Shipping decarbonization challenges in 2025 continue to mount as the sector grapples with fuel shortages, unclear policy frameworks, and the rising urgency of climate targets.

The shipping industry is facing immense pressure to reduce emissions due to the underdevelopment of decarbonization technologies and the tightening of carbon tax policies. Major players, including Maersk and Taiwan’s top shipping companies, Evergreen, Wan Hai, and Yang Ming, are adopting sustainable fuels and onboard carbon capture (OCC) technologies to address these challenges.

As companies strive towards net-zero emissions, the focus is shifting increasingly to Scope 3 emissions, which are closely tied to the supply chain. According to the Carbon Disclosure Project (CDP), Scope 3 emissions account for an average of 75% of total emissions across various industries. Notably, the carbon footprint from the transportation and distribution of products increased, with international shipping emissions rising by 5% in 2022, approaching pre-pandemic levels.

Green logistics market to reach $350 billion by 2030

A survey by McKinsey of 250 global freight companies and suppliers reveals a growing shift toward sustainable logistics. Over 70% of respondents expressed a willingness to pay a premium for greener shipping solutions, driven by consumer demand for reduced carbon footprints. McKinsey projects that the green logistics market will reach $350 billion by 2030, accounting for 15% of global logistics expenditure.

Figure 1

The technology sector is expected to contribute the most, with $111 billion, followed by the consumer retail, manufacturing, healthcare, and fossil fuel sectors. However, there is a stark contrast between the willingness to reduce carbon emissions and actual implementation, with only a quarter of companies confident in their decarbonization goals.

Figure 2

The report identifies three major obstacles to decarbonizing logistics:

• Lack of standardized solutions: The lack of high-quality, universally applicable, low-carbon shipping solutions discourages investment in new technologies.
• Uncertainty of new technologies: The challenges include not only costs but also the scalability of innovations and the disposal of surplus assets.
• Corporate hesitancy: Many low-carbon logistics technologies, such as sustainable fuels and charging infrastructure, are not yet scalable, hindering business investment decisions.

Green fuel supply constraints and international policies increase decarbonization pressure.

Despite initial reports not distinguishing between maritime, land, and air transport challenges, maritime shipping, which accounts for approximately 90% of global trade, is a significant source of carbon emissions, contributing nearly 3% of global emissions.

The industry relies on fossil fuels for 99% of its electricity demand, with no large-scale sustainable fuel alternatives currently available, thereby exacerbating the pressure for decarbonization, especially given the growing international requirements.

In March 2024, the International Maritime Organization (IMO) convened a meeting at which 34 countries endorsed a global tax on greenhouse gas emissions for the shipping industry. The IMO is drafting details for this tax, which, if approved, will come into effect in 2027, marking the first global carbon pricing scheme.

The IMO adopted revised guidelines in July 2023 to achieve net-zero emissions by 2050, which are stricter than the guidelines adopted in 2018. The guidelines include milestones, such as a 30% reduction by 2030 and 80% by 2040 compared to 2008 levels. However, there are still significant disagreements among countries regarding pricing standards and tax applications.

The EU Emissions Trading System (ETS) began including shipping in April 2023, requiring ships with a gross tonnage of over 5,000 to purchase emission allowances for 40% of their emissions starting in 2024, with the requirement increasing to 100% by 2026.

The European Council also passed the FuelEU Maritime regulation in July 2023, mandating that the shipping industry reduce carbon emissions by 2% from 2025 levels compared to 2020 levels, with an 80% reduction target by 2050. This regulation applies to vessels with a gross tonnage of over 5,000, which represent 55% of the fleet and account for approximately 90% of the fleet’s carbon emissions.

Shipping giants are tackling decarbonization through the use of low-carbon fuels and energy efficiency.

Global shipping leader Maersk is widely recognized for its ambitious decarbonization efforts, with its greenhouse gas reduction targets verified by the Science Based Targets Initiative (SBTi), making it the first to achieve certification under the new maritime guidelines.

Maersk utilized green fuels to transport 660,000 TEUs in 2023, representing a 37% increase from the previous year and resulting in a reduction of 683,000 tonnes in emissions.

Maersk’s goals include a 35% reduction in Scope 1 emissions by 2030, with a significant acceleration of these cuts by 2040, targeting a 96% decrease in Scope 1 and 2 emissions and a 90% reduction in Scope 3 emissions.

Green methanol and biodiesel are expected to play crucial roles, with the launch of the world’s first sizeable methanol-powered container ship, “Ane Maersk,” marking a significant step in expanding their green fleet.

Taiwanese shipping giants Evergreen, Wan Hai, and Yang Ming are also advancing their sustainability efforts.

Yang Ming has begun using biofuels for its fleet, with its vessel “YM Together” being the first foreign ship in South Korea to use biofuels.

Evergreen is investing in methanol-powered ships and containers, aiming to reduce carbon credit purchases through long-term energy-efficient vessel strategies.

Wan Hai has launched limited-time carbon-neutral routes, encouraging customers to support environmental initiatives, and is among the first buyers of carbon credits from Taiwan’s carbon exchange.

International shipping remains one of the hardest-to-abate and carbon-intensive industries. In addition to low-carbon fuels, the industry is also exploring onboard carbon capture technology (OCC).

As green fuels become more expensive, technologies that enable the use of traditional fuels while reducing emissions may emerge as a promising path to accelerate decarbonization goals in the future.

Source: CDP, McKinsey & Company, IEA, Sustainability Magazine, DVN

Shipping Is Stalled by Supply and Policy — It’s Time for Proven Solutions

From inconsistent policy to green fuel shortages, maritime decarbonization is facing real-world obstacles. The future belongs to those with scalable, circular, and compliant fuel systems.

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