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Global shipping is making progress in adopting cleaner fuels, but the pace is insufficient to meet environmental targets, according to Lloyd's Register (LR). In 2025, 590 vessels capable of alternative fuels were ordered, increasing the total to 1,942, primarily for LNG.

Alternative-fuel vessels represent only 2.1% of the global fleet, far below the International Maritime Organisation's (IMO) emissions targets. Existing fleet retrofits, especially LNG, are gaining momentum due to tightening regulations.

However, shipyard capacity is limited to 465 retrofits annually, while needs exceed 1,000. A financing gap exceeding a trillion dollars hampers the transition, compounded by a lack of trained personnel.

Cyprus faces significant challenges as a maritime hub, emphasizing the need for global alignment and effective solutions to address decarbonisation. The shipping sector is currently only 24-30% aligned with its 2030 decarbonisation pathway, necessitating urgent investment and infrastructure scaling.