UK maritime sector needs $91 billion investment for energy transition - report

The UK’s shipping sector requires an investment of approximately £75 billion ($91 billion) over the next three decades to reduce greenhouse gas emissions to net zero, according to a new study.

PHOTO: A P&O ferry leaving harbour and navigating on the River Humber. Getty Images

Marine Capital, UMAS and Lloyd’s Register have published the report “UK Domestic Shipping: Mobilising Investment in Net Zero”, which says that small vessels such as ferries and offshore service vessels account for most emissions.

It highlights that while ferries and ro-ro vessels make up only 10% of the UK’s shipping fleet, they account for 50% of domestic emissions. The report calls for “priority action and targeted measures” for these short-sea vessels.

The report also suggests some financial mechanisms that can facilitate participation from institutional investors to help a large-scale fleet renewal in the UK.

However, government support will be needed to unlock this investment, Marine Capital’s chief executive Tony Foster says.

To support decarbonisation, the government can introduce measures such as subsidies for research and development, performance standards for vessels and mandatory use of shore power, the report suggests.

By Shilpa Sharma

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