The World Shipping Council (WSC) has released new research underscoring the growing potential for renewable-capable vessels and renewable fuels to help the European Union meet its 2030 decarbonization targets. However, the study highlights that the significant price gap between fossil fuels and renewable alternatives remains a critical barrier to achieving meaningful emissions reductions in the shipping sector.
The first WSC EU Shipping Decarbonisation Report – Can the EU Fuel Shipping’s Decarbonisation?, unveiled at the European Shipping Summit 2025 in Brussels, provides a comprehensive examination of the transition to renewable fuels in the EU maritime industry. The report finds that while the number of vessels capable of running on renewable fuels is increasing and fuel availability is improving, the cost disparity is a major hurdle to scaling production and fostering widespread adoption.
“We’re seeing accelerated investment in new containerships and vehicle carriers,” said Joe Kramek, President & CEO of the World Shipping Council. “Currently, around 200 liner vessels are already capable of running on renewable fuels, with an additional 700 vessels expected to launch by 2030. However, for these ships to contribute significantly to reducing greenhouse gas emissions, renewable fuels must not only be available but also commercially viable.”
Kramek emphasized that renewable fuel supply, especially in Europe, is no longer theoretical—it is becoming a reality. However, he noted that bio-methane, bio-methanol, and e-methanol are priced significantly higher than their fossil counterparts, making them commercially unfeasible without targeted regulatory action. Specifically, bio-methane is 169% more expensive than fossil LNG, bio-methanol is 469% more costly than Very Low Sulphur Fuel Oil (VLSFO), and e-methanol costs 626% more.
“Carriers and fuel providers are making substantial investments in vessels and fuel production in anticipation of regulatory frameworks. This positions the shipping industry on the right path toward meeting its 2050 decarbonization targets and 2030 goals. However, to stay on track, we need regulators to match this commitment by enacting policies that will enable renewable maritime fuels to compete with fossil fuels,” Kramek added.
Key Findings from the Report:
- Projected Fuel Demand by 2030: Global orders of vessels will require 14.4 million tonnes of oil equivalent (Mtoe) of methane, 7 Mtoe of methanol, and 0.7 Mtoe of ammonia.
- EU Renewable Fuel Production: While renewable fuel production in the EU is growing, the amount allocated for marine use remains uncertain.
- Renewable Fuel Supply Potential: Optimistic projections suggest sufficient supply to meet FuelEU decarbonization targets by 2030, but the commercial viability of renewable fuels depends on regulations that reduce the cost gap with fossil fuels.
Cost Barriers:
- Bio-methane: 169% more expensive than fossil LNG.
- Bio-methanol: 469% more expensive than VLSFO.
- E-methane: 560% more expensive than VLSFO.
- E-methanol: 626% more expensive than VLSFO.
With the International Maritime Organization (IMO) set to discuss global greenhouse gas (GHG) fuel standards and pricing mechanisms next month, the WSC emphasizes the EU’s crucial role in creating ambitious regulations that can bridge the price gap.
Recommendations for the EU:
- Align regional policies with global regulations to ensure fair competition and avoid market distortions.
- Establish well-to-wake, performance-based fuel standards that reflect actual emissions reductions.
- Implement a true GHG pricing mechanism that funds a cost-difference model to incentivize renewable fuel adoption, potentially supported by revenues from the EU Emissions Trading System (ETS).
- Develop fuel certification systems to ensure a global supply of genuinely renewable marine fuels.
“Shifting from fossil fuels to renewable energy in global shipping will require time and significant investment,” Kramek concluded. “We’re off to a solid start, and with strong, ambitious regulation, we can collectively ensure that we meet climate goals while maintaining commercial sustainability.”
