FOREWORDThe decarbonization of shipping stands as one ofthe greatest challenges of our time. As a truly globalindustry, we face a monumental task that many deeminsurmountable.Achieving net-zero emissions requires comprehensivetransformation, encompassing access to supply of carbon-neutral fuel, a wide array of technological advancements,regulatory changes, and innovative practices.Like a complex jigsaw puzzle, thousands of pieces arescattered before us, and we are just beginning to find theedges and create the framework.Ultimately, full decarbonization is expected around 2050and this will not be achieved without the large-scaletransition to carbon-neutral fuels.This is a colossal challenge which has, so far, been metby supply and demand issues. The additional capital andoperational costs pose a practical challenge to ownersadopting these new fuels. Therefore, the industry needs tofind the way to pass the cost along the value chain towardsthe end user.Supply of carbon-neutral fuels is increasing but remainsvery limited. Increasing this to the levels that are neededrequires a wide range of collaborative initiatives betweenMaritime decarbonization is a complex puzzle but energy efficiency can help tobuild the right framework for success the maritime industry and key actors like fuel suppliers,financial institutions, and governments. The technicaltransition is also underway, but over 90% of the globalfleet is still running on conventional fuels, and ship-owners require more incentive and certainty to makethese investments.To facilitate and expedite the fuel transition, all possiblemeasures must be explored. In addition to the short-termemissions reductions that energy efficiency can deliver bylowering fuel consumption, energy efficiency also has avital role to play in accelerating the adoption ofcarbon-neutral fuels.In the latest version of DNV’s Maritime Forecast to 2050report, it was estimated that energy efficiency can deliverfuel savings and emissions reductions of up to 16%. This isa significant number, equivalent to decarbonizing 55,000of the smallest or 2,500 of the largest ships in the globalfleet. If reached, it can contribute the bulk of emissionsreductions necessary to reach the first of the IMO’s decar-bonization goals, namely a 20% reduction by 2030, easingthe urgency of making the transition to alternative fuels,and providing vital time for these markets to develop.Energy efficiency also makes sound business sensefor shipowners. Future fuels will undoubtedly be moreexpensive than today’s conventional versions, so reduced consumption will have a significant effect on the balancesheet. Additionally, regulations like EU ETS and FuelEUMaritime are now also placing a premium on conventionalfuels, with similar legislation likely to be adopted by theIMO on a global scale in the near future.This means that every percentage of fuel saved – conven-tional or alternative – now translates to significant savingsfor shipowners, underlining the necessity to includeenergy efficiency in any future business strategy.As a starting point, we at DNV recognize that the effect ofeach energy-efficiency measure varies depending upona range of factors such as vessel type, size, age, location,and route. Every shipowner should think carefully aboutwhat the best solutions are for their fleet and, just asimportantly, how this will work best on their balance sheet.As shown in the report, the uptake of these measures isstill low. Our research shows that a major factor behindthis is the lack of trust in the efficacy of many energy-efficiency measures and whether they actually presenta strong business case to shipowners. Much work hasalready been done but it is important that more data iscollected and more verification processes carried outso that the true value of each energy-efficiency measureis demonstrated and shipowners can make crucialinvestment decisions with confidence. We are still putting the pieces together on the maritimedecarbonization puzzle. There are many choices availablebut there is no option to delay. Other industries arefollowing a similar path, and shipping needs to act fastso that it doesn’t get left behind.Maritime decarbonization is the great challenge ofour time and a vast ocean lies before us full of risk anduncertainty. The task is difficult, but shipping has alwaysattracted pioneers and adventurers willing to combinebravery of spirit with ingenuity and innovation.Let’s embrace the challenge and take the next steps boldly.Knut Ørbeck-NilssenCEOMaritimeDNV ForewordContents1.Introduction2.Why is energy efficiency important?3.Energy efficiency in practice3.1 Introduction3.2 Uptake of technologies3.3 Combining measures4.Drivers and barriers4.1 Data and verifying the effect of technology4.2Fuel and GHG emissions cost impact on energy-efficiency uptake4.3 FuelEU pooling and biofuel example case4.4 Decarbonization in a cyber-secure way5.Fleet planningCONTENTS 6.23 Optimized turbocharger for lower engine loa