Energy Efficiency in the Shipping Industry

Navigating Towards 2030 Climate Targets with BDO

Due to global regulatory frameworks, the shipping industry is currently on a decarbonisation journey towards 2030. However, there are still a lot of innovations and initiatives needed to make this journey successful. Especially with the next long-term goal of reaching net zero by 2050 in mind. In what ways can the industry make this transition possible and how can BDO help you as a company in this journey? 

Where does the shipping industry currently stand in terms of energy usage?

Today’s commercial structure of the shipping industry currently obstructs access to significant energy efficiency improvements. To unlock the potential for emissions reductions, ­environmental targets should be integrated into commercial contracts, encouraging industry players to prioritise energy efficiency. One possible solution is a travel-based fuel budget, which rewards operators who use less fuel and helps the industry meet its 2030 climate targets.

Where does the industry want to go?

Future trends point to a likely reduction in overseas trade volumes between 2030 and 2050, mainly focusing on cargo that can be better produced locally than transported. To achieve zero emissions by 2050, the industry will need new ships powered by renewable fuels, supported by long-term off-take agreements. This shift will require a new investment approach, with an emphasis on counterparty risk and long-term planning, but offers a path to significant emission reductions.

How can BDO help?

At BDO, we are up-to-date on the latest trends and developments in ESG and have a lot of expertise in the Transport & Logistics industry. In the journey towards a sustainable future, BDO is a guide that can help with, among other things, integrating ESG into your daily operations and strategies, for example by improving your energy efficiency according to current legislation. This includes managing the risks and optimising your financial performance in a dynamic market

Want to know more about how we can help you with your sustainability journey?

Check out our ESG services: https://www.bdo.be/en-gb/services/esg-sustainability

Do you want to know more about the decarbonisation of the shipping industry or are you curious about other trends and challenges this sector will face? Then read the full Shipping Market Review by Danish Ship Finance.