Industry Perspective on the Sustainable Transport Investment Plan
The World Shipping Council applauds the European Commission for outlining a clear financing framework to accelerate renewable and low carbon fuels. With twenty million tonnes of sustainable fuels required for aviation and maritime by 2035, shipping alone could feasibly absorb fourteen million tonnes if costs fall to competitive levels.
Why Price Bridging Matters
Even with more than one hundred fifty billion euro already invested in dual fuel vessels, operators still rely on conventional bunkers because renewable alternatives can cost twice as much. The Council therefore emphasises three complementary measures:
· Price bridging support such as contracts for difference to lock in affordable rates.
· Targeted production incentives that reward early scale ups of ammonia, methanol and e diesel.
· Market de risk mechanisms connecting fuel makers and buyers through long term purchase agreements.
A lesser known insight is that reducing perceived market risk can influence ship financing directly. Analysis by Copenhagen Business School shows that a ten basis point drop in lending rates for new builds lowers total ownership cost by five percent, enough to tip investment decisions toward greener propulsion.
Infrastructure and Certification Go Hand in Hand
Finance alone will not deliver emissions savings. Ports require new storage and delivery systems to handle alternative fuels safely. The upcoming EU Port Strategy is expected to outline support for shore power and green bunkering corridors, ensuring that vessels can refuel reliably across the continent. Equally important, robust certification will protect environmental integrity and give investors confidence that claimed carbon benefits are real.
Conclusion
By pairing financial innovation with infrastructure planning, the Sustainable Transport Investment Plan can turn thousands of willing ships into genuine climate solutions. The shipping sector stands
ready to collaborate and convert existing dual fuel capacity into real world emissions reductions once renewable fuels reach cost parity.