04/20/2026
New Energy Vision report!
The Future of Shipping: Cleaner Fuel Options for the Maritime Sector
Maritime shipping is the backbone of global trade, yet it remains one of the most fossil fuel-dependent sectors in the world. Today, shipping consumes over 87 billion gallons of marine fuel each year and is responsible for almost 3% of global greenhouse gas (GHG) emissions. Beyond its impact on climate, shipping also poses serious risks to public health from its emissions of air pollutants, which are linked to higher rates of respiratory and cardiovascular disease in and around port communities. At the same time, the International Maritime Organization (IMO) projects that maritime trade could increase 40-115% by 2050 relative to 2020 levels. As this demand increases, climate impacts and public health risks will only intensify. There’s an enormous opportunity here and momentum is finally growing in the transition to cleaner maritime fuels.
In this report, EV analyzes a suite of low-carbon alternative maritime fuels: renewable diesel, biodiesel, bio-liquefied natural gas (bioLNG), biomethanol, green hydrogen, green ammonia, and e-fuels. We compare these options across lifecycle GHG emissions, cost, infrastructure needs, and scalability, finding that all fuels have tradeoffs and all can be part of the solution set moving forward. As the chart shows, we found that fuels derived from food waste and livestock manure provide the deepest lifecycle emissions reductions, though challenges related to cost and supply remain.
We also outline the current deployment of ships capable of running on alternative fuel. Of the roughly 106,000 commercial ships in the global fleet, just over 1,300 run on alternative fuels, but this number is growing each year. This report examines how regulatory measures from the European Union and IMO are accelerating the adoption of cleaner maritime fuels, and emphasizes the critical role of private sector initiatives. Major consumer product companies and shippers are increasingly developing their own clean fuel programs. Challenges and tradeoffs are prevalent, but so are emerging solutions, including ways to cut problematic “methane slip” from LNG engines. The financial challenge may also be less daunting than it appears—we calculated that the costs of one of the more expensive cleaner fuel options for a trans-Pacific cargo shipment could be covered by an extra 12¢ per pair of sneakers or less than a quarter of a cent more per smartphone.
Ultimately, accelerating maritime decarbonization will require a portfolio approach: one that combines low-carbon biofuels in the near term with continued investment in next-generation fuels. With the right combination of policy support, private sector leadership, and innovative financing, a cleaner maritime sector is both technically achievable and economically viable.
Full report →https://energy-vision.org/pdf/TheFutureOfShipping-EnergyVision.pdf