Large shipping companies such as A.P. Møller-Mærsk A/S and Nippon Yusen Kabushiki Kaisha are gradually working to reduce their greenhouse gas (GHG) emissions, but they are encountering difficulties along the way. Recent reports indicate that these companies are facing an overall increase in emissions by 2025, despite reducing the intensity of emissions due to increased maritime distances caused by geopolitical tensions.
Progress and Challenges in Reducing Emissions
Large maritime companies aiming for net zero carbon targets by 2050 have shown in their annual reports that while the intensity of greenhouse gases per transport work unit has decreased, total emissions are on the rise. According to Tore Longva, decarbonization manager at DNV, the increase in maritime distances has led to higher fuel consumption and consequently an increase in total emissions.
Read more: Shan M. Dalton Elected as the New President of the International Marine Insurance Association
High Costs of Green Fuels
Green fuels remain significantly more expensive than oil-based fuels. For example, the average price of 0.5%-sulfur fuel in Singapore in July was $18.66 per gigajoule, which is notable compared to $20.05 for LNG and $48.69 for 100% sustainable methanol. These prices indicate that the costs of green fuels are still challenging for companies.
Regulations and the Need for Global Coordination
The European Union has expanded its greenhouse gas emissions trading system to maritime transport starting in 2024 and introduced the FuelEU Maritime regulations in 2025. These regulations are designed to limit the intensity of marine fuels. Additionally, the International Maritime Organization (IMO) has approved a net zero framework that is set to impose costs on emissions from ship operations starting in 2028. However, the implementation of this plan has faced delays.
Voluntary Demand and Economic Challenges
Without sufficient global incentives, shipping companies are struggling to offer sustainable transport services at higher prices. For instance, the use of biofuels and green methanol at A.P. Møller-Mærsk A/S has decreased to 1,524 gigawatt-hours in 2025, which is half the amount in 2024. This reduction has been attributed to lower demand from cargo holders.
The Future Outlook for the Maritime Transport Industry
Large Japanese companies like Mitsui O.S.K. Lines Ltd. believe they can achieve significant reductions in emissions by improving energy efficiency and utilizing available alternative fuels. These companies are working to leverage LNG and biofuels in their operations and are moving towards zero-carbon fuels such as ammonia.
Read more: New Research on Sleep in Non-Industrial Societies · Jennifer Jordan-Saifi in Norway: The Need for Progress in Reducing Carbon in Maritime Transport
