The Environmental Defence Fund (EDF) and Lloyd’s Register Maritime Decarbonisation Hub (Decarb Hub) have released “Navigating the Net-Zero Transition,” a report exploring new financing solutions to close the trillion-dollar investment gap that threatens shipping’s climate goals.
Based on two years of research and over 40 interviews with shipowners, financiers, fuel developers, insurers, and NGOs, the report warns that without stronger action, maritime emissions could rise to 130% of 2008 levels by 2050.
Maritime shipping, which is responsible for carrying 80% of global trade and ranks as the world’s sixth-largest emitter, faces significant costs in transitioning away from fossil fuels. While the IMO has approved a framework to price emissions, progress risks stalling without greater support from public and private finance.
“Innovative mechanisms to de-risk projects and channel capital are essential,” said Guillaume Morauw, Sustainable Finance Senior Policy Analyst at EDF. “By backing energy-saving retrofits, we can help shipowners cut emissions while offering financiers practical ways to decarbonise their portfolios.”
Yet, investors’ climate ambitions often clash with shipping’s high baseline emissions and limited zero-emission options. A 2023 survey found many finance leaders even considering divestment, leaving smaller shipowners struggling to access affordable capital.
