A recent survey by Reed Smith reveals that transport professionals believe it will take over 15 years to achieve 100% sustainable fuels, with fossil LNG expected to serve as a transitional fuel for the next three to five years. The survey, involving up to 50 respondents, highlighted cost, sustainable energy, and inadequate infrastructure as major barriers to decarbonization.
Respondents expressed concerns about understanding and complying with new environmental regulations. Nearly half identified biofuel and green hydrogen as having the most potential among sustainable fuels, despite regulatory uncertainties.
The survey covered transportation specialists across various sectors, including maritime, aviation, logistics, manufacturing, utilities, and environmental services. Thor Maalouf, Reed Smith’s partner for commercial shipping, noted a preference for green biomass-derived fuels over ‘blue’ fuels due to clearer low-carbon footprints.
Transportation partner Nick Austin emphasized the significant impact of costs and regulatory restrictions on the adoption of sustainable fuels. He cited new costs such as the EU ETS and the IMO’s Carbon Intensity Indicator as burdensome for companies aiming to reduce emissions.
A lack of infrastructure was another major concern. Austin pointed out that substantial investments are needed to develop infrastructure for new fuels and criticized the perceived lack of commitment from global governments to support this energy transition.
