The Kühne Climate Center, under the series "Transport and Logistics for the Low-Carbon Society of 2050" and the UCL Energy Institute have published a first-of-its-kind analysis on "Fossil fuel carrying ships and the risk of stranded assets in the transition to a low-carbon economy". 

The transition towards a low-carbon society requires a steep decline in the consumption of fossil fuels; it will also lead to a decline in trade and transport of these commodities. Today, over a third of the global shipping fleet carries fossil fuels as a cargo. Even if no further ships are ordered as of 2024, a large part of the fleet is at risk of being stranded along a trajectory to 1.5°C in 2050. Shipowners and financiers can reduce their risk by foregoing further investments in shipping segments with uncertain future transport demand. And they can consider rechannelling funds to assets and activities that are compatible with and needed in a low-carbon society.

Do you want to find out more about this topic? Please find the summary as well as the full report here: Workstream I – THINK | Kühne Climate Center

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About the series:

The climate crisis requires and drives a rapid transformation of our society: reducing emissions to net zero and adapting to the impacts of a new climate reality are the major tasks of our times, across all countries and sectors of the economy. By 2050, we must – and can – build a more equitable and prosperous low-carbon society. The Kühne Climate Center’s work on ‘Transport and Logistics for the Low-Carbon Society of 2050’ strives to lay out the structural changes in the economy to which transport and logistics will need to adapt, the capacities the sector has to develop, and the opportunities it can seize to enable sustainable development at the global and local scale.