It is possible for sustainable shipping fuels to reach cost parity with fossil fuels by 2035, but only with the help of decisive emissions policy, according to a new report from technology company Wärtsilä.

Shipping is responsible for transporting 80% of world trade. While it is the most efficient and environmental means of transporting goods, it emits 2% of global emissions. The International Maritime Organisation (IMO) has set a target to achieve net zero emissions by 2050, but without action emissions could reach more than 45% by 2050.

Wärtsilä’s report Sustainable fuels for shipping by 2050 – the 3 key elements of success finds that while existing decarbonisation solutions, such as fuel efficiency measures, could cut up to 27% of emissions, sustainable fuels will be a critical step in eliminating the remaining 73%. However, radical action is needed to scale them.

As the report highlights, the industry suffers from a ‘chicken and egg’ situation in that ship owners won’t commit to a sustainable...