Maersk, MSC & Hapag-Lloyd: Will Shipping Ever Reach Net Zero

International shipping produces about 3% of global greenhouse gas emissions according to the World Bank. If it were a country, it would be the sixth largest emitter in the world. However, shipping moves around 80% of all global trade and is the most efficient form of commercial transport according to the International Chamber of Shipping. This industry cannot come to a halt without catastrophic consequences for global supply chains.

COP28 saw shipping CEOs come together to issue a joint declaration calling for an end date for fossil-only powered new builds and urging the International Maritime Organization (IMO) to create the regulatory conditions needed for the transition to green fuels. 

“We believe that a regulatory framework and clear targets are crucial to accelerating the introduction of alternative fuels and reducing our carbon footprint,” says Rolf Habben Jansen, CEO of Hapag-Lloyd. “This commitment is in line with Hapag-Lloyd's goal of achieving a net zero carbon fleet by 2045 and reflects our industry's unwavering commitment to environmental responsibility.”

Vincent Clerc, Chief Executive Officer of Maersk, says: “A.P. Moller - Maersk wants to accelerate the green transition in shipping and logistics and a crucial next step is to introduce regulatory conditions which ensure that we create the most greenhouse gas emission reductions per invested dollar. This includes an efficient pricing mechanism to close the gap between fossil and green fuels and ensuring that the green choice is easier to make for our customers and consumers globally.”

Soren Toft, Chief Executive Officer of MSC, says: “Shipping is at the forefront of technological innovation when it comes to decarbonisation and at MSC our fleet renewal strategy includes 100 dual fuel vessels. We are proud to be part of this unprecedented collaboration with our peers and it is only right that together we follow this path towards net zero that we must achieve by 2050.”

At the Marine Environment Protection Committee’s (MEPC) 83rd session in April 2025, the IMO approved a net zero framework that combines a fuel standard with a global greenhouse gas pricing mechanism for ships. The IMO hopes this will be adopted at a meeting from 14 to 17 October 2025 and enter into force from 2027. 

Read the full feature in Issue 57 of Sustainability Magazine.

What is the IMO’s net zero framework?

The framework includes two key elements: a global fuel standard and global greenhouse gas emissions pricing mechanism. The fuel standard will require ships to gradually reduce how polluting its ship fuel can be and the pricing mechanism will contain set prices on the greenhouse gases ships emit to encourage the industry to lower emissions. The IMO is looking to apply a carbon price of US$100 per tonne of CO₂ equivalent.  

This applies to all oceangoing ships with more than 5,000 gross tonnage as these ships are responsible for more than 85% of global shipping emissions and already covered by reporting requirements for fuel data collection. The IMO says that while ships under 5,000 gross tonnage are not covered, discussions are underway to possibly include ships between 400 and 5,000 gross tonnage in the future. 

Ship emissions are measured using greenhouse gas fuel intensity (GFI) that calculates how much greenhouse gas is emitted for each unit of energy used, expressed in gCO₂eq/MJ. This framework covers emissions from the entire fuel lifecycle and data must be independently certified through a Sustainable Fuel Certification Scheme recognised by the MEPC. 

If a ship exceeds the set compliance thresholds, the deficit must be balanced by using surplus units transferred from other over-compliant ships or banked from previous years or remedial units acquired by paying into the IMO Net Zero Fund. If a ship switches to zero or near zero emissions fuels, it qualifies for financial rewards. Each ship’s compliance will be tracked through a new digital IMO GFI registry.

Positivity and pushback

The IMO’s framework has support. In January 2025, a joint submission to the IMO from 47 governments, including Greece, Japan, Korea and the UK, supported a greenhouse gas emissions pricing mechanism for international shipping. 

In September, the Getting to Zero Coalition, with members including Iberdrola, BP, Unilever and Citigroup, issued a statement that says: “It is crucial that constructive negotiations continue and that negotiators agree on guidelines for implementation that can deliver on the IMO’s strategy. The foundation for success is there if the political will to adopt the framework in October and refine it over time remains firm.  

“Within the industry, the work on the transition has begun. New vessels that can use alternative fuels are being ordered, and the supply chain for alternative fuels has recognised the shipping sector as an important new customer. In our view, a failure to adopt the framework risks significant negative consequences for this momentum.”

Not everyone agrees. In late January 2025, a group of countries including Brazil, China and South Africa sent a letter to IMO warning of negative trade impacts from a universal GHG contribution. 

In April 2025, the United States withdrew from the carbon pricing talks and urged others to follow. US Secretary of State Marco Rubio, Commerce Secretary Howard Lutnick, Energy Secretary Chris Wright and Transportation Secretary Sean Duffy said in a statement that US President Donald Trump’s administration will “not accept any international environmental agreement that unduly or unfairly burdens the United States or harms the interests of the American people” and described the IMO’s framework as “effectively a global carbon tax on Americans levied by an unaccountable UN organisation”. “Our fellow IMO members should be on notice that we will look for their support against this action and not hesitate to retaliate or explore remedies for our citizens should this endeavour fail,” the statement concludes.

On the launch of the 2025 American Bureau of Shipping (ABS) Sustainability Outlook, ABS CEO Christopher Wiernicki said that “shipping and the IMO are on different trajectories”. “There is no clear pathway for green fuel availability and scalability and infrastructure support,” he said. “LNG and biofuels are mission critical to any success and should not be overlooked, over penalised or discarded in the net zero regulation. Quite frankly, achieving net zero for shipping by 2050 looks like a wildcard.”

Hapag-Lloyd’s sustainability strategy

Hapag-Lloyd’s overarching sustainability goal is to reach net zero fleet operations by 2045. 

“We have advanced our decarbonisation efforts by adding new, state-of-the-art vessels to our fleet, placing additional newbuild orders and accelerating our fleet upgrade programme,” says CEO Rolf Habben Jansen in its 2024 Sustainability Progress Report. 

The company’s Fleet Upgrade programme, launched in 2022, aims to improve the efficiency and environmental performance of its ships. It has also ordered 24 large container ships that will be built in China and equipped with “state-of-the-art, low-emission and fuel-efficient high-pressure liquefied gas dual-fuel engines”. 

Rolf explains in the report: “Our sustainability journey continues. Building a just, safe and clean industry is an ongoing responsibility and requires continuous collaboration between industry stakeholders.” 

Sustainability at Maersk

Maersk aims to reach net zero by 2040, and its strategy includes introducing the world’s first large dual-fuel methanol fleet. In December 2024 it completed an order of 20 dual-fuel owned vessels with a total capacity of 300,000 twenty-foot equivalent units (TEUs).

The company says that dual-fuel vessels are central to its decarbonisation plans, capable of reducing greenhouse gas emissions by 65% to 90% through the use of bio- and e-methanol compared to conventional fossil fuels. Maersk also aims to deploy dual-fuel liquefied methane vessels, aiming to use bio- or e-methane as soon as possible. 

“Let's get this done,” says Lene Bjørn Serpa, Director, Head of Corporate Sustainability at Maersk on LinkedIn. “We have the technology and the willingness - we just need the clear regulatory framework to accelerate the energy transition in the shipping industry.”

MSC’s sustainability impact

MSC says that it is committed to an energy transition targeting net zero decarbonisation by 2050 and is investing in a massive newbuilding programme and far-reaching retrofit plan. 

By 2027, the company expects more than 100 dual-fuel newbuilds and already has many in service. These will allow for 20% of MSC’s fleet capacity in TEU to be transported by dual-fuel vessels, an increase from around 4% at the end of 2023. 

MSC has signed an MoU with integrated energy company Eni to explore the potential use of LNG alongside lower-carbon energy carriers such as HVO and bio-LNG. This is alongside offering its customers a Biofuel Solution, a certified carbon insetting programme designed to reduce emissions and contribute to accelerating decarbonisation in the shipping industry. 

On the release of its Sustainability Report, MSC CEO Soren said: “With the MSC family’s talent, passion and entrepreneurial spirit we are contributing to the net zero transition and building value chain resilience. Through collaboration, investment and innovation, we will navigate these challenges together.”

Read the full feature in Issue 57 of Sustainability Magazine.