This material was prepared by Norton Rose Fulbright and reflects the views of the firm. It does not represent the positions of the Department for Transport or Maritime London.

Key takeaways from LISW

As part of London International Shipping Week, Norton Rose Fulbright hosted a seminar at its London office, delivered in partnership with the Department for Transport and Maritime London, exploring “Investment in UK Maritime: Supporting the Zero-Carbon Future.” With a range of panellists and keynote speakers, the session examined how the UK shipping industry can adapt, attract investment, and remain globally competitive while navigating the path to net zero.

The future of shipping in a zero-carbon landscape

Three core challenges were identified in connection with the industry’s ambition to reach net zero:

1. Geopolitical risk
2. Access to green financing
3. Technological uncertainty

Shipowners are responding with operational efficiencies, dual-fuel vessels and retrofitting strategies. Alternative fuels such as ammonia and methanol, alongside onboard carbon capture, were seen as promising but will require scale, availability and affordability before they can anchor the transition. Without greater certainty, a “wait-and-see” approach risks leaving the UK with an ageing fleet and slowing progress toward net zero.

Technology as a driver

Technology emerged as both a challenge and an opportunity. Digitisation is already squeezing more efficiency from every voyage, and the UK has the potential to lead in autonomous shipping. However, regulatory clarity and testing facilities in UK waters are lacking, slowing development.

The discussion emphasised how the sector must move beyond seeing technology as a cost centre and instead recognise its role in long-term competitiveness. UK businesses are already developing innovative products that enhance efficiency and sustainability, and leveraging these strengths will be vital.

Encouragingly, the announcement of an additional £448m for the Department for Transport’s UK Shipping Office for Reducing Emissions research and development programme (UK SHORE) was welcomed, signalling strong government backing for innovation that advances the scaling and adoption of sustainable technologies.

Moreover, in terms of thought leadership, UK universities have been producing pioneering and impactful research in relation to net-zero shipping. For instance, the UK National Clean Maritime Research Hub is a consortium of 14 UK universities, funded by the Engineering and Physical Sciences Research Council and the UK Government’s Department for Transport. The Hub’s research also focuses on the potential economic and social benefits of transitioning to a clean maritime future. 

Financing the transition

Decarbonising shipping is capital intensive, with estimates suggesting the transition could cost over US$1 trillion globally. Financing conditions are challenging, but capital is available for credible projects with transparent emissions trajectories and enforceable KPIs.

The UK Government’s Shipbuilding Credit Guarantee Scheme, launched in July 2023, was noted as a positive step, but comparisons with other jurisdictions, which can offer higher credit guarantee backing and in some cases tax leasing as a further support mechanism, highlighted the need for more ambitious measures. It is hoped that a review of the Shipbuilding Credit Guarantee Scheme will help international competitiveness. Green bonds and sustainability-linked loans and leasing structures remain viable, provided owners can show robust transition plans, emissions analysis and fuel procurement strategies.

Banks underlined that sustainability is now assessed as closely as credit risk. Some lenders are withdrawing from projects tied to coal-carrying vessels, reflecting evolving risk appetites. 

UK shipbuilding and competitiveness

The discussion on UK shipbuilding highlighted how the UK continues to demonstrate excellence in naval shipbuilding, yet commercial shipbuilding remains challenged by global cost competition. Shipowners indicated they would welcome the ability to build domestically, provided financing structures and credit support made it viable.

There are near-term opportunities to showcase UK yard capability in conversions, retrofits and low-carbon vessels. Unlocking these opportunities will depend on joined-up government support and more agile regulation.

Skills for the next generation

Attracting the next generation of talent, particularly with digital and green technology skills, was highlighted as critical to the future of the UK maritime sector. As shipping pivots towards greater autonomy, alternative fuels and digitisation, the industry must present itself as an innovative, forward-looking sector with real opportunities to contribute to the zero-carbon future.

Collaboration at the core

The seminar underscored the importance of collaboration: across borders, across sectors, and between government and industry. Shipping is adaptive and resilient, but the challenge of decarbonisation requires stronger partnerships and pragmatic policymaking that keeps pace with technological change.

Insurers, financiers, policymakers and shipowners must align to create certainty and investment appeal. Without this, opportunities risk slipping abroad—particularly at a moment when the UK, post-Brexit, has greater scope to shape its own regulatory and investment frameworks.

Looking ahead

The pathway to zero-carbon shipping will be multi-fuel, multi-technology and multi-stakeholder. The UK has the talent, technology, financial ecosystem and industrial base to lead—but only if innovation is coupled with bankable structures and targeted public and policy support. For owners, charterers, yards, financiers and investors, the near-term priorities are clear: lock in partnerships, focus on efficiency now, structure credible fuel strategies, and leverage the UK’s strengths to deliver investable projects at scale.