Decarbonizing the shipping sector to meet global climate target is an urgent task. However, the significant cost gap between fossil fuels and zero-and near-zero fuels remains a prohibitive barrier to the green transition of shipping.

Costs for the required port infrastructure, bunkering facilities and new vessels only add to this cost gap.

Understanding exactly what this cost gap is will be critical.

Having a clear understanding of this cost gap is a prerequisite for both investors and donors (including governments and development banks) to make informed decisions about supporting concrete decarbonization projects.  

Building on years of expertise and methodological development, the Mærsk Mc-Kinney Møller Center for Zero Carbon has released a model that can help stakeholders estimate the cost of decarbonizing a shipping route, thereby concretizing business cases and enabling investments so we can go from on-paper-only green corridors to actual steel in the sea.

The purpose of the cost model is to calculate the incremental cost of green at each stage of the value chain, as well as the impact of global and national regulation. 

The green corridor cost model enables a better understanding of the requirements and effects of such strategic investments.

Now that the International Maritime Organization has agreed a Net Zero Framework, green shipping is closer to becoming reality. This means it is time for implementation, and implementation is easier with good planning. The green corridor cost model allows for such planning, and we hope it will catalyze real investments and thereby bring us closer to zero carbon shipping. 

Read more about green corridors