Switched On

LNG, Biofuels and the Future of Maritime Transport

Dec 31, 2025
Fauziah Marzuki, Global Head of Gas at BloombergNEF, and Nikolas Soulopoulos, Head of Commercial Transport Research at the same firm, dive into the challenges of decarbonizing maritime shipping. They explore the rising role of bio-LNG as a cleaner alternative and recent EU regulations pushing for greener practices. The duo discusses the complexities of navigating competing incentives among stakeholders and innovative technologies like advanced hull coatings and smart routing. Ultimately, they highlight the ongoing quest for consensus in shifting the industry toward a sustainable future.
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INSIGHT

Shipping Is A Major Hard‑To‑Abate Source

  • Maritime shipping generates about 2.5–3% of global CO2 emissions, driven mainly by large ocean-going vessels.
  • Decarbonizing shipping is hard but important because it's a major, hard-to-abate source of emissions.
INSIGHT

Europe Is Pushing While IMO Is Paused

  • New EU rules like the EU ETS and FuelEU Maritime are forcing shipowners toward cleaner fuels and lower life-cycle carbon fuels.
  • The IMO delayed a global net-zero framework vote to 2026, leaving the sector without a unified international pathway.
INSIGHT

Consensus Failure Raises Compliance Risks

  • The IMO vote on a net-zero framework was delayed largely due to geopolitical pushback and lack of consensus.
  • A fragmented global enforcement regime risks gaps, friction, and higher costs for compliant actors.
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