A changing business environment means shipping companies need to adapt to ever stricter emissions regulations, pressure from cargo owners, the public, and the tightening requirements of investors.

The initial IMO GHG Strategy and the first wave of regulations are already impacting the design and operations of all ships. All ships will need to fulfil the minimum requirements.

However, commercial pressure may incentivize shipowners to aim higher. Especially if poor performers become less attractive on the charter market, and struggle to access capital.

We expect three key fundamentals – regulations and policies, access to investors and capital, and cargo-owner and consumer expectations – to drive ship decarbonization through the 2020s and onward. They are supported by frameworks and standards specifying sustainability evaluation criteria and targets, GHG emission calculation methods, and reporting requirements.

Key drivers influencing ship decarbonization:

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