several elements in the policy measures can support delivering on this objectives:

GHG Pricing Mechanism:  If the GHG price and/or any revenue using a subsidy regime is not targeted at SZEF use, it could end up only stimulating transition technologies and driving an incremental energy transition. A GHG pricing mechanism could provide the certainty and strong signal needed to achieve a rapid ramp-up in investments across the sector. Even with a high price and high revenue use, there is no guarantee or mandate for lower GHG intensity operation, which could increase investment uncertainty. Therefore, a price and revenue mechanism should be combined with a technical measure.

Regulating GHG Intensity: Command-and-control measures such as a Global Fuel Standard (GFS) mandate progressive reductions in fuel or energy GHG intensity over time, supporting the energy transition by setting clear requirements and a more predictable emissions reduction pathway. A fuel standard should directly impact the shipowners’ and fuel suppliers’ choices, as the GFI limit first makes operation solely on incumbent fossil fuel non-compliant, until near-zero and zero-emission fuels become the only compliant fuel choice (by around 2040). Nevertheless, it is likely to stimulate an incremental transition and requires a GHG price and revenue disbursement mechanisms to enable a two-speed transition.

Flexibility Mechanisms: flexibility comes with the cost of added complexity (both for administrators and the sector’s value chain), and could risk increased uncertainty for the timing of the business case for investment as, for example, the likely behaviour by shipowners in relation to flexibility will need to be factored into decision making.

Just & Equitable Transition

To enable a just and equitable transition, it is crucial to recognise that such a transition has varying implications for individual nations as policy changes and climate change impacts have different impacts on different states. Several elements on the table can contribute to such a transition:

Flexibility Mechanisms: Flexibility mechanisms in the policy measures could help support a just and equitable transition but also risk undermining the effort. For example, route exemptions risk leaving the exempted regions behind and reduce incentives for investing in zero-emission technologies there. Furthermore, a risk exists that the benefits of exemptions won’t accrue to the exporting countries in the Global South.

Revenue disbursement: Revenue disbursement from the policy measures is required to enable a just and equitable transition. Revenues can, in particular, address the disproportionate negative impacts of measures, support in-sector mitigation in developing countries and unlock global opportunities for fuel production, support technology and knowledge transfer between developing and developed countries, and support vulnerable countries in their adaptation and mitigation efforts.

Conclusion

A two-speed energy transition is the most likely means to deliver on the strategy in a cost-effective, just, and equitable way. Any one measure currently on the table (GFS or GHG pricing) might achieve the strategy’s GHG reduction targets but this depends on their scope, clarity, and stringency. However, to deliver on the objectives of stimulating early adoption of scalable zero-emission fuels, ramping-up use of such fuels in towards 2040, and enabling a just & equitable transition, requires a combination of a GHG pricing mechanisms, a global fuel standard based on well-to-wake, and revenue disbursement mechanisms.

As the IMO progresses through the finalisation of measures, the focus on achieving an energy transition and ensuring a just and equitable path forward remains paramount. The upcoming debates and discussions at MEPC 81 and MEPC 82 will be crucial in shaping the implementation of these measures, and the shipping industry’s commitment to sustainable practices will be closely monitored as it strives to meet the ambitious targets set forth in the IMO’s Revised GHG Strategy.

Note: Read the full insight brief titled ‘Unravelling IMO policy measures towards a just and equitable energy transition’ here.

 

Photo credit: william william on Unsplash
Published: 23 January, 2024

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Alternative Fuels

MPA and MSC ink MoU to support adoption of alternative bunker fuels

MPA and MSC will explore new routes and services to strengthen connectivity, support the adoption of alternative marine fuels such as bio-LNG, and advance technologies to improve vessel energy efficiency.
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MPA and MSC ink MoU to support adoption of alternative bunker fuels

The Maritime and Port Authority of Singapore (MPA) on Wednesday (3 June) said it signed a Memorandum of Understanding (MoU) with MSC Mediterranean Shipping Company to strengthen collaboration in maritime decarbonisation, digitalisation, innovation, and manpower development. 

The MoU was signed on 25 May 2026 by Mr Ang Wee Keong, Chief Executive of MPA, and Mr Soren Toft, Chief Executive Officer of MSC.

The MoU underscores the shared commitment of MPA and MSC to foster a sustainable, digital, and future-ready maritime sector, while enhancing MSC’s operational and business activities in Singapore. This year also marks the 30th anniversary of MSC establishing its Asia Regional Office and local office in Singapore.

Under the MoU, MPA and MSC will explore new routes and services to strengthen connectivity, support the adoption of alternative marine fuels such as bio-LNG, and advance technologies to improve vessel energy efficiency and operational performance.

MPA and MSC will also collaborate on maritime digitalisation initiatives to improve operational efficiency, including streamlining vessel arrivals and port operations. 

On manpower development, MSC will support internship and scholarship opportunities through Singapore Maritime Foundation’s Maritime Outreach Network (MaritimeONE) platform, an industry-led tripartite partnership comprising industry, government and institutes of higher learning that aims to raise awareness of the maritime industry and attract quality talent into the maritime sector.

Mr Ang Wee Keong, Chief Executive of MPA, said: “This partnership reflects the strong collaboration between MPA and MSC in driving sustainability and digitalisation in the maritime sector. By working together on decarbonisation, operational efficiency and talent development, we aim to strengthen Maritime Singapore’s position as a trusted and future-ready global maritime hub.”

Mr Soren Toft, Chief Executive Officer of MSC, said: “Singapore is a strategically important hub for MSC and a key gateway to the broader Asia region. As we mark 30 years in Singapore, this MOU reinforces our long-term commitment to strengthening our presence here. MSC and Singapore are closely aligned on the priorities shaping the future of global shipping, and we look forward to deepening this partnership to drive the continued growth and resilience of the maritime industry.”

 

Photo credit: Maritime and Port Authority of Singapore
Published: 4 June, 2026

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Methanol

Seaspan and Hapag-Lloyd complete first of five methanol vessel retrofit

Following “Seaspan Yangtze”, the remaining vessels planned for retrofit under the methanol retrofit programme are “Seaspan Amazon”, “Seaspan Ganges”, “Seaspan Thames”, and “Seaspan Zambezi”.
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Seaspan and Hapag-Lloyd complete first of five methanol vessel retrofit

Seaspan Corporation (Seaspan) and Hapag-Lloyd on Wednesday (3 June) announced the successful completion of the first of the five vessel conversions under their methanol retrofit programme with the delivery of Seaspan Yangtze.

From the early SAVER (Seaspan Action for Vessel Energy Reduction) programme to today’s CleanBlue initiative, Seaspan has committed over USD 230 USD million across 86 vessels, executing more than 550 efficiency and retrofit projects.

Following Seaspan Yangtze, the remaining vessels planned for retrofit under the programme are Seaspan Amazon, Seaspan Ganges, Seaspan Thames, and Seaspan Zambezi. Each retrofit is expected to reduce well-to-wake CO₂e emissions by approximately 30,000 to 50,000 metric tonnes per vessel annually when operating on low-carbon methanol, while also extending vessel lifespan and enhancing fuel flexibility.

“Decarbonisation is not just about building the fleet of tomorrow, it is also about unlocking the full potential of the fleet we have today. Retrofitting and upgrades on existing fleets play a practical, immediate, and economical role in accelerating shipping’s decarbonization journey,” said Bing Chen, Chairman, President and CEO of Seaspan. 

“Project SAVER CleanBlue highlights Seaspan’s strong customer partnerships, deep technical expertise, and unique platform integrated with JV partners, such as WattSpan Maritime Technology, in executing complex and large-scale retrofit projects.”

“The successful conversion of the Seaspan Yangtze together with the planned retrofit of its four sister vessels is another important step on our ambitious path towards net-zero fleet operations by 2045,” said Silke Lehmköster, Managing Director, Fleet, Hapag-Lloyd. 

“Together with Seaspan, we are demonstrating that retrofitting existing vessels for low-carbon methanol can be a practical way to reduce emissions in shipping.”

 

Photo credit: Seaspan
Published: 4 June, 2026

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Nuclear

South Korean-led nuclear car carrier design secures LR backing

LR is working with HHI, KSOE, Hyundai Glovis, G- Marine Service and KAERI on a joint development project exploring an advanced small modular reactor (SMR) installation on a PCTC.

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South Korean-led nuclear car carrier design secures LR backing

Classification society Lloyd’s Register (LR) on Tuesday (2 June) said it has teamed up with South Korean shipbuilding, marine services and nuclear research organisations to advance the development of a nuclear‑assisted car carrier concept. 

LR is working with Hyundai Heavy Industries, Korea Shipbuilding & Offshore Engineering (KSOE), Hyundai Glovis, G- Marine Service and the Korea Atomic Energy Research Institute (KAERI) on a joint development project (JDP) exploring an advanced small modular reactor (SMR) installation on a pure car and truck carrier (PCTC). 

The study focused on how a Molten Salt Reactor (MSR) could be physically and operationally integrated into a large vehicle carrier. Work examined the internal arrangement and segregation of the reactor system, shielding requirements, and the impact on cargo deck layout and vehicle capacity, alongside stability and trim implications linked to the reactor’s weight and positioning. 

The partners also assessed propulsion system configuration and power delivery, as well as operational flexibility compared with conventionally fuelled PCTCs, where trade routes and port calls can be tightly constrained. 

A key focus of the project has been safety. LR led hazard identification (HAZID) and preliminary risk assessment work, focusing on containment, onboard safety systems and potential operability constraints tied to nuclear technology at sea. 

The partners will mark the project milestone with an Approval in Principle (AiP) granting ceremony on 2 June at the LR stand during Posidonia 2026. 

Sung-Gu Park, President – North East Asia, Lloyd’s Register, said: “While nuclear propulsion is still at an early stage of development, this project shows the importance of building technical understanding now to support future progress. 

“Establishing feasibility at concept stage is a valuable step forward, particularly in areas such as cargo optimisation, vessel stability and integrated safety design.” 

Hong-Ryeul Ryu, CTO and Senior Executive Vice President at HD HHI, said: “With global environmental regulations becoming increasingly stringent and no definitive net-zero fuel yet available, SMR-powered ships can serve as a highly effective alternative, representing a pioneering next-generation maritime technology capable of complying with GHG emission regulations while allowing lifetime operation without refuelling, and HD HHI will remain at the forefront of sustainable maritime technology development.”

 

Photo credit: Lloyd’s Register
Published: 4 June, 2026

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