- CEO of Lloyd’s Nick Brown says shipping cannot decarbonise without government backing and consumer support.
- He warns that the IMO’s climate delay shows the huge cost and political barriers facing the industry.
Political Delays Show a Bigger Problem
As reported by Lloyd’s list, chief executive Nick Brown says the maritime sector cannot reach net zero by acting alone. The political divide that postponed the IMO’s major climate vote in October shows that shipping faces the same financial and political challenges slowing down the global economy.
Brown noted that governments have not been honest with consumers about the true price of the transition. He stressed that reaching net zero will require trillions of dollars, and this cannot fall only on shipowners. Without government leadership and consumer acceptance, the industry will not move fast enough.
Why Green Fuels Need Global Demand
According to Brown, hydrogen-based e-fuels are still extremely costly. Producing them at meaningful scale will require strong demand from other heavy industries like steelmaking. Shipping alone cannot support the investment needed to create a new global fuel system.
With the IMO delaying its climate vote — including the world’s first global carbon price — maritime now sits in what many describe as a “green purgatory”: technically ready, but politically blocked.
Shipping Cannot Transition Faster Than Others
Brown explained that shipping relies on residual fuel, a cheap by-product of refining crude oil. As long as the world economy depends on fossil fuels, this fuel will remain available. Because of this, maritime cannot realistically transition faster than aviation, steel, cement or chemical industries.
“We shouldn’t imagine we can create a new fuel paradigm alone,” he said. The bigger challenge is reducing the world’s overall demand for crude.
Technical Progress Is Real But Needs Backing
Despite the policy delays, Brown says the industry has made major technical progress. Alternative fuels are proving viable, and the next 12 months will bring further demonstrations of what new engines and systems can do.
He believes the sector will soon have the skills and safety procedures ready for multiple fuel paths — but global alignment is still missing.
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Source: Lloyd’s list
