Sustainable Futures
With features on Energy, EV Revolution and Shipping
“Continued
Jonathan Cobb, Senior Programme Lead for Climate, World
Page
www.businessandindustry.co.uk
“Incentives
Thomas A. Kazakos, Secretary General, ICS Page 13
The GB energy AI future is bright – but competition
Artificial intelligence in the energy sector isn’t about fully autonomous power stations yet, but it’s already optimising products, services and operations across the industry.
As the energy industry innovates, the system continues to become smarter, helping offset some of the costs and risks faced by industry and its customers.
AI in energy is already being used To begin with, AI is already giving us a better idea of what real-time supply and demand looks like across the network, with more accurate and efficient forecasting, getting electricity to the right place at the right time. These benefits will only multiply as more renewable electricity gets added into the grid by solar and wind farms (NESO predicts AI could improve solar forecasting accuracy by 33%).
Some AI energy uses are more abstract. For example, National Grid has used AI to analyse whale migration patterns alongside six years of vessel data, processing 4.7 billion data points and 775
Anonymised real-time meter data is being optimised by AI to proactively identify customers who might be vulnerable, so they can get support as quickly as possible.
million kilometres of vessel traffic to establish whether wind farm operations were disturbing whales’ natural behaviour (they were not). Closer to home, suppliers are competing to use generative AI to improve customer service experiences, such as triaging contacts and prompting follow-ups. Anonymised real-time meter data is being optimised by AI to proactively identify customers who might be vulnerable, so they can get support as quickly as possible.
Pro-innovation approach
These benefits are informing the Government’s wider vision of the UK as a globally competitive AI-friendly powerhouse. The UK AI market is already worth more than £70 billion, making it the third-largest AI market in the world. However, there is scope for growth. This is why the energy sector supports the Government’s direction to Ofgem and other regulators to adopt a pro-innovation approach to AI rulemaking, so customers and the system are protected and our competitiveness is maintained, but not in a way that slows progress or investment. So, useful measures such as the incoming AI technical sandbox — a controlled environment in which energy providers can safely test and evaluate AI models and behaviours — should be welcomed.
Why the UK gas network is now ‘more reliable, safer and greener’
Greener gases will play a major role in the energy transition.
The gas network heats homes and powers industry. To help the UK reach net zero, it’s playing its part by reducing emissions, supporting new tech and championing greener gases.
Gas is the unsung hero of the energy system, says Angela Needle, Director of Strategy at Cadent, the UK’s biggest gas network, which transports gas to 11 million UK homes and businesses.
Modernising the UK gas network
When people think about gas — if they think about it at all — it’ll be about how their boiler heats their home and provides them with hot water. “That’s important, of course,” agrees Needle. “But gas does a lot more than that. It’s essential for businesses that rely on hot temperatures, such as glass, brick and steel manufacturers.
“Without gas, we wouldn’t have buildings or cars or wind turbines. Gas heats everything from care homes to swimming pools, and it generates electricity when the wind isn’t blowing. It’s also very reliable and safe.” Yet, people take it for granted because it’s mostly hidden underground in a network of pipes.
Currently, that network is undergoing a vital replacement programme, which has been ongoing for around 30 years and is due to be finished in 2032. “The old iron gas mains are being replaced with more efficient plastic ones,” explains Needle. “Plastic mains are safer, and they leak less. This reduces the amount of methane going into the atmosphere which, in turn, reduces
overall carbon emissions.” Cadent is also investing in innovative technologies that enable leaks to be discovered sooner. Both of these measures could significantly reduce methane emissions over the next seven years.
Delivering a three-pronged decarbonisation strategy
However, network upgrading is just one part of the three-pronged decarbonisation strategy on the road to net zero. “We’re also helping people use less gas,” explains Needle. “We’re doing that by supporting the adoption of new technologies while maintaining the reliability and resilience of a gas connection.”
For example, if domestic users and businesses install a hybrid heating system — combining a lower carbonproducing heat pump with a gas boiler — they can get most of the heat they require from the heat pump but have a boiler as a backup if needed. The network is also championing low-carbon gases such as hydrogen. Cadent believes that hydrogen will play a major role in the transition to net zero and, in a trial, has demonstrated that existing boilers and cooking appliances can run on gas that is a blend of up to 20% hydrogen and natural gas. It has also successfully introduced blended gas into industrial manufacturing environments. “There are industries
up and down this country that cannot operate without gas and are looking to hydrogen to run their factories in the future,” says Needle.
Making the best use of the existing gas network
Meanwhile, biomethane — the result of the treatment and purification of biogas, a by-product of organic materials such as food and agricultural waste — is a completely renewable replacement for natural gas. “Biomethane is not fossil methane so doesn’t add to carbon emissions,” says Needle. “We just have to get more of it into the gas network.”
Thankfully, a big benefit of the mains replacement programme is that the new plastic pipes are compatible with these future, greener gases. “So, if we slowly decrease the amount of fossil gas and increase the amount of hydrogen and biomethane, homes and businesses will become greener over time,” explains Needle. “We think this ‘mixed molecule’ approach is more pragmatic. The gas network already exists and works really well. We’re investing in it to make it more reliable, safer and greener. In the move to net zero, we have to understand that decommissioning it or replacing it with something else would be significantly more expensive. Let’s make the best use of it instead.”
Paid for by Cadent
INTERVIEW WITH Angela Needle Director of Strategy, Cadent
WRITTEN BY Tony Greenway
Image provided by Cadent
Positive performance of nuclear reactors continues
Nuclear power stands uniquely positioned to deliver clean and reliable energy at scale in response to surging global energy demand, growing pressures on energy security and commitments to achieve decarbonisation goals.
In 2024, nuclear reactors generated more electricity than ever before, supplying 2,667 terawatt-hours (TWh) of electricity.1 This surpasses the previous record of 2,660 TWh set in 2006 and marks a 66 TWh increase from 2023. Nuclear supplies 9% of global electricity demand, reinforcing its key role as part of the world’s energy mix. To meet our global energy and climate goals, as electricity demand grows, it is a record that needs to be bettered every year.
A major win for climate
Nuclear reactors helped avoid 2.1 billion tonnes of carbon dioxide emissions in 2024 from equivalent coal generation 2 — if a country emitted that amount of carbon dioxide, it would rank as the fifthhighest emitting nation. That’s enough to wipe out the carbon footprint of the entire global aviation industry nearly twice over, highlighting nuclear’s role in mitigating climate change.
Reliable performance across the board
Nuclear plants continued to perform strongly, with a global average capacity factor of 83%, up from 82% in 2023.3 This metric, which measures how consistently a power source operates at full capacity, has
remained high since 2000. These high levels of performance remain high regardless of age, with reactors that have operated for more than 50 years achieving some of the highest capacity factors.
Global capacity must expand
Seven new reactors came online in 2024, including three in China and one each in France, India, the UAE and the USA. Globally, 70 reactors are under construction, with nine new projects launched last year. However, to meet rising energy needs and climate targets, more construction starts are needed to achieve the global goal to at least triple nuclear capacity by 2050.
Energising the future now
Continued investment and expansion are essential to ensure nuclear energy plays its full part in a sustainable future. As the world faces growing energy demand, climate pressures and the need for energy security, nuclear power stands out as a clean, reliable and scalable solution.
References:
1. International Atomic Energy Agency (IAEA). 2025. The database on nuclear power reactors.
2. United Nations Economic Commission for Europe. 2022. Carbon neutrality in the UNECE region: integrated life-cycle assessment of electricity sources. 3. World Nuclear Association. 2025. World Nuclear Performance Report.
WRITTEN BY Jonathan Cobb Senior Programme Lead for Climate, World Nuclear Association
Image provided by World Nuclear Association
Proving that effective regulation can power major energy transition progress
Ofgem’s provisional approval of £24 billion for Britain’s energy networks marks a pivotal moment in a cleaner energy future and the first step in a £80 billion electricity network investment programme.
By unlocking the finance required to move green energy into the grid, we’re showing that regulation isn’t stifling progress; it’s driving it.
Unprecedented grid investment
Beyond stabilising bills, investment in the grid is a must for businesses across the country. As industries increasingly adopt energy-intensive technologies like AI, upgrading the electricity grid to support domestic power generation will be essential for unlocking their full economic potential. The scale is unprecedented. This investment will fund more than 80 transmission projects, 4,400km of upgraded lines and 3,500km of new circuits, unlocking up to 126 GW of clean power by 2030.
Storing power for stability
Ofgem is also driving forward the first major investment in Long Duration Electricity Storage for 40 years. These systems store electricity, making them useful when wind and solar power drop. They’ll act as a backup for the grid and help reduce the need for ‘constraint costs’ — the money paid to windfarms to stop generating when there’s more electricity than the grid can handle.
That’s not just capacity; it’s capability. It’s the infrastructure that will allow wind farms in Scotland and solar parks in the South of England to power homes across the UK without bottlenecks or waste. By the end of this investment period, consumers will benefit from a more stable energy system that protects families’ and businesses’ energy bills from geopolitical events beyond our control.
Keeping consumers first
Ofgem’s scrutiny ensures value for money for billpayers; we bear down on costs while maintaining the required pace of change. Through our network regulation, we ensure only the necessary costs of the system are recovered, and we will continue to base these decisions on consumers’ best interests.
The energy transition isn’t optional; it’s inevitable, and an area in which Great Britain can be a world leader. The provisional approval of this funding is a bold step forward for the transition. We must ensure it becomes a reality.
Britain’s energy transition is popular, proven and under attack
The UK’s clean energy transition is accelerating. In 2024, renewables generated over half of the country’s electricity for the first time, with low carbon sources now contributing 65%.
This growth marks a system wide transformation, as wind, solar, green gases and battery storage combine to deliver cleaner and more resilient power across the grid.
Coal-free future emerging
Few moments have captured this shift more vividly than the recent demolition of Cottam Power Station’s cooling towers in Nottinghamshire. For over 50 years, they dominated the surrounding skyline, symbolising Britain’s reliance on coal. Their removal was a remarkable engineering feat and a clear signal that we are moving decisively toward a future powered by clean energy. Coal was completely phased out last year.
Cheap renewable generation must feed through into lower electricity prices.
This transition is fast becoming a British success story: boosting jobs, driving technological innovation and strengthening national energy security. By relying less on imported fossil fuels, Britain shields itself from volatile markets and geopolitical shocks. Achieving ambitious climate targets will require a broad mix of technologies,
as well as a smarter system that balances generation, storage and demand flexibility.
Majority support renewables
Crucially, the public is firmly behind this. Polling shows 80% of people support expanding renewable power and sticking with climate goals. Even among Reform voters, the majority back the shift, evidence that clean energy is now mainstream policy, widely understood as a positive for the UK. Yet, political attacks are mounting. By backing fossil dependency, critics are advocating for higher import costs, fewer domestic jobs and reduced energy independence — the very opposite of what most voters say they want. Why? The numbers speak for themselves: clean energy is not only proven but popular.
Public trust through savings
One challenge remains pivotal: consumer bills. The transition will only endure if families and businesses feel the benefits. Cheap renewable generation must feed through into lower electricity prices, or detractors will seize the chance to argue the transition is costly and unfair. Ensuring households experience these savings is the key to securing lasting public trust in Britain’s clean energy future.
Hydrogen: the smarter, cheaper answer to Britain’s energy market reform
Unless the Review of Electricity Market Arrangements (REMA) sets clear signals for investment, Britain will keep paying to switch off wind turbines instead of building a smarter, cheaper energy system.
Last month, the Government confirmed it would not pursue ‘zonal pricing’ in its REMA. Instead, ministers will retain a uniform wholesale electricity price across Britain under a reformed national model.
Reform for renewable growth
The need for reform is pressing. In 2024, the UK paid around £1 billion in ‘constraint payments’ to wind farms forced to curtail generation because the grid could not absorb the power. This was clean electricity we could not use, wasted at significant public cost. Unless addressed, this inefficiency will only grow as offshore wind and other renewables expand into the 2030s.
Powering flexibility with hydrogen
A modern electricity system must do more than increase renewable capacity. It must also integrate technologies that provide flexibility, reliability and resilience. Here, low-carbon hydrogen has a distinctive role. Unlike lithium-ion batteries, which are best suited to short-duration balancing measured in hours, hydrogen offers long-term storage: surplus renewable power can be converted, stored for weeks or months and returned to the grid when demand peaks or supply falls. Hydrogen can also generate electricity directly, displace fossil back-up and provide balancing services that reduce volatility. Other options, such as pumped hydro or carbon capture, will make important contributions. Yet hydrogen’s versatility across power, industry and transport, combined with its capacity for large-scale storage, makes it uniquely positioned to address the systemic inefficiencies currently driving up bills.
Seizing the hydrogen opportunity
International experience demonstrates the opportunity. Denmark is already converting excess offshore wind into hydrogen through ‘power-to-x’ projects, reducing curtailment and supporting industrial decarbonisation. Germany is investing billions in a national hydrogen backbone pipeline to connect renewable generation with demand centres. If the UK hesitates, it risks losing investment and competitiveness in the very technologies that could relieve its own grid bottlenecks.
The urgent step is to design a reformed national market that enables hydrogen and other flexible technologies to reduce waste, attract private capital and underpin energy security. Only with a clear market framework can Britain avoid wasting clean power, lower bills for households and deliver on its climate commitments.
WRITTEN BY Clare Jackson CEO, Hydrogen UK
EV Revolution
Pages 07 - 09
What do drivers think about EVs?
Too expensive? Not enough chargepoints? They won’t work for longer trips? When we talk to anyone yet to switch to electric driving, those are the prevailing views.
Ask an EV driver, and it’s a different story: much cheaper to run than my old petrol car; much easier to charge than I realised; fits better into our busy lives; smoother and easier drive. Those are the views of those already driving electric — those who know how these cars work. About 95% of EV drivers never look back.1 So, why aren’t these views cutting through the prevailing myths?
Tackling EV misinformation
Over two-thirds of EV drivers surveyed believe misinformation is a significant barrier to people switching to electric. However, people trust friends and family more than anyone else when considering their next vehicle purchase. With more of us choosing EVs (27% of new cars sold in August were battery electric 2), and the UK’s charging infrastructure rapidly expanding (over 85,000 chargepoints compared to around 8,000 petrol stations3), we have a real opportunity to reset the discussion on EVs and focus on the true benefits these vehicles can bring.
What about EV costs?
That’s not to say that there aren’t still challenges. Upfront costs are still higher than for petrol and diesel equivalents. Salary sacrifice and the Government’s Electric Car Grant lend much support to households looking to buy a new EV. However, the second-hand EV market can be volatile, and we need to look at ways to stabilise and bring second-hand
prices down.
With a driveway and access to home charging, drivers can save around £1,000 a year on running costs. For those reliant on the public charging network, charging costs are greater. There are solutions — cross-pavement technologies, charge-sharing, time of day pricing and workplace charging — that can bring those costs down. We need to promote these options and show that EVs can work for all households.
Expanding EV accessibility
Many drivers with disabilities report that they find EVs easier to drive and ‘refuel’, especially if they charge at home. However, those relying on public charging struggle. We must work harder to raise awareness of accessibility standards around cable weight, space around the car and height of payment terminals. They need to be rolled out so that all drivers can use the charging network.
With a concerted effort across the EV sector to tackle these last remaining barriers, we are close to the tipping point where EVs become the preferred, cheaper and better car for UK drivers. References:
WRITTEN BY Victoria Edmonds CEO, EVA England
Joining forces to launch a shared EV charging platform
Discover the launch of a shared electric vehicle (EV) charging platform, giving fleets nationwide affordable access to depot and office chargers while helping providers monetise underused infrastructure.
WRITTEN BY Paul Hollick Chairman, Association of Fleet Professionals
The Association of Fleet Professionals (AFP) and technology startup Evata are collaborating to launch a new shared charging platform that could revolutionise the way fleets access EV infrastructure nationwide.
Maximising EV charger capacity
The idea is simple but powerful: Association members with spare charging capacity at depots or offices will be able to make it available to other members. For fleets, this means easier access to affordable and convenient charging options beyond home and highway locations. For providers, it creates a chance to generate value from chargers that often sit idle.
The initiative, driven by the Association’s shared charging committee, which comprises 19 organisations, was prompted by AFP research that revealed six in 10 members were interested in shared charging. Over the past year, the shared charging committee explored how such a service might work, covering everything from pricing and booking systems to health and safety.
The outcome was a framework that Evata, selected through a competitive tender process, will now bring to life through an online portal for fleet managers and a
self-serve mobile app for drivers.
Making electrification affordable
Paul Hollick, chair of the AFP, said the collaboration reflects a shared ambition: “One of the factors that impresses us about Evata is their mission to ‘make electrification affordable’ for fleets, working alongside businesses adopting EVs for the first time to ensure they can economically access the infrastructure required.
“In many ways, the work we are undertaking with them reflects this thinking, and we are looking forward to getting the shared charging project moving and delivering for members.”
Access to a fourth channel
Shakeel Ali, Evata’s co-founder, adds: “We’re really excited to be working with the AFP on this platform. It means that in addition to home, work and highway charging, fleets will now have access to a fourth channel through which to power their EVs.”
The Association is now inviting more fleet operators to get involved, either as providers of charging capacity or as users looking for new solutions.
How Admiral is shaping electric car insurance around you
There’s still a lot of debate about EVs. How much tax you need to pay, the availability of public chargers and even the actual tech. But needing insurance that’s built around you is one thing that isn’t under debate. That’s where we come in.
We don’t think insurance should be complicated. For over 30 years, we’ve been evolving our car insurance to make sure it gives customers exactly what they need, and our electric cover is no different.
We explore what EV owners are looking for in 2025 and beyond — and how we’re always listening and adapting to design insurance that works for you.
Why are drivers making the switch?
In May 2025, we ran a survey* to get an idea of what our customers think about owning and insuring EVs. The first thing we asked was why they made the switch from fuel to electric.
Unsurprisingly, one of the top answers was environmental concerns. Drivers are taking emissions and pollution more seriously and thinking about the footprint they leave behind. For lots of you, that means ditching your old petrol or diesel.
We get it — we’re concerned too. But as one of the UK’s leading insurers, we’re in a position to make a positive impact on the environment, starting with our commitment to achieve net zero by 2040.
Not just that, but we’re passionate about supporting our customers when they make sustainable choices too. Offering them EV insurance they can rely on is one of the ways we do that.
What are the bumps in the road?
We know some of you are still worried about how reliable public chargers are: how easy they are to find, if they’ll even work when you get there and how much it’ll cost to use them. It’s understandable — the UK’s charging network is well on its way, but it’s not quite there yet.
Our survey found 47% of customers use public chargers less than once a month. In fact, one in five drivers said they don’t use them at all.
Despite their concerns, our customers seem to worry less after they’ve taken the plunge and bought an EV. It’s clear that once a lot of you go green, you’re not looking back.
Where does Admiral come in?
Even if you can’t imagine your life without an EV now, we know new technologies can still come with a little anxiety – that’s normal. It’s exactly why we’ve spent a lot of time listening to people who have already made the switch and building a policy that evolves with new technologies, so we can cover everything that really matters to EV drivers.
We understand that a lot of you are worried about running out of charge when you go electric,
INTERVIEW WITH Craig Codell EV Product Manager, Admiral
WRITTEN BY Tegan Oldfield
Circular Futures
Pages 10 - 11
Food challenge helps build a circular economy for nature and business
Learn how the circular economy can fix our broken food industry and allow both nature and business to thrive.
Our current food industry isn’t working. The way food is produced, processed and distributed accounts for a third of global greenhouse gas emissions and is one of the biggest drivers of biodiversity loss — but a solution is within reach.
Redesigning food for nature
By embracing the circular economy, brands and retailers can construct the food system of the future – one that is commercially viable while actively regenerating nature. This means promoting healthy and stable soils, boosting local biodiversity and improving air and water quality.
Redesigning our food system is no overnight fix, but the Ellen MacArthur Foundation set out to prove that it is possible. The Big Food Redesign Challenge was launched in May 2023 with the mission to demonstrate that food production can benefit nature, instead of depleting it, by applying circular economy principles to every aspect of food design. This involves 57 innovative producers, startups, suppliers and retailers that rose to the challenge of rethinking and creating products designed to regenerate nature.
Products better for soil and climate
The Challenge has since led to the creation of 141 products in line with our Circular Design for Food Framework. This means that products include upcycled, diverse or lower-impact ingredients grown within regenerative systems. That packaging is designed to be kept in the economy and out of landfill.
Now that the Challenge products have hit shelves in 2025, data confirms that they scored 18% better for nature, with improvements across areas such as climate, biodiversity and soil health. Beyond benefitting the planet, results present a compelling case for businesses looking to lead this change.
Circular design strengthens systems
Designing our food for the circular economy increases supply chain resilience and unlocks new commercial pathways, from marketing opportunities and product innovation to strengthened ESG strategies and regulatory alignment.
Our current food industry is exhausting nature and leaving economic benefits untapped, but the path to a better system has been proven, and it begins by rethinking how we design what we eat.
WRITTEN BY Beth Mander Programme Manager for
Ellen MacArthur Foundation
The great food transformation: from waste to resource
One-third of all food produced is lost or wasted, but a circular approach provides a transformative solution, turning waste by-products into valuable resources.
Adding value to waste resources
In today’s agrifood systems, large amounts of food and agricultural by-products are treated as waste. The Food and Agriculture Organization of the United Nations (FAO) estimates that around 13% of food — the equivalent of 1.25 billion tonnes — is lost globally after harvest and before it reaches retail shelves.1 This presents a major challenge, but a circular economy offers a transformative solution. This model turns what was once a disposal problem into a valuable resource, providing a local, sustainable feed source that reduces the reliance on conventional crops.
A beneficial cycle
A circular approach sets a beneficial cycle between sectors. For example, FAO works to support the transformation of by-products from food processing into nutritious feed for livestock like pigs and poultry. The upcycling of other materials, such as manure, also plays a crucial role. When managed properly, livestock manure can be used to help meet soil nutrient requirements, helping farmers reduce the costs associated
Habit to hero: why the circular shift begins at home
Every day in Britain, we decide whether something goes in the refuse bin, the recycling bin or back into use. Those small choices add up to the future we’ll all live in.
The average UK household generates around a tonne of waste every year.1 That figure shows how much influence our daily decisions can have.
Everyday decisions drive circularity
Transforming our systems towards circular solutions is shaped as much by everyday decisions as by policy or technology. Policies and innovations are important, but on their own, they cannot deliver the change we need.
Circularity is not only about recycling and recovering materials once we have thrown them away; it also means designing products and services that keep resources in play for longer. Refill packaging, repair schemes or sharing platforms all
with the purchase of synthetic fertiliser.
A measurable pathway
To understand these benefits, FAO uses an agrifood systems thinking approach, allowing stakeholders to measure the environmental footprint of these different pathways. By applying this framework to food waste streams, we can quantify positive environmental outcomes like reduced greenhouse gas emissions and less impact on water.
When managed properly, livestock manure can be used to meet soil nutrient requirements, helping farmers reduce the costs of purchasing synthetic fertiliser.
Global guidance for farmers FAO plays a key role in advancing this work globally, providing technical guidance and technical support to its Members and partners, from smallholder farmers to larger agricultural industry partners. By transforming by-products into valuable resources, the organisation is also helping to build a more sustainable, efficient and secure agrifood system for all.
Reference: 1. Food and Agriculture Organization. 2019. The State of Food and Agriculture 2019.
reduce the demand for scarce virgin materials and help prevent waste at source.
Circular model and behaviour change
For instance, when my son eventually outgrows his first bike, we won’t be stashing it in the shed to languish before being discarded. Instead, we’ve chosen to rent it. When he’s ready for the next size up, the old one will go back to the company, refurbished and passed on to the next lucky child. That simple ‘cycle’ captures the essence of a circular economy.
We need to see wider adoption of rental and subscription models, as well as more products designed with repair and reuse in mind. Yet,
behavioural barriers such as habit, convenience, trust and perceptions of hygiene still stand in the way. These are not just technical challenges but mindset challenges, which make behaviour change essential. When behaviour connects with the wider system through smart design, better infrastructure, clear regulation and bold business choices, the impact is multiplied.
Our current linear economy is unsustainable
The food, textiles, packaging and products we use every day generate nearly half of global greenhouse gas emissions, while driving waste, pollution and biodiversity loss.2 Yet, opportunities for change are growing all around us, from refill stations on our high streets to businesses embracing repair and reuse models. By scaling these approaches, we not only cut waste but also unlock green growth and create jobs in repair, remanufacturing and recycling industries. The choice is ours: we can cling to a throwaway culture, or we can build a future where circular living is normalised, not only in boardrooms, but in every home.
References:
WRITTEN BY Adam Herriott Senior Specialist, WRAP
WRITTEN BY
Dominik Wisser Livestock Policy Officer, FAO
Future of Global Trade and Shipping Pages
12 - 16
Safety first in the shift to net zero shipping
The world’s eyes are on shipping as the industry reorients systems, infrastructure and mindsets to cut harmful emissions. The transition to net zero offers huge opportunities for innovation, with alternative fuels and technologies gaining momentum.
Innovations must be both sustainable and safe, particularly for the people who deal with them directly at sea. Without proper precautions, some fuels can be dangerous and even deadly. That’s why fuel safety is a priority for the International Maritime Organization (IMO).
Protecting seafarers and cargo
IMO’s Maritime Safety Committee constantly reviews and updates its regulations and guidelines to ensure international safety standards keep pace with new fuels and technologies, protecting seafarers, ships and cargo. Member States are assessing a range of alternative fuels and technologies — from biofuels, ammonia and hydrogen to batteries — carefully considering risks, hazards and gaps in regulations, as well as ways to address them.
To date, the Committee has approved interim guidance for ships using ammonia, methyl/ethyl alcohols, LPG and fuel cells, with further work underway on hydrogen and low-flashpoint oil fuels. The Committee is beginning a review of the 1981 Code of Safety for Nuclear Merchant Ships to reflect advances in nuclear technology.
APreparing the workforce is equally critical
Research by the Maritime Just Transition Task Force suggests that at least 450,000 seafarers will require additional training by 2030 and more by 2050. To meet this demand, the Maritime Safety Committee has approved interim guidelines on training for seafarers on ships using various alternative fuels and technologies. Fuel and technology-specific guidance is in development.
IMO is working with the Maritime Just Transition Task Force, developing training frameworks to ensure no seafarer is left behind. In parallel, Member States, with input from a wide range of stakeholders, are reviewing the International Convention on Standards of Training, Certification and Watchkeeping for Seafarers (STCW, 1978) so that revised requirements include safety training for all seafarers working with alternative fuels and new technologies.
Decarbonisation that safeguards people
It is clear that decarbonisation will reshape shipping, with impacts on the environment and the global economy. Beyond technical progress and regulation, the focus must be on safeguarding the people at the centre of global trade.
The united republic of shipping: the defence of the global system
In April, the world crossed a decisive threshold. For the first time, an entire global industry agreed to put a price on emissions.
t the International Maritime Organization, nations adopted a net zero framework (NZF) in a moment of extraordinary unity in a fragmented world. Shipping has chosen to lead where others hesitate. As London prepares to host International Shipping Week, it is a timely reminder of the UK’s unique role as a convening force in global maritime governance. Yet, this bold move must be met with equally courageous follow-through.
Shipping compliance costs and funding Shipowners, while supportive of these measures, are voicing real concerns. While the spirit of the NZF is welcomed, the complexity of compliance threatens to overwhelm those without the scale or resources
to navigate an intricate web of penalties and regulations. At its heart, the framework will apply a universal cost to greenhouse gas emissions from ships. This will generate a multi-billiondollar fund, creating a powerful financial tool for supporting the transition to clean energy. However, that support will only materialise if governments allocate those funds with clarity, fairness and urgency.
Signals to fuel producers
To date, the discussion has centred on deterrence. Incentives for cleaner fuels are not a luxury; they are a lynchpin. It is only through clear, bankable incentives that fuel producers will commit to delivering the infrastructure that low and zero-emission shipping demands.
Without this, even the most willing shipowners will be stranded in a system that punishes ambition without enabling action.
Signals to the market must be bold, not blurry — and timing matters. The shipping industry is already navigating a storm of pressures, from violence in the Red Sea to mounting disruption of critical global trade routes.
Unified course for shipping
Governments have a duty now to move with urgency and certainty. Fuel standards must be defined without ambiguity. In October, when the IMO reconvenes, the world expects detail and simplicity — not just commitments, but mechanisms. Regional initiatives such as the EU Emissions Trading Scheme (ETS), though well-intentioned, risk fragmentation at a time when unity is essential. ICS has rightly called for convergence under a single transparent IMO system. Shipping needs one course, one compass, one standard.
In an age marked by geopolitical division, shipping has done something rare: it has acted globally. Now, governments must do the same: support these developments and scale up zero-emission fuels. The world’s vessels are ready to transition. What they need is a fair wind and a steady helm.
WRITTEN BY Thomas A. Kazakos
Secretary General, ICS
WRITTEN BY
Arsenio Dominguez Secretary-General, International Maritime Organization
If a decision is a twoway door, we’re happy to walk through it, experiment, and if we get things wrong, we can just walk back through the door again.
Images providedbyAmazonFreight
Today’s ‘unprecedented’ global shipping challenges are testing retailers
Retailers must use different tools and strategies to deal with unprecedented pressures on global shipping, according to Emma Clarke, Senior Director of Product Management at Metapack.
How is international volatility affecting customers and the ecommerce/shipping market?
I’ve worked in the industry for around 16 years and have never seen it under so much strain. Retailers have to contend with rising tariffs, geopolitical events, currency fluctuations, new trade barriers, and more recently, the removal of the $800 de minimis threshold in the US.
All of this has led to an increase in cost and complexity, which erodes their margins. It can also undermine the customer promise. Retailers are trying to find cheaper delivery solutions to cope with increased expense — yet customers still expect fast, affordable, and transparent delivery, whether cross-border or domestic. This puts a lot of pressure on the final mile.
What tools or strategies are retailers using to maintain a positive customer experience and profitability?
Companies are increasingly relying on technology to balance costs and customer expectations. Customer transparency is more important than ever, and Metapack’s software puts this into practice. At the checkout stage of a purchase, customers understand duties, taxes and delivery costs upfront to avoid surprise fees at the doorstep.
Real-time tracking data, chatbots and AI agents are also essential for managing the customer experience — something we are increasingly supporting with our range of tracking solutions. Plus, retailers are using multi-carrier strategies and consolidation services. We recently launched a consolidated clearance solution to help reduce costs on international shipments, speed up customs clearance and ensure a better delivery experience.
What are the biggest challenges when it comes to market expansion? How can shippers overcome them?
Expansion is still a huge growth opportunity for shippers. With tariffs and removal of the de minimis threshold in the US, more of our retailers are focusing on growth in Europe, the Middle East and Southeast Asia, where there is strong demand and more predictable
trading conditions. Nevertheless, the big challenge they face is how to test their customer service propositions in these new markets.
It’s vital for any business to do its research properly because global shipping is not ‘one-size-fits-all’. So, know the market, know the customer, and understand what your competitors or equivalent brands are doing in that market.
It’s imperative to understand what you need for success and craft everything around that. This ensures you can onboard the bestfit carriers quickly and enable the best system for in-country or crossborder warehousing and delivery. For instance, many companies start by using an in-country partner or other third-party solutions provider from our global library — rather than building their own warehousing — to test the expansion waters.
With global shippers facing additional pressures this year, what strategies are they implementing to maintain peak season performance?
It’s a real challenge. For example, over cyber weekend, many of our customers see a 15%–20% volume increase. To deal with massive seasonal spikes, they’re increasing investment in warehouse automation, and they’re using innovations such as AI to enable real-time visibility for informed decision-making. They’re also investing in software like ours to optimise their routing and carrier selection decisions.
What major trends do you see shaping global shipping, and how can delivery tech adapt to set businesses up for success?
Technology, automation and a demand for data will continue to be major trends. AI, machine learning and the Internet of Things (IoT) are becoming standard across logistics to enable predictive analytics. AI is definitely here to stay, whether it’s AI robots in warehouses, AI chatbots answering customer queries or AI tools that give decision-makers better data more quickly. Businesses that deploy AI effectively and appropriately will better adapt to solving problems as ecommerce continues to grow.
INTERVIEW WITH Emma Clarke
Senior Director of Product Management, Metapack
WRITTEN BY Tony Greenway