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Energy Transitions Commission: Unlocking the first wave of zero-emission shipping

Report calls to attention to five key actions first movers can take to make tangible progress towards zero-emission pilots over the next three to four years.

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The Energy Transitions Commission, a global coalition of leaders from across the energy landscape committed to achieving net-zero emissions, on Thursday (12 November) published a new report that catalogues the barriers to the early adoption of zero-emission technologies throughout the entire energy value chain.

More importantly, the Commission said the report calls to attention to five key actions that first movers can take to make tangible progress towards zero-emission pilots over the next three to four years:

  1. Join forces to fast-track technology trials and regulatory approvals
  2. Choose pilot locations that offer privileged access to low-cost renewable electricity
  3. Seize opportunities to repurpose and retrofit existing infrastructure and assets
  4. Co-invest in critical equipment such as bunkering assets and vessels
  5. Form consortiums with key value chain actors to establish voluntary offtake agreements and distribute cost across the value chain to the end-consumer

 Renewable electricity for the production of green hydrogen represents the largest share of the total pilot cost for the ammonia and methanol fuel pathways that the report explores. 

First movers can lower electricity cost at the outset by selecting the right geographical locations for the energy production and by entering into long-term corporate purchase power agreements to secure large volumes of clean power at the lowest costs.

Though first movers will have to contend with higher investment and operational costs, the report shows that this can be mitigated through a green fuel premium, which would help distribute the additional cost throughout the value chain up to the end-consumer.

“Despite the higher business to business costs of operating zero-emission vessels, the impact on end consumer prices is likely to be limited. The increase in the cost of a high-end athletic shoe will represent around 0,5-1% of the total cost,” said Michael Parker, Chairman, Global Shipping, Logistics & Offshore, Citi and Co-Chair of the Getting to Zero Coalition’s Motivating First Movers workstream.

To deploy zero-emission vessels globally, the Commission said new and existing stakeholders will need to work together in creating a new green shipping value chain. 

It added that forming consortiums with core value chain actors is another key action first movers can undertake to lower pilot costs.

“Shipping’s decarbonisation cannot be achieved without collaboration. Forming consortiums will allow first movers to cooperate easily, diversify risks across multiple actors, enter into voluntary offtake agreements, and provide robust demand signals,” said Randy Chen, Director and Vice Chairman, Wan Hai Lines and Co-Chair of the Getting to Zero Coalition’s Motivating First Movers workstream.

To lower investment costs, early adopters can also retrofit existing infrastructure, and establish industrial clusters of industrial sectors.

“The economics of zero-emission shipping will depend massively on the cost of zero-emission fuels. Commitments from cargo owners to procure “green shipping” services at a premium price will be crucial to unlock a first wave of commercial scale project,” added Faustine Delasalle, Director, Energy Transitions Commission.

“A combination of tactical corporate decisions reducing fuel costs, enhanced public support to investment, and collaborations across the maritime value chain can also boost the commercial viability of zero-emission shipping for first movers.”

The report emphasizes that governments have to play a decisive role in supporting the shipping industry’s transition to zero-emission. This ranges from direct grants, offering concessional loans to first movers, waiving electricity taxes and grid fees, co-investing in zero-emission pilots, to exploring measures such as a carbon levy.

“Governments have a crucial role in incentivizing and accelerating shipping’s green transition. By supporting first movers, governments can help generate the technology learnings and economies of scale that will allow the market to take over, similarly to the role governments has played within renewable energy technologies such as solar and wind,” added Kasper Søgaard, Head of Research at the Global Maritime Forum, a Partner of the Getting to Zero Coalition.

The first wave of pilots will prove the technological and commercial case for zero-emission shipping, create demand signals for fuel producers and engine manufacturers, set the template for regulatory measures, and provide the foundations of the long-term infrastructure needed for the decarbonization of maritime shipping.

The analysis focuses on green ammonia and green methanol use in pilots involving containerships, but insights will be relevant for other potential zero-emission fuel options.

The full report “The First Wave – A blueprint for commercial-scale zero-emission shipping pilots” is available for download here.


Photo credit: Energy Transitions Commission
Published: 13 November, 2020

 

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ECA

NorthStandard issues operational guidance for vessels entering ECAs

Jordan Hatch, Loss Prevention Executive, issued guidance for vessels operating in Emission Control Areas (ECAs).

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Jordan Hatch, Loss Prevention Executive of global marine insurer NorthStandard, on Thursday (2 July) issued guidance for vessels operating in Emission Control Areas (ECAs):

The IMO addresses air pollution through MARPOL Annex VI, regulating the emissions of sulphur oxides (SOx), nitrogen oxides (NOx), and particulate matter from ships.

NOx requirements set limits on emissions from marine diesel engines through certification and tiered standards, whilst SOx regulations limit the sulphur content of fuel used onboard ships.

On 1 January 2020, the global sulphur limit for marine fuel was reduced from 3.50% to 0.50% by mass (m/m). However, some areas, known as SOx Emission Control Areas (ECAs), enforce stricter limits of 0.10% sulphur content. There are also dedicated NOx ECAs which impose tighter NOx emission standards for marine engines, particularly on newer vessels.

To meet the stricter SOx limits, ships must ensure they are burning compliant 0.10% sulphur fuel before entering an ECA. If a vessel is changing over from a 0.50% sulphur fuel, this requires a ship-specific calculation based on system volume, sulphur content, and current consumption to determine changeover time. Fuel changeover details, including quantities, date, time, and position, must be logged. Switching back to higher sulphur fuel should only begin after exiting the ECA.

To meet NOx requirements, vessels must demonstrate that their marine engines are certified to the applicable emission tier, and that they continue to operate within those limits through proper maintenance of combustion-related components.

Local Requirements

Some countries apply stricter local requirements in addition to MARPOL Annex VI. For example, Türkiye and Iceland have introduced a 0.10% sulphur limit in their territorial waters, while China has established its own dedicated ECAs.  

Members should check all applicable local requirements before entry and ensure that compliant fuel is available onboard, with sufficient time allowed for fuel changeover.

Scrubber Use

MARPOL allows for equivalent measures in the SOx regulations which means vessels can use exhaust gas cleaning systems (scrubbers) to meet both the global and ECA sulphur caps. Scrubbers remove sulphur from exhaust gases, with wash water as a byproduct, allowing the use of higher-sulphur fuels when operated and maintained according to IMO guidelines in MEPC.340(77).

Scrubbers are available as open-loop (discharging wash water directly into the sea), closed-loop (treating and recirculating the wash water) or hybrid systems. Local regulations vary by country, so members should consult specific guidelines on open or closed-loop usage; our resource here can be used as a guide.

New ECAs

The coverage of ECAs continues to expand, with MEPC 84 adopting the largest ECA to date in the North-East Atlantic.

Mediterranean Sea ECA

Entering into force on 1 May 2025, the Mediterranean Sea is now designated as an ECA, with the 0.10% sulphur limit in effect. Further details can be found here.

The Canadian Arctic and the Norwegian Sea ECA

The amendments to MARPOL Annex VI that designated the Canadian Arctic and the Norwegian Sea as new ECAs entered in to force on 1 March 2026. Both the Canadian Arctic and the Norwegian Sea ECAs for SOx will take effect on 1 March 2027, one year after these amendments came into force.

North-East Atlantic Ocean ECA

At MEPC 84 in 2026, the IMO adopted the North-East Atlantic Ocean as a new Emission Control Area, now the largest ECA designated to date.

This ECA covers a wide area including the waters of Greenland, Iceland, the Faroe Islands, and the western coasts of the United Kingdom and Ireland, extending south to Spain and Portugal, and effectively linking existing ECAs across Europe with the Canadian Arctic region.

The amendments enter into force on 1 September 2027, with SOx limits of 0.10% applying from 1 September 2028. NOx requirements will apply to new ships constructed on or after 1 January 2027 when operating within the area.

With most European and North American waters now designated as ECAs, ship operators should ensure that fuel procurement, changeover procedures, and crew awareness remain aligned with evolving MARPOL requirements when trading in these regions.

A useful infographic and further guidance on ECAs can be found here.

 

Photo credit: Venti Views on Unsplash
Published: 7 July, 2026

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Ammonia

Grimaldi Group unveils ammonia-ready PCTC in Türkiye

Named after Türkiye’s largest city and economic capital, the “Grande Istanbul” is one of the 17 latest-generation, ammonia-ready PCTCs commissioned by the Grimaldi Group.

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Grimaldi Group unveils ammonia-ready PCTC in Türkiye

Grimaldi Group recently presented the Grande Istanbul, one of its latest-generation, ammonia-ready Pure Car & Truck Carriers (PCTCs), during a ceremony held at Autoport in Kocaeli, Türkiye.

Named after Türkiye’s largest city and economic capital, the Grande Istanbul is one of the 17 latest-generation, ammonia-ready PCTCs commissioned by the Grimaldi Group.

The vessel offers a capacity of up to 9,241 CEUs while reducing CO₂ emissions per unit of cargo by up to 50% compared with previous-generation car carriers.

“The ceremony reaffirmed the Group’s long-term commitment to Türkiye, where it has been operating for almost five decades,” the company said in a social media post.

“Today, around 20 state-of-the-art ro-ro vessels and PCTCs connect Turkish ports with a global network of more than 150 ports in over 60 countries, supporting the country’s automotive industry and international trade.”

The Grande Istanbul is currently deployed on the Grimaldi Group’s EuroMed Service, linking several ports in Northern Europe and the Mediterranean, including Autoport, Borusan, Derince, Gemlik, Haydarpaşa and İzmir in Türkiye. 

 

Photo credit: Grimaldi Group
Published: 7 July, 2026

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Port & Regulatory

US lawmakers reintroduce bill to develop clean shipping technology and infrastructure

Legislation would create a USD 1 billion per year programme to develop the next generation of clean shipping technology and infrastructure such as zero-emission ships and cleaner marine fuels.

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US Representatives Nanette Barragán and Troy A. Carter, Sr., along with Senator Chris Van Hollen, on Friday (26 June) reintroduced the Next Generation Shipping Act. 

The legislation would create a USD 1 billion per year programme through the Department of Transportation’s Maritime Administration (MARAD) to develop the next generation of clean shipping technology and infrastructure. 

The lawmakers said the bill would help to address harmful pollution that comes from the shipping industry, a major but often unrecognised source of greenhouse gas emissions and port pollution. 

Through the development and usage of new technologies— such as zero-emission ships, cleaner marine fuels, and better port equipment— the programme seeks to protect the health of port and coastal communities, and help the US reduce its climate pollution.

They added that the bill would also help the United States keep up with other countries in Europe and Asia that are already investing heavily in clean shipping technology. The bill would ensure that the U.S. leads in the future of shipping, rather than rely on technology from other countries.

“Shipping plays a vital role in our economy, and at the Ports of Los Angeles and Long Beach, but it should not come at the expense of the health of our families,” said Rep. Barragán. 

“The Next Generation Shipping Act is about investing in cleaner technologies, supporting American jobs, making sure the United States leads in the future of maritime innovation, all while making sure we do so in a way that preserves public health. By acting now, we can protect our communities, strengthen our economy, and build a more sustainable shipping industry for generations to come.”

“The Next Generation Shipping Act is forward-thinking legislation that will help revitalise the U.S. maritime industry and boost our economic competitiveness. As the federal government looks to expand commercial shipbuilding capacity, the U.S. must invest in cleaner ships and technologies to compete globally,” said Antonio Santos, Federal Climate Policy Director, Pacific Environment. 

“The bill provides much-needed funding to position the US to be a leader in the development of next-generation vessel technologies and sustainable maritime fuels, while creating good-paying jobs and supporting workforce training. We thank Representative Barragán, Representative Carter, and Senator Van Hollen for introducing this important legislation and call on Congress to pass this bill to spur the market for building the advanced ships of the future.”

 

Photo credit: william william on Unsplash
Published: 30 June, 2026

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