Navigating the Deep Blue Shift – Decarbonising Shipping

Blue Economy Finance Forum 2025 Highlights from “Transforming Blue Ports and Shipping”

June 20, 2025 - At the recent Blue Economy Finance Forum in Monaco, the spotlight turned to one of the most pressing and complex frontiers in ocean sustainability: the maritime sector. The Blue Economy Finance Forum (BEFF), a high-level platform that brought together together global leaders, heads of state, policymakers, investors, and innovators to accelerate sustainable ocean-based economic development. Organised by the Prince Albert II of Monaco Foundation as a side event of the United Nations Ocean Decade, BEFF focuses on aligning financial flows with marine conservation, coastal resilience, and the decarbonisation of ocean industries.

The session “Transforming Blue Ports and Shipping”, held in the iconic Salle des Princes, brought together global leaders, regulators, and innovators to confront the dual challenge of decarbonising maritime shipping while safeguarding ocean biodiversity.

A Call to Action from the Helm of the IMO

Arsenio Dominguez, Secretary-General of the International Maritime Organization (IMO), opened the session with a keynote address that underscored the urgency of maritime transformation. Speaking from his vantage point as head of the sector’s top regulatory body, Dominguez highlighted how multilateral dialogue is shaping the path toward sustainable maritime practices. He acknowledged the progress made since the adoption of the IMO’s revised GHG strategy but stressed the difficult waters still ahead. “Sustainable maritime shipping is not just an ambition—it’s a necessity,” he remarked, calling for unprecedented collaboration between public, private, and regulatory actors.

The Decarbonisation Dilemma: Global Scale, Local Impact for Sustainable Shipping solutions

Panels took the conversation further, addressing the core issue: shipping, while enabling 90% of global trade, contributes nearly 3% of global greenhouse gas emissions and exerts growing pressure on fragile marine ecosystems. Moderated by Vassilios Demetriades, former Cyprus Shipping Deputy and now Chief Strategy Officer at UW Group, the panel examined the hard realities and emerging opportunities of maritime decarbonisation.

From Thomas Thune Andersen of Lloyd’s Register to Christine Cabau of CMA CGM, the panelists agreed: there’s no single route to net zero. Decarbonisation will require not only new propulsion systems and low-carbon fuels but also a systemic rethinking of vessel lifecycles, port infrastructure, and financing models.

Fuelling the Transition: Innovation on the High Seas

A key focus of the panel was the emergence of next-generation shipping fuels—ranging from bio-methane and e-methane to bio-methanol and e-methanol. These cleaner alternatives offer promising emissions reductions, with methanol-based solutions already entering commercial deployment for short- and mid-range routes. Ammonia, though also seen as a viable zero-carbon option, presents infrastructure challenges, with limited port readiness globally and stringent safety handling requirements.

Charting New Fuel Pathways: The Promise and Pitfalls of Maritime Energy Alternatives

The maritime industry’s fuel transition hinges on a new generation of low- and zero-carbon alternatives, each with distinct production pathways and operational implications. Bio-methane is a renewable gas produced from organic waste through anaerobic digestion, offering near-zero lifecycle emissions and compatibility with existing LNG infrastructure. Its synthetic counterpart, e-methane, is generated by combining green hydrogen (produced via electrolysis using renewable electricity) with captured CO₂, enabling carbon-neutral combustion. Similarly, bio-methanol is derived from biomass sources such as agricultural residues or municipal waste, while e-methanol is produced from green hydrogen and biogenic or captured CO₂. Both methanol variants are increasingly attractive due to their lower emissions, liquid form (easier handling), and growing port infrastructure. However, their scalability hinges on feedstock availability and electrolyser capacity. Ammonia, produced either from natural gas (grey/blue ammonia) or green hydrogen (green ammonia), stands out for being carbon-free at point of use. Yet it presents major safety and toxicity challenges, and current port infrastructure is largely unprepared for large-scale ammonia bunkering. Moreover, all these fuels require new or retrofitted ship designs, with methanol-ready and ammonia-ready vessels beginning to enter the market—marking a significant reengineering of global fleets.

Transitioning to these fuels isn’t just a matter of swapping tanks—it demands a new class of vessels altogether. Methanol-capable ships are being designed with dual-fuel engines and advanced safety systems, while ammonia-powered ships require completely new propulsion configurations and onboard safety protocols. The transition marks a generational shift in naval architecture and maritime engineering.

Redesigning the Fleet: How Shipbuilders Are Engineering the Vessels of Tomorrow

The shift to renewable marine fuels is catalysing a wave of innovation in naval architecture and shipbuilding, as traditional vessel designs are no longer fit-for-purpose. Leading shipyards are now engineering dual-fuel ships capable of running on both conventional and alternative fuels like methanol or LNG, allowing flexibility during the transition phase. More advanced prototypes are being built around single-fuel zero-carbon systems, particularly for green ammonia and hydrogen, which demand entirely new engine configurations, fuel containment solutions, and enhanced safety protocols. Innovations in hull design, lightweight materials, and energy recovery systems are also being integrated to maximise fuel efficiency and reduce overall emissions.

Innovative material design is transforming shipbuilding by improving fuel efficiency and enabling vessels to accommodate the added weight and volume of alternative fuel systems. Advanced composites like carbon and glass fiber polymers offer high strength-to-weight ratios and corrosion resistance, while aluminum alloys are widely used for their lightness and recyclability. New grades of high-strength steel allow for thinner, lighter structural components without compromising safety. Hybrid designs that combine steel hulls with composite superstructures are becoming more common, striking a balance between durability and weight savings. Meanwhile, additive manufacturing is enabling precision-built, weight-optimised components using advanced polymers and alloys. Together, these materials are reshaping how the next generation of ships is designed and built.

Digital ship modelling and AI-assisted design tools are accelerating this evolution, enabling real-time optimisation of vessel performance across different operational conditions. As the sector retools, partnerships between shipbuilders, classification societies, fuel producers, and technology firms are proving essential to de-risk innovation and fast-track scalable solutions. This is not just about cleaner propulsion—it is the redefinition of the modern ship.

Anchoring Change in Leadership, Education, and Collaboration

Chavalit Frederick Tsao, Chairman of TPC, captured the broader imperative with clarity: “The ocean is the final destination where all human pollution is heading.” He stressed that decarbonisation is not solely a technological challenge but also a human one—requiring education, mindset shifts, and cultural adaptation. “To grow this transformation, we need education—especially around new technologies and innovation,” he said.

Tsao also emphasized the pivotal role of China, calling it “the most capable partner” and underscoring its status as the largest player in the global maritime economy. He called for closer partnerships with Chinese shipbuilders, innovators, and regulators to scale maritime solutions at the pace required.

Investment and Innovation: The Missing Currents

A recurrent theme was finance—not just in volume, but in structure. “We need blended capital models that de-risk early adoption of sustainable technologies,” Tsao noted, linking maritime reform to wider blue economy transformations. With the cost of retrofitting fleets and building new green ports running into hundreds of billions of dollars globally, panelists called for greater participation from institutional investors, multilateral development banks, and public-private climate funds.

The shift is already underway. Pilot corridors for green shipping, such as those between major Asian and European ports, are being tested. Biofuels, green methanol, and ammonia are entering commercial trials. And digital twin technologies are enabling real-time vessel optimisation for emissions reductions.

Conclusion: Turning the Tide

The BEFF sessions made clear that transforming blue ports and shipping isn’t a linear journey—it’s a multidimensional transition with regulatory, financial, and technological currents intersecting at every turn. But momentum is building. With leadership from institutions like the IMO and action from industry pioneers, the maritime sector is preparing to steer a new course—one where trade, climate, and biodiversity can coexist on the same horizon.

General Information Disclaimer

The information provided in this blog is for general informational and educational purposes only and should not be considered as financial, investment, or legal advice. While we strive to ensure accuracy and relevance, we make no representations or warranties, express or implied, regarding the completeness, reliability, or suitability of the information provided.