Fuelling the Future of Shipping: Key Barriers to Scaling Zero-Emission Fuel Supply

The report identifies ten systemic barriers across demand, finance, regulation, infrastructure, and organization that hinder the scaling of zero-emission shipping fuels. Despite rising demand, evidenced by over 180 dual-fuel vessels on order, more than 95% of production projects remain pre-FID. The authors argue that overcoming these hurdles requires unconventional public-private partnerships, innovative financing, and the development of strategic green corridors.

• A critical gap exists between the demand for zero-emission fuels and the actual supply pipeline; while over 180 dual-fuel ships are on order, more than 95% of projects focused on producing these fuels have not yet passed the final investment decision (FID) phase.
• Ten primary barriers are limiting the progress of zero-emission fuel projects, categorized into five areas: customer and consumer demand, economics and finance, regulatory issues, supply-chain and infrastructure enablers, and organizational factors.
• Financial instruments are currently not fit for purpose because the high-risk, capital-intensive nature of these projects falls into a gap between venture capital (high risk, small scale) and traditional project financing (low risk, large scale).
• Regulatory uncertainty is driven by a lack of global carbon pricing and a lack of standardized definitions for what constitutes 'green' fuels, which risks making projects obsolete if requirements change after construction begins.
• Specific technical and supply chain risks vary by fuel: methanol production is hindered by tightening access to biogenic CO2 near cheap renewables, while ammonia faces significant safety concerns regarding its toxicity and handling at ports.
• The shipping sector competes with other hard-to-abate industries, such as chemicals and fertilizers, for the same limited supplies of low-carbon hydrogen and CO2 feedstocks.
• To accelerate the transition, the report suggests implementing 'green corridors' in attractive production locations and shipping routes, and utilizing non-traditional finance such as capacity payments and blended finance stacks.

APA

World Economic Forum (2023). Fuelling the Future of Shipping: Key Barriers to Scaling Zero-Emission Fuel Supply. https://www3.weforum.org/docs/WEF_Fuelling_the_Future_of_Shipping_2023.pdf

Chicago

World Economic Forum. Fuelling the Future of Shipping: Key Barriers to Scaling Zero-Emission Fuel Supply. 2023. https://www3.weforum.org/docs/WEF_Fuelling_the_Future_of_Shipping_2023.pdf.

Wikipedia

{{cite report |author=World Economic Forum |title=Fuelling the Future of Shipping: Key Barriers to Scaling Zero-Emission Fuel Supply |date=December 2023 |url=https://www3.weforum.org/docs/WEF_Fuelling_the_Future_of_Shipping_2023.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldeconomicforum2023fuelling, author = {{World Economic Forum}}, title = {{Fuelling the Future of Shipping: Key Barriers to Scaling Zero-Emission Fuel Supply}}, institution = {World Economic Forum}, year = {2023}, month = dec, url = {https://www3.weforum.org/docs/WEF_Fuelling_the_Future_of_Shipping_2023.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }