Despite the worsening effects of climate change, global carbon emissions have only increased. Decarbonization strategies urgently require implementation at every level of the supply chain to achieve net zero emissions. This was one of the messages that was brought into sharp focus at this year’s CERAWeek 2024 conference, where energy industry players gathered to discuss pressing issues relating to the energy transition and how to accelerate decarbonization efforts. This involves identifying and reducing emissions across manufacturing, transport, and end use, as addressing each link in the supply chain is crucial for the decarbonization effort as a whole.

After energy, the transport sector is the second-greatest source of carbon emissions, responsible for roughly one-fifth of CO2 pumped into the atmosphere. Vehicle manufacturers now offer a range of electric vehicles for the consumer market, and though this has had a sizable impact, it alone is not sufficient. The carbon emitted in the production and shipment of electric vehicles also needs to be addressed.

The shipping industry in particular represents a crucial piece in the decarbonization puzzle. With over 90% of goods transported by sea, finding sustainable solutions to shipping will go a long way to achieving net-zero emissions across supply chains. The fashion industry serves as a useful example, as pressure from consumers to go green has encouraged some businesses to choose sustainable shipping options for the transport of products.

However, widespread adoption of green shipping has yet to occur due to a network of conflicting factors. Although many fuel alternatives are being explored, including hydrogen, ammonia, methanol, and biofuels, there is as yet no leading contender. This in turn has led to a slow development of alternative fueling infrastructure and other assets. Without guarantees that green ships can easily be fueled, shipowners are hesitant to make the large capital investments required to order new green ships. These and other related factors have resulted in market gridlock surrounding these newer technologies. Overcoming these obstacles and making broad use of green shipping across supply chains possible will require breakthrough innovations and bold solutions from shipping companies willing to take the initiative to become first movers in the market.

Hanwha Ocean, a leading global shipbuilder with cutting-edge green ship solutions, is committed to spearheading innovation to help pave the way for maritime decarbonization. “We recognize the urgency to decarbonize but also the challenges of doing so, with a vicious cycle of industry uncertainty and weak demand making it hard to scale solutions,” says Hyoung-Seog Kim, CTO of Hanwha Ocean.