Energy Efficiency Emerges as a Key Lever to Cut Shipping Costs and Emissions

• Energy efficiency alone could reduce shipping emissions by up to 40% by 2030.

• More than half of efficiency measures deliver net cost savings for shipowners and operators.

• Efficiency gains can significantly lower the cost of transitioning to alternative marine fuels.

• Structural and commercial barriers continue to slow adoption despite strong economic returns.

According to an article published on December 17, 2025, by Sofia Parker, Dominik Englert, and Rico Salgmann, improving energy efficiency in maritime transport represents a major opportunity to reduce both shipping costs and emissions, while supporting the sector’s transition to new energy sources.

Energy Efficiency and the Role of Shipping

Seaborne transport moves the majority of internationally traded goods, underpinning global supply chains by enabling countries to import essential commodities and export goods competitively. Against this backdrop, the authors examine how greater energy efficiency can help maintain low transport costs while facilitating a cost-effective shift to alternative energy sources.

Recent public discourse around shipping’s energy transition has focused largely on alternative fuels such as biofuels, hydrogen-based fuels, and liquefied natural gas, often overlooking efficiency measures. The article notes that energy efficiency accounted for less than one-third of media coverage related to the maritime energy transition, despite the sector handling an estimated 70–80% of global trade.

Emissions Reduction Potential

In the Keys to Energy-Efficient Shipping report, the authors model how enhanced energy efficiency could shape maritime transport in the coming years. Their findings indicate that by 2030, energy efficiency measures alone could cut ship emissions by up to 40%. This would exceed the International Maritime Organization’s target of reducing emissions by 20–30% by 2030.

Beyond climate benefits, the reduction in fuel consumption would also lower air pollution near ports, benefiting communities exposed to emissions from ship traffic.

Cost Savings and Market Impact

The analysis highlights that more than half of available energy-efficiency measures come at a negative cost, meaning the fuel savings outweigh the investment required. Measures such as wind-assisted propulsion systems, including rotor sails on bulk carriers, and speed reductions for container ships can fully recover their installation costs through reduced energy consumption.

Energy efficiency is presented as a critical complement to alternative fuels. Together, these approaches could generate substantial economic benefits, with estimates suggesting annual savings of up to $220 billion during the transition from fossil fuels to green fuels. These savings would apply both to new or retrofitted vessels using green methanol or green ammonia and to existing ships still operating on fuel oil.

Barriers to Adoption

Despite clear economic and environmental advantages, the article notes that energy efficiency remains underutilized. Barriers include economic, behavioral, and organizational factors. One key challenge is the split incentive between shipowners and charterers: while owners must invest in efficiency upgrades, fuel costs are often paid by charterers, and charter rates typically do not reflect the value of fuel savings.

“All Hands on Deck” for Energy-Efficient Shipping

Overcoming these barriers will require coordinated action across the maritime ecosystem. The authors stress the need for “all hands on deck,” involving policymakers, industry participants, ports, and financiers.

Policy action can strengthen operational and technical performance standards, while industry-led demonstration projects can further validate the benefits of energy-efficient shipping. Ports can contribute through digital solutions that optimize port calls and enable just-in-time arrivals, and financiers can develop instruments that more equitably distribute fuel-saving benefits when they do not accrue solely to asset owners.

The article concludes that fuel-efficient shipping offers significant short-term and long-term economic and social benefits, presenting the maritime sector with a timely opportunity to reduce costs, cut emissions, and improve public health.