According to a new report on the Global Maritime Hub, sustainable shipping fuels are set to reach cost parity with fossil-based fuels by 2035 with determined policy measures.
This breakthrough announcement stems from an analysis of the EU Emissions Trading Scheme (ETS) and FuelEU Maritime Initiative (FEUM). As per the report, these regulatory measures will result in the cost of utilizing fossil fuels more than doubling by the end of the decade. In turn, this surge would successfully close the price gap between fossil fuels and sustainable alternatives for the first time by 2035.
The maritime industry has long been dependent on fossil-based fuels, causing a significant impact on the environment. However, with the growing awareness and urgency to address climate change, the need for sustainable shipping fuels has become more pressing than ever before.
In recent years, there have been various efforts to introduce and promote the use of alternative fuels in the maritime sector. These include biofuels, hydrogen, and ammonia, among others. While these options have shown potential, their widespread adoption has been hindered by high costs compared to traditional fossil fuels.
But with the latest report on sustainable shipping fuels reaching cost parity with fossil-based fuels by 2035, the game is about to change. This is a significant breakthrough that could pave the way for a more sustainable future for the maritime industry.
The report, published by Global Maritime Hub, highlights the role of regulatory measures such as the EU Emissions Trading Scheme and FuelEU Maritime Initiative in driving down the cost of fossil fuels. These measures aim to incentivize the use of sustainable alternatives by making it more expensive to use fossil fuels.
For more details, you can find the original article linked below.
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