Several prominent players in the shipping industry, such as Hapag-Lloyd AG and Louis Dreyfus Co., have raised concerns over the potential adoption of crop-based biofuels by maritime fleets. As reported by Bloomberg, these companies have urged the International Maritime Organization (IMO) to implement legally-binding safeguards to prevent a shift from fossil fuels to what they describe as unsustainable biofuels.

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The shipping industry, responsible for transporting over four-fifths of global trade, currently relies heavily on traditional fuels. The call for scrutiny comes as delegates meet in London to discuss new regulatory strategies to cut greenhouse gas emissions. Companies argue that when factors like deforestation and land use changes are considered, crop-based biofuels such as those derived from palm oil can be more damaging to the environment than conventional fuels.

According to IndexBox data, Europe is actively engaged in the trade of biodiesel, a type of biofuel. In 2024, the Netherlands led the export market with a value of USD 5 billion, followed by Belgium (USD 3.7 billion), Germany (USD 3.4 billion), Spain (USD 2.3 billion), and Italy (USD 627.4 million). The same year, the Netherlands was also the top importer of biodiesel, recording import values at USD 5.1 billion, with Belgium and Germany not far behind at USD 3.6 billion and USD 1.9 billion, respectively.

With the backdrop of Europe’s significant role in the biofuel market, the debate around biofuel adoption is underscored by the potential environmental impact aligned with these statistics. As the IMO works towards a zero-carbon emission target for 2050, it faces pressure to carefully evaluate the sources of energy that will drive the future of shipping.

Source: IndexBox Market Intelligence Platform