The green transition in shipping faces significant challenges, as alternative fuels account for only 2.8 per cent of tanker newbuilds and 1.9 per cent of dry bulk orders since September 2024.
Despite the box sector leading in alternative fuel adoption, the overall newbuilding orderbook remains predominantly conventional, with 95.2 per cent in tankers and 92.6 per cent in dry bulk vessels.
Member states continue to debate five competing net-zero frameworks, with the absence of a financial incentive structure hindering alternative fuel investments. The regulatory timeline is fraught with uncertainty, as proposals vary in firmness, with some lacking enforcement mechanisms and others pushing for more ambitious compliance measures amid ongoing geopolitical unrest impacting fuel markets.