DNV panellists call for more regulatory certainty
The IMO must provide clarity on its Net-Zero framework to help prioritise technologies, secure fuel access and contain rising costs, panelists urged at DNV’s Maritime Forecast 2050 session during London International Shipping Week.
IMAGE: (L-R) Panellists Claire Wright, Andy Dacy, Silke Lehmköster, Mirtcho Spassov and DNV's Cristina Saenz de Santa Maria as moderator. Linkedin of LISW
The shipping industry’s transition to net-zero will hinge on regulatory clarity, fuel flexibility and collaboration across the value chain, panelists said.
The cost of flexibility
Hapag-Lloyd is preparing for a multi-fuel future and wants the regulatory environment to reflect that reality.
“We don’t want to be bound to one specific port for bunkering green fuels,” said Silke Lehmköster, managing fleet director at Hapag-Lloyd. She argued that beyond availability, shipowners also need flexibility because they ultimately have customers to serve.
She stressed the importance of staying fuel-agnostic and pointed to the need for offtake agreements with fuel suppliers, like Hapag-Lloyd has signed, adding that only direct access to low- and zero-emission fuels can ensure availability and certainty in the future.
These concerns were echoed by Andy Dacy, chief executive of global transportation at JPMorgan Asset Management.
From a financing perspective, securing reliable fuel supply and managing rising costs are among the biggest hurdles, Dacy said.
He noted that for methanol dual-fuel ships, one of the main challenges is sourcing sufficient CO2 to support e-methanol production, making partnerships with end-users and feedstock suppliers critical to scaling supply chains.
When it comes to LNG, geopolitical risks cause concerns. The Russia–Ukraine conflict has demonstrated how quickly sourcing can become uncertain and how sharply fuel prices can rise, Dacy said.
Balancing new pathways
For shipbuilders, the challenge lies in engineering and sequencing new technologies. The IMO’s decision in October is pivotal for setting the direction of investment, Claire Wright, managing director of Hanwha Ocean Europe said.
She explained that shipowners across multiple vessel segments are pursuing different pathways. Ferries are exploring fuel cells while larger vessels are considering methanol or ammonia.
Without regulatory clarity, she noted, it becomes difficult to prioritise which technologies should be engineered and deployed first.
Shipowners are also weighing complementary solutions to improve the economics of alternative fuels. Eastern Pacific Shipping sees wind-assisted propulsion as one such pathway.
“When regulatory compliance and abatement costs are factored in, wind technologies become a more attractive option,” said Mirtcho Spassov, manager decarbonisation at Eastern Pacific Shipping. He added that onboard carbon capture systems could also play a role, particularly because captured carbon can be reused, helping to shorten payback periods and improve overall economics.
But high cost of deploying new technologies will add pressure across the market, JPMorgan’s Dacy warned.
Rising shipbuilding expenses, combined with the need to train and secure crews capable of handling alternative fuels, are pushing costs higher. “We are on the trajectory of high costs, and all of that is going to be reflected in charter rates in the future,” he said.
What the industry wants
While perspectives varied, the call for regulatory certainty was unanimous.
The speakers urged the IMO to keep to its October timeline on the Net-Zero Framework to unlock investment in fuels and technologies. They said fuel availability, costs and technology development are major hurdles, and identified opportunities in stronger partnerships, fuel flexibility and efficiency-boosting technologies.
As Wright summed up: “We need certainty from the IMO to understand which pathways are viable and when. That clarity will allow us to deploy technologies in line with customer demand.”
By Konica Bhatt
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