The transition of the global shipping sector can unlock benefits for developing countries by increasing demand for investments in ports, education of skilled workers and green alternative fuels, thereby accelerating the development of renewable energy. To unlock these opportunities, global regulation is key to ensure a level playing field, de-risk the required investments and to support the development of the needed infrastructure in developing countries.

The IMO Net-Zero Framework includes a global fuel standard, a reward for the use of renewable fuels and a payment for excess emissions. Besides creating incentive for uptake of new green fuels by narrowing the price gap between cheaper fossil fuels and renewable-based alternatives, the pricing mechanism provides funding to support the least developed countries and the small island developing states. This funding helps ensure a just and equitable green transition for these nations. The scope and content of this support mechanism will be developed in 2026.

Under the right national framework conditions, the transition of the shipping sector can open the door for large infrastructure investments and clean energy technology development. It can also  drive the creation of new green jobs and support the upskilling of the local workforce, including seafarers. The Global Maritime Forum estimates that investments needed to reach net-zero emission shipping in 2050 will amount to between EUR 1–1.4 trillion. The biggest share of investments is needed in the land-based infrastructure and production facilities for low carbon fuels, which make  up around 87 percent of the total investments. This creates opportunities for developing countries, particularly for those with significant renewable energy resources to produce green fuels at scale.

Well positioned countries include a number of developing countries, characterised by their low-cost renewable energy sources combined with other advantages, such as a strategic proximity to major  hipping routes. The transition of the shipping sector also offers an opportunity for new and more high-skilled jobs in the maritime sector both in ports and on board ships.