UK Government and Industry Pledge Over $1.4B to Shipping Decarbonization
Timed to the opening of the London International Shipping Week 2025, the UK government announced plans for another massive investment into the decarbonization of shipping that will also include further commitments from the private sector. The government is adding approximately $610 million to its UK Shipping Office for Reducing Emissions (UK Shore) program, while reporting that private industry will contribute another $952 million to programs to aid shore communities and spur decarbonization.
UK Shore was launched in 2022 and has already allocated $326 million to more than 200 projects. It has further leveraged an additional approximately $150 million direct private investment. They point to efforts developing electric and efficiency solutions for various vessel types, ranging from ferries to cargo and offshore wind vessels. It has also contributed to programs for hydrogen, ammonia, and methanol, and supports R&D and demonstrations of emerging technologies.
The conference kicked off with an opening ceremony at the London Stock Exchange with the UK Parliamentary Under Secretary for Local Transport, Simon Lightwood. He highlighted the critical role shipping plays in the UK economy and its contribution to technological progress.
A member of Parliament and the UK government’s recently appointed Parliamentary Under-Secretary of State for Transport, Keir Mather, wrote to Parliament informing them of the investment plan. He highlighted how it fits within the 2025 Department of Transport maritime decarbonization strategy and the goals to place the UK at the forefront. He said they intend the new funding for between 2026 and 2030 to accelerate technology for decarbonization and allow industry to plan for the next five years of clean maritime innovation.
During 2026, he said the government plans for the next round of the Zero Emissions Vessels and Infrastructure competition that funds efforts to build and conduct commercial trials of clean maritime solutions. They are also planning the seventh round of the Clean Maritime Demonstration Competition for demonstration projects by 2030. The new funding will also provide for two more rounds between 2027 and 2029 and fund the Clean Maritime Research Hub until at least 2028.
Mather traveled to the Cammell Laird yard near Liverpool to highlight $4.9 million of previous UK Shore funding for the installation of a zero-emission electric shore power system. The UK programs have also contributed to power across the South Coast of England and London, as well as the FastRig wingsail being developed in Scotland.
Among the private industry investments being announced is more than $400 million from Peel Ports for its Liverpool, Hunterston, and Great Yarmouth ports, while NatPower Marine reported $340 million for shore power. The Port of Tyne will invest more than $200 million in the North Side, creating opportunities in offshore wind and manufacturing.
London International Shipping Week continues all week and is designed to highlight advancements in the industry. The Transport Secretary and Maritime Minister will attend a series of events where they will champion UK shipping and highlight the potential for the industry.