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Shipping Future Fuels Webinar

The International Chamber of Shipping (ICS) hosted a webinar on ‘Shipping Future Fuels’ on the 9th of December 2025. The Webinar explored how the industry will approach a transition to renewable fuels. These discussions follow the transformative decisions such as the COP30 Belem pledge to quadruple sustainable fuels and the International Maritime Organisation’s (IMO) postponement of the net-zero framework.

ICS Head of Energy Transition Nelson Mojarro moderated this webinar, and opened by welcoming our speakers, Professor of Applied Economics at Bierbach University Dr. Stefan Ulreich, Executive director of H2 Global Foundation Dr. Susana Moreira, and Partner at ERM Dr. Ausilio Bauen. Nelson contextualised why this discussion is paramount, re-iterating that whilst shipping is responsible for transporting 36% of the world fossil fuel energy trade, it only uses 4%. The International Renewable Energy Agency predict that ships will transport 50% of renewable energy, justifying the desire for shipping to also be a user of these fuels, not solely a transporter.

As the discussion opened to our panellist, they addressed the COP30 Belem pledge and how this will facilitate greater momentum for the demand of sustainable fuels. Dr. Ausilio Bauen highlighted that although this pledge is a great step in the right direction, co-ordinated action is needed to meet goals for the next decade. For example, meeting these will require a doubling of the renewable fuels we have today. This demand would need incentives like the IMO’s net-zero framework to be implemented. Dr. Susana Moreira expanded on this point, explaining that whilst we have had energy transitions before, this has taken 20-30 years whereas we are trying to accomplish that in closer to 5-6 years. Therefore, we need governments around the world to come together and create incentives to make this achievable. Dr. Stefan Ulreich commented on the growth opportunity for sustainable markets, stating that climate change is not an exclusive driver for sustainable fuels, there is also security of supply. There is potential for producers of sustainable fuels to become independent of certain imports which could help address the current price differentials. However, this opportunity will generate a competitive situation for fuels which may drive up prices, as industries outside of shipping will also be fighting for the supply.

Dr. Stefan Ulreich provided some key recommendations on how policy makers could implement demand incentives. He highlighted that the technology exists for the supply chain to invest, however they need incentives, quotas, contracts to guarantee stability, security of supply, and affordability, which all require global co-operation, or as Dr. Ulreich put it, “coalition of the willing.” Dr. Susana Moreira offered valuable insight into the challenge of sustainable markets and ensuring the governmental support avoids long-term dependence on public funding. Her work at H2 Global aims to bridge the cost gap between conventional and sustainable fuels by creating a mechanism to work with governments and produce self-sustaining markets. On the topic of cost, Dr. Ausilio Bauen explored reasons why only about 4% of projects have been gaining financial investment decision (FID), raising concerns surrounding capacity, uncertainty, and economic viability. It was noted that the fuels predicted to have future growth, like biofuel and e-fuels, are the ones struggling most to get FID, implying that interest is not transferring to progression.

Whilst finance has acted as a barrier to future renewable fuels, the webinar also addressed the issue of infrastructure. Dr. Stefan Ulreich shared his perspective following his recent work surveying industry leaders. He stated that with a multi-fuel future, there are concerns around fuel compatibility and security of supply. Production facilities also require a lot of space whilst being in close enough proximity to ports, meaning that during the transition period, there must be space for both new structures and old fossil fuel structures. Dr. Ausilio Bauen elaborated by stating that whilst there is massive opportunity for ports, it comes with a lot of uncertainty particularly around space, safety, security, and cost. Dr. Susana Moreira added that infrastructure “should not be an afterthought.” She echoed similar concerns expressed by both speakers and underlined how crucial it is to be transparent about what is planned.

Since the conversation had been focusing on long-term considerations, it was critical to discuss the key short-term factors and explore what could be expected for 2026. Dr. Susana Moreira raised concerns about uncertainty of international standards. She encouraged the industry to prioritise clarification in 2026, and to keep pushing these conversations to influence international harmonisation. Dr. Ausilio Bauen detailed that misalignment of policy making standards is driving market fragmentation. Using the IMO’s net-zero framework as an example, he explained how implementing this would become a global standard which would aid market conformity. In the short-term, he wants to see guidelines that implement clearer policy and collective action to accelerate renewable fuels, creating long-term certainty with better costs. Dr. Stefan Ulreich affirmed the desire for global regulations to avoid fragmentation but stated that 2026 will not see any large steps. Real change occurs over decades; however, the small steps we will witness next year are crucial components in the bigger picture, therefore we must act with determination and patience.

The webinar closed with a sentiment our speakers want the audience to remember:

With the impending threat of climate change, we must act now. We must not wait for the IMO to make their decision on the net-zero framework. We must prepare for the future today. Transitioning to cleaner fuels is possible, and the current opportunity to accelerate it is huge. The cost barrier does exist, however not acting now will only result in larger costs for companies and the planet in the future.