A new report by EDF and the Decarb Hub warns a trillion-dollar finance gap could stall shipping’s net-zero transition, calling for innovative funding models to support clean fuels, retrofits, and infrastructure.
The Environmental Defense Fund (EDF) and the Lloyd’s Register Maritime Decarbonisation Hub (Decarb Hub) have released a new report warning that a trillion-dollar financing gap could stall the maritime sector’s transition to clean fuels and technologies.
TitledNavigating the Net-Zero Transition, the study draws on two years of research and more than 40 interviews with shipowners, financiers, fuel developers, insurers, academics and NGOs. It warns that, without sufficient funding, shipping emissions could climb to 130% of 2008 levels by 2050.
“Without strong action, emissions from maritime shipping are projected to rise, putting the sector far off track to transition away from fossil fuels by 2050,” said Guillaume Morauw, Sustainable Finance Senior Policy Analyst at EDF and co-author of the report.
The Financing Challenge
Maritime shipping, which carries nearly 80% of global trade and is the sixth-largest emitter of greenhouse gases, faces unique challenges in financing its transition. Ships and fuel infrastructure demand significant upfront investment, with some clean fuel projects requiring up to $2 billion for infrastructure, storage, and terminals.
While recent progress has been made – including the International Maritime Organization’s approval of a framework to put a price on emissions – momentum could stall without stronger support from both public and private capital.
Investors’ climate ambitions also clash with shipping’s realities: high baseline emissions, limited zero-emission solutions, and ESG risks that are already driving some financiers to consider divesting from the sector.
“These challenges are evident in the lack of communication between shipping and infrastructure finance, despite their interdependence. To overcome this, fuel procurement strategies must evolve, and bold collaboration across the maritime value chain is critical,” said Dana Rodriguez, Programme Manager at Decarb Hub and co-author of the report.
Unlocking Capital: Three Concepts
To address the gap, the report proposes three innovative financing concepts aimed at de-risking projects and broadening access to affordable capital:
“Silos are holding back shipping’s transition. Finance and shipping must meet in the middle to deliver a sustainable and affordable transition,” added Rodriguez.
Next Steps
EDF and the Decarb Hub are now seeking stakeholder feedback to refine these concepts and move them toward commercial viability. Banks, shipowners, fuel developers, and public finance institutions are invited to take part in pilot projects. The findings will also be discussed during a closed session at London International Shipping Week on 15 September.
