Shipping at risk in the Strait of Hormuz

The current crisis is costing shipping millions per day, highlighting why we must accelerate the sector’s decarbonisation.

The Hormuz Strait crisis is costing the shipping industry £295 million a day, demonstrating the industry's vulnerability to oil and gas price volatility.

Green measures would reduce the shipping industry’s exposure to fuel price shocks in future.

T&E makes the following recommendations for UK policymakers to accelerate the transition towards a more sustainable and resilient maritime industry:

• Strengthen the UK Emissions Trading Scheme (ETS) to ensure both domestic and international maritime emissions are covered. A UK ETS that covers the UK’s fair share of emissions has the potential to generate significant revenues, which could be used to support emissions reduction in the shipping sector.

• Introduce a GHG Intensity Standard and mandate the uptake of green hydrogen-based fuels (e-fuels) for shipping. To drive electrification, fuel switching, and the rollout of efficiency measures for the shipping sector.

• Make all reasonable efforts to reduce dependence on fossil fuels through electrification and efficiency measures, which offer immediate cost savings and long-term protection against geopolitical shocks.