In an exclusive interview to SAFETY4SEA, Jesse Fahnestock, Director of Decarbonisation at the Global Maritime Forum (GMF), emphasizes that the green transition comes with significant challenges. He stresses the importance of ensuring that lower-income countries are not left behind in the shift to cleaner energy.
Despite these hurdles, the move toward maritime decarbonisation is already in progress. This transition is prompting maritime stakeholders to reshape their ESG strategies and address urgent issues from both business and sustainability perspectives. As a result, the focus extends beyond environmental goals to include human-centric priorities such as biodiversity, crew welfare, and broader social responsibility. Within this context, numerous initiatives are supporting stakeholders in adopting a comprehensive, well-to-wake approach—one that considers the entire life cycle of shipping operations.
SAFETY4SEA: What are the biggest challenges in the energy transition?
Jesse Fahnestock: The transition to a low-carbon maritime industry is not without its challenges. One major hurdle is the cost and availability of e-fuels. While alternative fuels such as green ammonia, hydrogen, and methanol hold great promise, the production and supply chain for these fuels still needs to be developed. Beyond availability, economic viability remains a concern. E-fuels are still far more expensive than conventional fuels, posing financial challenges for shipowners and operators looking to make the switch. The lack of globally aligned policies further complicates the transition. While the International Maritime Organization’s 2023 revised greenhouse gas strategy has set ambitious decarbonisation targets, regulatory uncertainty persists, making it difficult for businesses to commit to long-term investments with confidence. At the same time, infrastructure development must keep pace with these changes. Ports and supply chains require substantial upgrades to safely and efficiently handle new fuel types. Without these critical improvements, the adoption of low-carbon fuels will remain slow, hindering the industry’s progress toward a more sustainable future.
S4S: Why is a just transition essential for ensuring global equity and inclusive growth in the shift toward cleaner energy?
J.F.: A just transition is also crucial to ensuring that lower-income countries are not left behind in the shift to cleaner energy. Many developing nations rely heavily on shipping, both for trade and as a source of employment. However, without proper investment and support, they risk being excluded from the benefits of decarbonisation. Addressing these challenges will require coordinated efforts across the industry, along with strategic investment and clear regulatory direction, to ensure an equitable and successful transition.
S4S: At this moment, what are your top concerns?
J.F.: While geopolitical tensions pose challenges for global trade, the shift towards maritime decarbonisation is already underway. As the body responsible for creating a comprehensive regulatory framework for international shipping, the IMO sets the policies and regulations that provide the clear direction necessary for the maritime industry to navigate these transitions. Its decisions will be instrumental in shaping the pathway to zero-emission shipping and ensuring long-term certainty for investment in green solutions.However, challenges remain. A lack of clear financial incentives and enforceable regulations could slow progress.
S4S: What global policy changes would most effectively accelerate the transition to zero-emission shipping?
J.F.: Implementing a global carbon levy could help level the playing field and make low-carbon fuels more competitive, while also generating funds needed to bring e-fuels to maturity and support the most impacted countries. Without an economic measure that generates these funds, the industry will struggle to deliver on the IMO’s strategy.
S4S: Do you believe the maritime industry is on the right path? What key ESG and sustainability trends do you see shaping its future?
J.F.: While geopolitical tensions present challenges for global trade, the maritime industry is already embracing the shift towards decarbonisation. As the body responsible for creating a comprehensive regulatory framework for international shipping, the IMO is providing the clear direction necessary for the industry to navigate these transitions. With its goal of achieving net-zero emissions from international shipping by or around 2050, decarbonisation remains high on the agenda. However, this transition isn’t just about technology; it also involves attracting and retaining a skilled workforce to support the shift and ensuring a just transition for those affected. The need for a skilled workforce is critical to implementing new technologies and maintaining operational excellence as the industry moves towards sustainable practices. Additionally, there is growing pressure from stakeholders for increased transparency, especially in the wake of regulatory frameworks like the EU’s CSRD. These frameworks are reshaping Environmental, Social, and Governance (ESG) strategies, with a stronger focus on double materiality assessments. This approach helps companies identify the most urgent topics from both a business and sustainability perspective—issues such as biodiversity, crew welfare, and broader social responsibility—ensuring that environmental goals align with human-centric outcomes.
S4S: Do you have any new developments or projects on the pipeline that you would like to share with the industry?
J.F.: Our ongoing work in Green Corridors and transparency initiatives comes to mind. While I can’t speak on behalf of our Human Sustainability Programme, it’s worth mentioning that they launched a significant report this week aimed at setting new standards for seafarer well-being. The Sustainable Crewing Guidelines , developed by the Global Maritime Forum in collaboration with 12 major shipping companies, outline nine key principles that define “what good looks like” onboard vessels. These guidelines focus on improving conditions by addressing issues like abuse and harassment, work-life balance, and crew welfare, ensuring that maritime careers become safer, more inclusive, and more attractive to future talent. In line with these efforts, the Poseidon Principles for Financial Institutions established a Future Principles Committee, which is exploring opportunities to integrate broader environmental and social sustainability objectives into the framework. This includes areas like ship recycling, biodiversity, and crew welfare. The committee’s work aligns with the overarching goal of fostering transparency, simplifying data collection for clients, and ensuring reporting follows recognised benchmarks.
S4S: How do other GMF initiatives, such as the Poseidon Principles and the Sea Cargo Charter, contribute to aligning the maritime sector with global net-zero targets?
J.F.: The Poseidon Principles for Marine Insurance has also introduced a new, efficient way to collect climate data. Previously, signatories relied on clients submitting their data to the IMO Data Collection System. Now, through modelled data, signatories can gather climate alignment scores for their entire hull and machinery portfolio in a fraction of the time—making it faster and more streamlined. Furthermore, both the Sea Cargo Charter and the Poseidon Principles initiatives now include decarbonisation trajectories aligned with the IMO’s ambition to reach net-zero emissions by 2050. These initiatives take a comprehensive, well-to-wake approach, factoring in the full life cycle of shipping operations.
The views presented are only those of the authors and do not necessarily reflect those of SAFETY4SEA and are for information sharing and discussion purposes only.
