Shipping readies for massive investments in decarbonization, IMO head says

June 10, 2025, by Naida Hakirevic Prevljak

The global shipping industry requires significant investment in technology and alternative fuels to achieve a net-zero transformation and drive sector-wide change.

This was the message of Arsenio Dominguez, Secretary-General at the International Maritime Organization (IMO) who spoke at a forum in Monaco on June 8, 2025.

As explained, the global shipping industry is preparing for a net-zero transformation that will affect everything from supply chains and business models to ships, ports and the maritime workforce. The IMO approved new regulations for net-zero ship fuels and emissions in April, set for adoption in October. Calls for investments in decarbonization are getting louder.

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“Regulations alone cannot do the job. We need technological development and we need alternative fuels… And that can only happen in one way – with investment,” Dominguez said.

This includes investing in scaling up production of alternative fuels in large enough quantities to replace the 350 million tonnes of fuel oil currently burned by ships each year. Upgrading port infrastructure and bunker operations will also be required to safely provide clean energy for ships when they call at ports around the world.

“It is a complete transformation of the shipping business. It will take ecosystems to do it together,” Christine Cabau-Woehrel, Executive Vice-President of of French shipping and logistics company CMA CGM, commented.

“It will be a long and difficult journey, but we want to be running in front.”

Early movers are already taking action. According to the World Shipping Council, there are at least 200 ocean liners (containerships) already in operation that can run on zero or near-zero emission fuels (ZNZ fuels), while close 80% of all new orders for container ships and vehicle carriers will have the same hybrid capability.

“The liner industry has already invested USD 150 billion in decarbonization. It is unprecedented for the transport sector,” Joe Kramek, President of the World Shipping Council, highlighted.

“But we need the fuel supply… it’s a tremendous investment opportunity.”

The new set of regulations, known as the IMO Net-Zero Framework, takes a two-pronged approach: a global fuel standard that limits the greenhouse gas (GHG) fuel intensity of marine fuels, and a price placed on the GHG emissions from ships.

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The regulations send a clear demand signal to fuel producers, while rewarding ‘first movers’ – shipping companies who take the risk to adopt low- and zero-emission solutions early, and who are then able to share their experiences and expertise with others, as per the IMO.

The IMO Net-Zero Framework works alongside earlier measures adopted by IMO to enhance energy-efficient ship design, operational improvements and carbon intensity ratings. They will be reviewed every five years, with emission limits tightened over time.

Dominguez stressed that these regulations are mandatory, to be applied to all ocean-going ships trading internationally, regardless of their flag. There will be an impact on training, with nearly half a million seafarers requiring upskilling by 2030, and safety measures will need to be comprehensively updated to ensure fuels are deployed safely and efficiently.

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IMO Secretary-General urged the international community to focus on concrete actions and implement the various global commitments already agreed.

“It’s time for us to move from the statements and commitments into actions. That’s what we’ve been doing at IMO for over a decade. That is what we are going to demonstrate again in October, and we will not stop there,” Secretary-General Dominguez pointed out.

“Decarbonization has a cost. We have already spent money in polluting the environment. It is time for all of us to invest in cleaning it, and making it sustainable for future generations,” he concluded.