Cost of Zero-Emission Container Ships and the Path to Decarbonization

A report released by UK-based UMAS details the annual cost of zero-emission container ships as well as the difference in cost per container between trans-Pacific and Chinese coastal ships with different fuel paths. The study finds that initial costs of scalable zero-emission fuels (SZEFs) are significantly higher than conventional fossil fuels, but with the right demand signals and political support, this cost difference is expected to narrow by 2050.

The role of early movers, including cargo owners, is seen as crucial in creating a zero-emissions shipping market. Taking into account technological savings, the study shows that freight purchasing commitments will be required in the early stages of the origination phase. The report also calls for greater transparency on how stakeholders can contribute to addressing the fuel cost gap.

The UNCTAD policy paper urges transport operators, ports, manufacturers, shippers, investors, and energy producers to come together to jointly support the industry in decarbonization and ensure that the process is equitable, fair, and universal. It calls for the creation of a universal regulatory framework and regulations to minimize the uncertainty currently hampering investment decisions of shipowners, shipyards, and ports. Additionally, leading global shipping companies have called for an end date for new buildings powered exclusively by fossil fuels and have urged the International Maritime Organization to create regulatory conditions to accelerate the transition to green fuels.

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