Every five minutes, a Danish-operated ship calls at a port somewhere in the world, helping to connect markets and keep global trade flowing. With a strong maritime heritage, Denmark is one of the world’s leading seafaring nations, and its shipping industry is committed to achieving the International Maritime Organization’s (IMO) goal of climate neutrality by or around 2050, in line with the Paris Agreement.

Reaching this goal, however, will not be easy. Fully decarbonising the current global fleet (12.6 EJ) requires renewable capacity of 1,500–2,000 GW—the equivalent of 100,000–133,333 large wind turbines. Alternative fuels will play a key role in the transition, with the potential to reduce greenhouse gas emissions by over 80 percent.

Danish Shipping, a trade and employer organisation, is committed to achieving climate neutrality by 2050. Ahead of the European Shipping Summit 2050, it has published ten recommendations for the Danish government to accelerate the production of green fuels for the shipping industry. With its ten recommendations Danish Shipping is suggesting a way forward for the sector to undergo its green transition.

“In Danish Shipping, we recognise that the climate crisis is both a challenge and an obligation. This understanding is deeply embedded in both large and small shipping companies, many of which have already launched ambitious initiatives to promote more climate-friendly shipping. However, as an industry, we cannot solve this challenge alone.”

Anne H. Steffensen, Director General and CEO Danish Shipping.

Danish Shipping’s 10 recommendations

1. Diplomatic offensive for ambitious global regulation

Danish Shipping recommends that the Danish government prioritise a diplomatic offensive to secure ambitious global regulations for shipping within the IMO. Denmark plays a key role and has a crucial opportunity to shape the specific regulations that must be adopted in 2025 to support the IMO’s 2050 goals.

2. Targeted scale-up of green fuel production

The global shipping’s share of global greenhouse gas emissions is 3 percent. If this is to be reduced, green fuels must play a crucial role. Danish Shipping propose that the government focus on scaling up green fuel production for shipping. A key prerequisite for this is the targeted provision of temporary financial support and risk reduction in an emerging market.

3. National earmarking of funds from the EU-ETS for shipping’s green transition

DKK 3.8 billion is expected to be contributed annually by Danish Shipping to the EU Emissions Trading System (EU ETS). This is a new initiative that, from 2024, includes CO₂ emis­sions from maritime transport in the EU’s existing emissions trading system. Danish Shipping suggest that the government allocate a larger share of revenue from the EU ETS to support shipping’s green transition. The primary focus of these funds should be accelerating green fuel production.

4. Support schemes in Denmark for shipping’s green transition

As the shipping sector is fully integrated into the emissions trading system, new funds will be released, which Danish Ship­ping suggests should be used for national support to drive the green transition forward. Danish Shipping recommends that Den­mark allocate more national funding to support the green transition of shipping and advocate for the EU to do the same.

5. Support schemes in the EU for shipping’s green transition

600,000,000 metric tonnes of e-ammonia are required to replace the current consumption of fossils fuels. Denmark should advocate for earmarking funds within the EU for the shipping sector and allocating additional financial resources to tenders dedicated to green fuel production for shipping under the Hydrogen Bank. In addition, dedicated resources should be allocated to the Danish Energy Agency’s funding acquisition secretariat to ensure a strong maritime sector focus.

6. Establishing strategic partnerships for green fuels production

By acting now, Denmark can not only reduce the maritime sector’s climate footprint but also strengthen its position as an innovative and responsible green shipping nation. Danish Shipping therefore urges to establish strategic partnerships with selected countries to secure access to resources, technology, and markets crucial for developing and scaling sustainable fuel production.

7. Creating a green corridor in the Nordic countries

To make the Nordic region a frontrunner in green shipping and by acting fast the Nordic countries can position themselves international players and leverage the establishment of green corridors as an economic advantage. The Danish government could therefore benefit from prioritising green shipping cooperation in the North and Baltic Seas, including concrete green routes.

8. Development and implementation of a PtX strategy for the shipping industry

Political clarity about PtX for the shipping industry in Denmark and the EU will ensure that the maritime sector, as a hard-to-abate industry, gains certainty regarding the supply of green fuels – a crucial step toward achieving net-zero emissions. Danish Shipping believes a dedicated PtX strategy will provide the necessary clarity for shipping companies regarding what they can expect and plan for in Denmark and the EU.

9. Fulfilling ambitions for the deployment of renewable energy

Politically binding targets for renewable energy deployment play a central role in driving green fuel production for shipping. Danish Shipping endorse that the government fulfill its ambitions for the rollout of renewable energy by implementing the political agreement Danmark kan mere II.

10. Establishing necessary infrastructure in ports

Danish Shipping recommends that the government, based on the recommendations of the Danish Havnepartnerskab (Port Partnership), ensure the development of essential infrastructure in relevant ports to meet national and regional demand for future port services.