The World Shipping Council (WSC) released its first EU Shipping Decarbonisation Report – Can the EU Fuel Shipping’s Decarbonisation? at the European Shipping Summit 2025, analyzing the industry’s transition to renewable fuels.
While renewable-fuel-capable vessels and fuel production are increasing, the cost gap between fossil and renewable fuels remains a key challenge.
“Investment in new containerships and vehicle carriers is accelerating,” said Joe Kramek, President & CEO of WSC. “Today, about 200 liner vessels are already capable of running on renewable fuel, with an additional 700 vessels hitting the water by 2030. However, to deliver on their potential for GHG reductions, these ships need renewable fuels to be both available and commercially viable.”
According to the report, global vessels on order will require 14.4 million tonnes of oil equivalent (Mtoe) methane, 7 Mtoe methanol, and 0.7 Mtoe ammonia by 2030. However, it remains uncertain how much of the EU’s growing renewable fuel production will be allocated to marine use.
WSC identifies cost as the primary barrier: Bio-methane is 169% more expensive than fossil LNG. Bio-methanol is 469% more expensive than Very Low Sulphur Fuel Oil (VLSFO). E-methanol costs 626% more than VLSFO. “Carriers and fuel providers are clearly committed and investing in vessels and fuel production in anticipation of regulation,” Kramek noted. “To stay on track and actually reach the net-zero goal, we rely on regulators to show the same commitment in putting in place effective measures that will make it possible for renewable maritime fuels to compete with fossil fuels.”
With the International Maritime Organization (IMO) set to discuss global greenhouse gas (GHG) fuel standards and pricing mechanisms next month, WSC urges the EU to:
-Align regional policies with global regulations to prevent market distortions.
-Establish well-to-wake, performance-based fuel standards. Implement a GHG pricing mechanism, potentially funded by Emissions Trading System (ETS) revenues, to incentivize renewable fuel adoption.
-Develop fuel certification systems to ensure global availability of renewable marine fuels.
World Shipping Council (WSC) is an industry association representing global liner shipping companies, focusing on regulatory and policy issues related to maritime trade.
The International Maritime Organization (IMO) is an agency of the United Nations responsible for regulating shipping, including environmental standards and safety.
European Commission is the executive body of the European Union, which oversees environmental policies, including maritime decarbonization efforts.