From January 2024 to September 2025, the global shipping industry has made significant strides toward achieving net-zero emissions, with notable advancements in green shipping policies, mechanisms, clean marine fuels, and energy-saving technologies. However, this transformation remains a systemic, long-term, and complex challenge, with obstacles still ahead.

**Mandatory Regulations Take Effect** The International Maritime Organization (IMO) has seen early success with its unified global action plan. Between January 2024 and September 2025, the IMO introduced the *2024 Guidelines for Lifecycle Greenhouse Gas Intensity of Marine Fuels*, providing a standardized framework for assessing emissions and fuel sustainability. Additionally, the IMO approved new Emission Control Areas (ECAs) and Particularly Sensitive Sea Areas (PSSAs), while revising the Data Collection System (DCS) and Carbon Intensity Indicator (CII) reduction guidelines (G3).

At the MEPC83 meeting in April 2025, a draft amendment to MARPOL Annex VI, known as the *IMO Net-Zero Framework (NZF)*, was passed with 63 votes in favor and 16 against. The NZF sets a two-tier emissions reduction target and a carbon pricing mechanism for global shipping. If formally adopted, it will link corporate carbon management capabilities directly to financial performance.

Meanwhile, the EU’s unilateral carbon regulations have come into force, imposing real cost pressures on the industry. The EU Emissions Trading System (EU ETS) and FuelEU Maritime took effect on January 1, 2024, and January 1, 2025, respectively. The former requires shipping companies operating in EU waters to purchase carbon allowances for CO₂ emissions, while the latter sets limits on greenhouse gas content in marine fuels, pushing vessels to adopt sustainable fuels and zero-emission technologies. Together, these measures have turned "carbon cost pressure" into tangible financial burdens.

**Innovation Drives Decarbonization** The shipping industry has entered an era of carbon credit incentives. As of January 2025, 38 emissions trading systems (ETS) were operational worldwide, covering over 12 billion tons of CO₂ equivalent and 23% of global greenhouse gas emissions, affecting about one-third of the global population.

The EU carbon market, the world’s largest and longest-running, included shipping in its ETS on January 1, 2024, significantly impacting vessels calling at EU ports. By September 2025, around 13,000 ships had submitted their 2024 emissions data via the EU’s Monitoring, Reporting, and Verification (MRV) platform.

China has also made progress in carbon market development, with several regional pilots incorporating shipping into emissions oversight. In 2024, Shanghai’s carbon market recorded 406,200 tons traded, totaling ¥32.1534 million.

Green shipping corridors are expanding rapidly. As pilot zones for decarbonization, these corridors are key to achieving zero-carbon shipping. By the end of 2024, 62 projects were active, with 18 new additions that year—a 40% increase—involving about 245 stakeholders across the shipping and energy value chains. Notably, the Shanghai-Los Angeles/Long Beach green corridor is the world’s earliest such initiative.

Voluntary actions are also gaining momentum. Market players are exploring diverse decarbonization pathways through industry initiatives, incentive mechanisms, cross-market adjustments, and certification systems, collectively advancing the green transition.

**Diverse Fuels Gain Traction** As of September 2025, 2,457 vessels worldwide were using clean energy, accounting for 5.6% of global tonnage. Among them, 1,374 ran on LNG, 147 on LPG, and 74 on methanol.

Clean energy vessel orders totaled 1,954, representing 40.7% of total tonnage on order. LNG-powered ships led with 944 orders (26.8% of tonnage), followed by methanol (279 orders, 9.6%) and LPG (139 orders, 1.7%). In 2024, 839 clean energy vessels were ordered, with an additional 321 in the first three quarters of 2025.

LNG remains the dominant transitional fuel due to its mature supply chain and refueling infrastructure. By September 2025, 210 ports worldwide offered LNG bunkering, with Shanghai handling 164,000 tons of bonded LNG bunkering in H1 2025—outpacing Singapore and Rotterdam.

China is leading in green methanol production. Facing limited global capacity and high costs, China has accelerated its green methanol supply chain development. By September 2025, ports like Shanghai, Tianjin, Dalian, Qingdao, Yangpu, and Ningbo-Zhoushan had green methanol bunkering capabilities. With planned capacity exceeding 40 million tons, China is the global leader in green methanol, positioning itself to meet international demand.

Ammonia-fueled vessels have also seen breakthroughs, with engines entering commercial use and over 40 orders placed. Hydrogen, battery power, biofuels, and nuclear energy are progressing steadily.

**Technology and Management Shape Future Gains** Energy-saving technologies, such as hull optimization, air lubrication, wind-assisted propulsion, and onboard carbon capture (OCCS), are in high demand. These solutions improve fuel efficiency and cut emissions but vary in cost, payback periods, and infrastructure requirements.

Operational measures like route optimization, trim adjustments, speed management, and autonomous navigation rely on digital and smart technologies, becoming integral to modern shipping.

**Challenges and Opportunities Ahead** Despite setbacks—such as the delayed adoption of the NZF at the October 2025 MEPC meeting—regional policies are tightening. The EU has integrated shipping into its ETS, the U.S. is advancing clean port legislation, and China is enforcing stricter green shipping rules.

The industry consensus on green transition remains firm, presenting new competitive opportunities. Multiple fuels and technologies will coexist, with LNG as the mainstream transitional option, while green methanol, ammonia, and biofuels show promise. Methanol is already scaling up, ammonia engines are nearing commercialization (with the first commercial vessel expected by 2026–2027), and biofuels offer drop-in compatibility.

Shipping companies must balance capital expenditure and emissions targets when selecting technologies.

The green transition is a profound, systemic shift requiring policy coordination, market innovation, fuel diversification, and technological breakthroughs. Amid uncertainty, steadfast commitment and collaborative innovation will be key to navigating this transformation.