The World Economic Forum (WEF) on Wednesday (14 January) featured an article by Dong Kwan Kim, Vice-Chairman of Hanwha Group, exploring the key factors that will drive the creation of a financially sustainable, zero-emission global maritime ecosystem: 

The global shipping industry has reached a historic turning point. After more than two centuries of reliance on fossil fuels, shipping has begun to transition towards cleaner propulsion systems as climate commitments tighten and regulatory frameworks take effect.

The International Maritime Organization (IMO) has committed to net-zero greenhouse gas (GHG) shipping emissions by or around 2050. In Europe, regulatory pressure is also increasing. Through its Fit for 55 package, the European Union aims to reduce overall emissions by at least 55% by 2030 and has brought shipping into the EU Emissions Trading System. Under the phase-in schedule, operators will be required to surrender allowances covering 70% of their 2025 emissions in 2026 and 100% of their emissions from 2027 onward.

The market is already responding. Advances in vessel technologies, growing regulatory pressure and coordinated climate commitments are accelerating investment in electric and hybrid shipping solutions worldwide. As a result, the electric ship market is projected to grow from $4.85 billion in 2025 to $18.39 billion by 2032. And with policy frameworks converging globally, we can expect further growth.

In the short term, operators will need to rely on interim solutions, such as offset schemes and onboard carbon capture. But long-term compliance with tightening emissions regulations requires a fundamental shift in how ships are powered.

What will it take to scale electric and zero-emission shipping?

No single technology or policy can decarbonize shipping on its own. Reaching the scale required depends on coordination across the entire value chain, from shipbuilders and port authorities to power providers and policymakers. All of the following must be considered:

Clean propulsion systems

Different vessel types and routes require different technologies. Battery-electric propulsion suits shorter coastal and inland operations, while engines powered by alternative fuels and fuel cells are essential for longer voyages. A balanced portfolio of low- and zero-carbon propulsion options are needed to keep the sector on track.

Safe and high-performance energy storage

Scaling electric shipping requires energy storage solutions that are operationally robust and capable of supporting the power demands of commercial vessels. Energy storage systems (ESS) are central to decarbonizing shipping because batteries determine how far vessels can operate, how quickly they can recharge and how consistently they can perform without fossil fuels.

Retrofittable pathways

New, future-ready vessels will play an important role, but newbuilds alone cannot meet near- or mid-term climate goals. With ships typically operating for 20 to 30 years, retrofitting existing fleets with lower-emission technologies is a practical necessity.

Port-side charging infrastructure

Just as electric vehicles depend on land-based charging networks, electric ships require reliable access to charging or battery-swapping infrastructure. Without it, operators face operational and economic barriers that limit adoption.

Clean energy at the source

Port electrification must be supported by clean energy. Otherwise, emissions that are reduced at sea risk being shifted onshore. A genuinely zero-emission shipping ecosystem will rely on advanced vessel design and clean energy systems that power the ports they serve.

Public-private collaboration

The scale of the transition demands joint action. Governments and industry must work together to reduce risk, align technical and regulatory standards and build shared infrastructure. Collaboration is the only viable path to commercial viability.

The importance of early action

Early adopters play a fundamental role in proving new technologies and business models. While first-mover investments may not offer immediate returns, they’re critical to building confidence, lowering risk and enabling broader market uptake.

Note: The full article can be viewed here. 

Photo credit: Chris Pagan on Unsplash
Published: 19 January, 2026