Decarbonising Global Trade: Green Shipping, Innovation, and the Middle East’s Role

By: Nadine Guerfi, KAP Business Development Executive

Contributors: Gavin Allwright - Secretary General of the International Windship Association | Yusuf Chadun - Investor Relations Manager at Catapult Connected Places |
George Thompson - CEO of GT Wings

A Global Question with Regional Implications

Green shipping is rising rapidly on the global trade agenda, raising critical questions: about its role in decarbonisation, the Middle East’s position, and the business case.

To explore these issues, our KAP network convened voices from across the ecosystem - startup innovation, investment, and regulatory policy - in a discussion featuring George Thompson, CEO of GT Wings; Gavin Allwright, Secretary General of the International Windship Association; and Yusuf Chaddun, Investor Relations Manager at the Connected Places Catapult. Together, they unpacked the maritime sector’s role in global net-zero ambitions, highlighted the Middle East’s strategic importance, and assessed the opportunities shaping shipping’s transformation toward full decarbonisation by 2050.

Source: cp.catapult.org.uk

What is Green Shipping? And Why Does It Matter?

Green shipping encompasses technologies and practices designed to reduce the maritime industry’s environmental footprint. As the backbone of global trade, carrying 80-90% of goods worldwide noted Gavin Allwright, shipping is essential to the global economy. This means its transition to net zero will ripple across every sector.

Currently, shipping emits more than a billion tonnes of greenhouse gas emissions yearly, making up more than 2% of global emissions. In response, the International Maritime Organization (IMO) has set ambitious targets, including a reduction in greenhouse gas emissions by at least 50% by 2050 compared to 2008 levels.

Experts stressed that this transition must be both environmentally and economically sustainable. They argued that green shipping cannot rest solely on environmental ideals, it must also make financial sense to ensure the industry’s long-term viability. While the added cost of green transport is relatively small for most consumer goods, it can be substantial for commodities such as food and energy. Experts emphasised that shipping is central to the real economy, keeping trade affordable and supporting growing populations worldwide. Therefore, it is essential to understand the business case for decarbonised trade, which shall be discussed later in the blog.

”We must be close approaching the day where this becomes the new normal, where we don't call it ‘green shipping anymore’. Rather, we call fossil fuel shipping ‘dirty, dangerous, destructive shipping’ and green sustainable shipping just becomes shipping.” - Gavin Allwright

The Middle East’s Strategic Role

“In terms of investment, the Middle East is an enabler and accelerator.” - Yusuf Chaddun

Strategically positioned at the crossroads of Europe, Asia and Africa through the Suez Canal, and is home to 4 out of 5 of the world’s best-performing ports, the region is rapidly becoming a central hub in global shipping. To align with global demands, the Middle East is investing in a more sustainable future, with governments and logistics companies investing in emissions reduction, cleaner fuels, and eco-friendly operations. 

Middle Eastern capital is not only enabling but accelerating progress, with funding directed toward R&D, infrastructure, fleet financing, and risk-sharing mechanisms. Experts pointed to three priorities: retrofitting existing tanker fleets, lowering transition costs for food imports, and scaling investment in container ports. This can be done through risk-sharing capital, public-private partnerships, blended finance, and green shipping funds to de-risk early adoption ship owners. Indeed, large-scale innovations, such as wind propulsion will only advance through sustained investment.

“With varying commitments globally, the Middle East has the potential to lead through its strategic location and availability of investments. In terms of the Gulf, we are looking at using fossil fuel-derived investments, but relocated and reinvested into future sustainable energies, including green shipping.” - Gavin Allwright

Innovation and Investment

Innovation is a critical driver of progress, with modern wind propulsion technologies now far more sophisticated than their traditional counterparts. By incorporating advanced control systems and machine learning, these solutions have the potential to deliver substantial efficiency gains - though only with sustained investment in research, testing, and large-scale deployment.

At the same time, scaling green shipping faces considerable hurdles. Immature fuel technologies, safety concerns, retrofitting challenges, gaps in standardisation, insufficient infrastructure, high costs, regulatory uncertainty, and widespread industry risk aversion all stand in the way. Overcoming these barriers will require coordinated action across the sector.

Investment across complementary areas remains vital. Without it, momentum could stall. Making strategic use of the remaining carbon budget means prioritising immediate “quick wins” such as energy efficiency improvements and voyage optimisation, which can deliver rapid reductions in energy demand.

Source: GT Wings

Geopolitical Disparities and Regulatory Challenges

Disparities in green shipping adoption are shaping the global decarbonisation trajectory. Due to the interconnected nature of international trade, non-adoption of green shipping by certain countries or regions constitutes a major setback for the global reduction of emissions. For instance, strong opposition from the U.S. administration to the IMO net-zero framework illustrates the challenge of aligning global policies. Yet, regional initiatives, particularly from the EU, can spur broader ambition by demonstrating faster progress when global frameworks lag. Partial adoption across jurisdictions - especially for ships that traverse multiple regions - hinders the transition and underscores the need for consistent regulations to reduce complexity for shipowners.

Achieving 5% zero-emission fuels by 2030 will be difficult from a supply perspective. However, a 20–30% energy reduction is attainable through measures such as voyage optimisation, energy efficiency, and wind propulsion. Experts also flagged bottlenecks like shipyard capacity constraints and a shortage of trained seafarers for new fuels. Although, “wind-ready” new builds and retrofits allow for future technology installation, giving shipowners flexibility. Modular and containerised systems would facilitate upgradable ships and easier adoption of emerging technologies.

The Business Case for Decarbonisation

“Companies that are decarbonising put themselves in a better position to win contracts and secure funding, thus escaping the escalating costs of non-compliance.” - Yusuf Chaddun 

Green shipping is less than an environmental add-on and more as a strategic investment: one that manages costs, secures market access, and strengthens competitiveness. Experts argue that decarbonisation makes strong business sense across all sectors. Decarbonising companies can access more favourable financing, such as green loans, sustainability-linked bonds, and ESG-focused capital that often requires emission targets. 

Fuel cost savings - for example through zero-cost energy sources such as wind propulsion technology, combined with the rising cost of regulatory non-compliance (e.g., Fuel EU Maritime and EU ETS), make inaction risky noted George Thompson. Ship charterers increasingly demand low-carbon vessels to meet ESG goals and reduce costs, creating a powerful incentive for shipowners to invest in green technologies. Lower-emission vessels are positioned for cost advantages as carbon pricing expands, and adherence to new standards can extend the asset life of retrofitted or new ships. Through economies of scale, installation gets quicker with time, leading to 10% reduction in cost for every doubling of installations going forward.

Ultimately, those who do not join the race for net zero in the industry will be left behind.

Future Outlook and Calls to Action

Source: imo.org

To conclude our discussion, each expert shared with us one future outlook they would like to see in the field for a smooth transition to green shipping:

• Gavin Allwright - For the industry to adopt a total cost of ownership approach, considering the entire lifecycle and impact of investments to ensure an industry fit for purpose by 2050, emphasising that ships designed today will operate in a net-zero framework.

• Yusuf Chadun - For more pilot projects to further drive developments, citing GT Wings' airwing technology as an exciting example. 

• George Thompson - For continued and improved momentum in the market, encouraging more companies and individuals to push the wheel faster now that the IMO and industry are moving in the right direction.

Conclusion

The discussion underscored a clear message: the decarbonisation of shipping is not an environmental imperative but also a strategic and economic necessity. 

With its unique geography, capital strength, and expanding logistics role, the Middle East is positioned to play a pivotal role in shaping the future of global trade. But, what will it take for it to fulfill its potential? 

About the companies

GT Wings: Pioneering sustainable shipping with their AirWing™ technology, GT Wings offers the world's first commercial jet sail. This award-winning wind propulsion system significantly cuts fuel consumption, emissions, and operational costs, demonstrating their commitment to clean shipping.

Catapult Connected Places: As the UK's innovation accelerator for transport and urban development, Catapult is focused on decarbonising the sector and creating integrated transport systems. They bridge the gap between innovative ideas and market realisation, contributing to the UK government's net-zero aviation and maritime goals.

IWSA: The International Windship Association (IWSA) is a global non-profit organisation dedicated to facilitating the reintroduction of wind propulsion in commercial shipping. Representing over 100 companies and supporting organisations, IWSA actively promotes wind-assist solutions to reduce emissions and improve the efficiency of the maritime industry.