The maritime sector plays a critical role in the global shift towards net-zero emissions. Shipping accounts for up to 3% of global CO2 emissions, exceeding aviation, and if unchecked, emissions could soar by 2050 with rising international trade volumes. Greening global supply chains also depends critically on maritime emissions; without greener ships, the goods they carry cannot be green either. The shipbuilding industry bears the responsibility to design and build vessels that are digitalised, energy-efficient, and capable of using alternative fuels to pave the way towards a carbon-neutral future.

While subsidies can lead to market distortions, overcapacity, reduced profitability and financial strain in the industry, they remain a critical tool for advancing decarbonisation efforts in ship construction. However, a trend is emerging: despite the increase in subsidies, they are not consistently aligned with decarbonisation objectives. Often, subsidies focus on downstream infrastructure and overlook the urgent need to advance the uptake of technologies that enable ships to become more efficient and capable of using alternative fuels.

Shipbuilding and maritime equipment industries worldwide are grappling with labour and skills shortages. Experts estimate that 40% of the workforce in these industries will retire in the next decade while the green and digital transitions are introducing new skill demands. At the same time, these industries struggle to attract and retain skilled and young talent, exacerbated by increasing international worker mobility. Additionally, there is an ongoing challenge to address the underrepresentation of women and protect the rights of vulnerable workers in the sector.

Achieving net-zero emissions in the maritime industry requires substantial investments, both at sea and ashore, as current alternative fuels and technologies come at a premium. Green finance plays a crucial role in this transition, with an increasing number of financial institutions funding the development of zero-emission ships and ensuring the long-term viability of new, sustainable energy supply chains. A key development is the rising emphasis on export credits for low and zero-emission vessels, aiming to facilitate the industry's transformation by reducing the financial burden of adopting greener solutions.

The global maritime fleet is ageing, with vessels averaging 12.6 years old in 2023. Meanwhile, stringent decarbonisation regulations from the International Maritime Organization and national efforts are intensifying. This trend is driving heightened demand for new ships and retrofits, posing both opportunities and challenges for shipbuilders worldwide. To navigate this landscape, we need stronger intergovernmental co-operation, policy transparency and an in-depth understanding of market dynamics. These will be pivotal to shaping coherent and effective decarbonisation strategies and promoting sustainable industry development across shipbuilding economies.