Shipping’s Decarbonisation Reality Check: What to Expect in 2024

The year 2023 was filled with significant regulatory developments impacting the shipping industry, including the adoption of a revised GHG strategy, the implementation of the Carbon Intensity Indicator (CII), and the extension of the EU’s Emissions Trading System (ETS) to shipping. As the industry prepares for the next phase, the focus is shifting towards energy and operational efficiency, with an emphasis on voyage optimization, digital systems, wind propulsion, and clean technologies gaining prominence in 2024.

In addition to technological changes, the industry will also need to reconsider its commercial and contractual relationships to share costs and risks, as well as to address inefficient practices. Environmental scrutiny is expanding beyond carbon emissions, with the phasing in of the EU’s Corporate Sustainability Reporting Directive (CSRD), requiring detailed ESG reporting for companies. This will add pressure for enhanced data collection and integration across the industry.

Despite the challenges, industry pioneers are already rising to the challenge, with initiatives aimed at addressing inefficiencies and transitioning towards greener vessels. Collaboration on decarbonization is becoming more practical and feasible, showing that progress in this area is both necessary and beneficial. The industry’s shift in mindset towards tangible results and practical implications of new technologies will be crucial in tackling the challenges and seizing the opportunities in store for 2024.

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