While the shipping industry has been working on green shipping for some years, 2025 may become a significant year for this trend.
In April 2025, the International Maritime Organization (IMO) will convene to discuss its greenhouse gas reduction strategy goals. Furthermore, it will also discuss the most practical means to set the industry to reach net-zero emissions by 2050.
In addition, green shipping, which is expected to continue growing, can provide new financial opportunities for companies in the industry.
Also Read: Defrost Reefer Containers: Challenges and How-Tos
Why is Green Shipping Important for the World?
Responsible for transporting over 80% of global trade, shipping has long been a cornerstone of the global economy.
However, its environmental impact (accounting for approximately 3% of global greenhouse gas (GHG) emissions) has placed it under increasing scrutiny.
As the world moves toward decarbonization, green shipping has become inevitable, spurred by technological advancements, regulatory pressures, and economic incentives.
The Push for Decarbonization
IMO’s net-zero emission goal includes interim checkpoints, such as reducing carbon intensity by at least 40% by 2030 compared to 2008.
These targets have created a sense of urgency within the industry to adopt cleaner fuels, energy-efficient technologies, and innovative practices.
One of the primary drivers of green shipping is alternative fuels like liquefied natural gas (LNG), hydrogen, ammonia, and methanol.
These fuels significantly reduce carbon emissions compared to traditional heavy-fuel oil. For example, LNG emits up to 30% less CO2 and virtually eliminates sulfur oxide emissions.
Meanwhile, hydrogen and ammonia are becoming popular alternatives, although their widespread adoption will need significant infrastructure investments and technological advancements.
Beyond fuels, ship designs are also evolving to support decarbonization efforts. Energy-efficient engines, wind-assisted propulsion systems (WAPS), and hull designs that reduce drag are becoming more common.
Retrofitting older vessels with green technologies ensures that existing fleets can contribute to emission reduction goals while minimizing waste through reuse.
The Role of Technology in Green Shipping
Technological advancements like artificial intelligence (AI) and the Internet of Things (IoT) are optimizing operations across the shipping value chain.
AI-powered route planning minimizes fuel consumption by identifying the most efficient paths based on weather conditions and traffic patterns.
Meanwhile, IoT sensors provide real-time data on cargo conditions and ship performance, enabling predictive maintenance that reduces downtime.
Smart ports with automated cranes and digital platforms enhance efficiency by reducing turnaround times.
Blockchain technology is improving transparency in supply chains while streamlining documentation processes, and cutting down on paper waste and administrative inefficiencies.
Together, these innovations can reduce environmental impact and improve operational reliability and cost-effectiveness for shipping companies.
Nascent autonomous ships are another game-changer in green shipping. Equipped with advanced navigation systems and AI algorithms, these vessels optimize fuel usage while minimizing human error.
Although still in their early stages, autonomous ships represent a promising step toward a more sustainable future for maritime transport.
Economic Incentives Driving Green Shipping
Green shipping isn’t just about meeting environmental goals – it also makes economic sense!
Cleaner technologies and alternative fuels lower operational costs in the long run by reducing fuel consumption and maintenance needs.
For instance, energy-efficient engines require less frequent servicing, while optimized routes save time and fuel expenses.
Regulations such as carbon pricing further incentivize greener practices by penalizing non-compliance with hefty fines.
Carbon levies that can range between $18.75 and $150 per ton of CO2 by 2030 encourage companies to transition to low-emission alternatives or risk financial penalties that could erode profitability.
These funds can also be reinvested into subsidies for zero-emission fuels or infrastructure development, accelerating the industry’s shift toward sustainability.
The Expected Green Shipping Measures
In April 2025, the IMO expects to agree on the following points to ensure green shipping is the way forward for the global industry, such as:
Technical Elements
Global fuel standards (GFS) incentivize industry actors to switch to alternative fuel types and regulate the phased reduction of the GHG intensity of conventional fuels.
Economic Elements
Carbon levies encourage and push industry actors into using alternative fuel types that result in the quicker adoption of cleaner fuel sources.
While discussions are only one month away from now, the proposal recommends the signatures to use money raised from the levies as subsidies to reduce the cost of non-emission fuels and help the most impacted countries.
Details on the MEPC 83 Meeting
The center stage of the IMO’s discussions in April 2025 is the 83rd Marine Environment Protection Committee (MEPC) meeting at the agency’s London headquarters on April 7-11, 2025.
The meeting will discuss environmental issues under IMO’s remit and its members must abide by the meeting’s approved results once the regulations are approved in a subsequent meeting by autumn 2025.
After their final approval in autumn 2025, the new regulations will come into effect in 2027.
Financial Opportunities from Green Shipping
Since major regulations concerning green shipping are still in their drafting phases, many industry actors still only commit to green shipping practices voluntarily.
However, it doesn’t mean that industry actors are unwilling to step further into adopting green shipping practices more intensively.
According to survey results by BCG, four of five cargo owners are willing to pay more at some level, thus potentially increasing their willingness-to-pay (WTP) levels and incentivizing green shipping practices.
In the same record, BCG forecasts a $10 billion financial opportunity (based on a total demand forecast until 2030) for cargo owners willing to shift to green shipping practices.
While the regulations will take time until they come into effect in 2027 (provided the meetings went successfully), BCG said cargo owners should be more proactive in practicing green shipping.
For example, cargo owners can make strategic go-to-market (GTM) strategies that include competitive pricing in green premiums and transparency-based offerings.
In this regard, shippers can become industry leaders ahead of everyone else and boost their partnerships with cargo owners before the regulations become effective.
Also Read: How Many Containers on a Cargo Ship? Mathing the Figures
Conclusion
As green shipping will become the future of the global trade industry, using the best platforms that can last long can reduce the need for resource overspending on developing newer yet more exhaustive platforms. Tradecorp’s shipping containers, for example, can last decades and always deliver to satisfy the company’s vast array of customers. Having offers from standard shipping containers to more specialized reefer containers, Tradecorp is ready to help any industry. Order one today!
