Navigating the Green Maritime Transition In The Caribbean

Diego Rodríguez Paez
Director of Logistics and Industry Practice
AMI

The Caribbean Shipping Association (CSA) panel held in Fort Lauderdale on May 19 brought together regional leaders, policymakers, and technical experts to assess the realities and opportunities of decarbonizing the maritime sector in the Caribbean and Latin America.

What Experts Say Caribbean Ports Must Do to Stay Secure

AI and cybersecurity tools can transform how Caribbean ports detect threats, prevent attacks, and build maritime resilience.

Read Now

Surge in Green Vessel Orders Signals Industry Shift 

The record-breaking number of vessels ordered globally in 2024: over 820 ships equipped with alternative fuel capabilities, including green methanol, ammonia, and hydrogen, represents more than 50% of all newbuild orders and signals an accelerated shift toward sustainable maritime operations. Projections suggest that by 2030, over 20% of the global fleet could be capable of operating on alternative fuels, up from just 2% today.

Shore Power Infrastructure: Ambition vs. Reality 

Despite new EU regulations mandating that 90% of the power demand of large vessels at berth be met by shore power by 2030, Caribbean ports have shown only limited progress. High electricity tariffs and the lack of harmonized standards are significant barriers to the adoption of these technologies. As of May 2025, only a few ports in the region have taken steps toward shore power infrastructure.

PortMiami has become a regional leader, offering shore power at five cruise berths—an initiative that significantly reduces emissions from docked vessels. Port Everglades is also in the process of integrating shore power capabilities as part of its infrastructure plan. In the Dutch Caribbean, ports in Aruba, Bonaire, and Curaçao are exploring the feasibility of shore power solutions, supported by discussions around investment and environmental compliance. However, most Caribbean ports still lack concrete plans, presenting both a challenge and an opportunity for first movers to lead the shift toward sustainable maritime logistics.

This infrastructure gap is not just a challenge—it presents a first mover advantage. Ports and investors that act quickly to establish green bunkering and shore power solutions could attract the new generation of green vessels and access international transition funding.

IMO Framework: Regulatory Anchors and Market Incentives 

The panel highlighted the importance of the IMO’s mid-term measures, which include a global fuel standard and a greenhouse gas (GHG) pricing mechanism. By 2030, all ships exceeding 5,000 tons must annually calculate and report their greenhouse gas (GHG) intensity. Vessels that exceed compliance targets may incur penalties or be required to purchase compliance credits.

The revenue from these penalties can fund green upgrades, with special provisions in place to support Small Island Developing States (SIDS). Notably, in 2025, MTCC Caribbean completed GHG inventories for three major ports in Trinidad and Tobago. These inventories provide critical data for future decarbonization strategies, enabling ports to identify key emission sources and prioritize mitigation measures. Additionally, MTCC Caribbean has conducted functional power supply readiness assessments to evaluate the capacity of ports to support shore power systems. These assessments consider existing electrical infrastructure, energy demand, and the potential for integrating renewable energy.

The Strategic Role of Latin American Energy Data 

Representatives from the Latin American Energy Organization (OLADE) emphasized that data is central to planning and executing the maritime energy transition. With 27 member states, including 10 from the Caribbean, OLADE is mapping energy usage, planning for decarbonization, and aligning national priorities with the demands of the maritime sector.

Energy security, affordability, resilience, and a reduction in fossil fuel dependence are core objectives. Planning to incorporate shipping demand into national energy models is key to ensuring a synchronized and sustainable transition, considering that some islands receive more tourist arrivals than their living population.

Infrastructure and Energy Policy Misalignments 

The disconnect between shipping decarbonization efforts and national energy policies is a recurring concern. Ports are often excluded from energy planning, limiting their ability to scale up shore power and green fuel solutions. The speakers emphasized the need for stronger interagency coordination and planning to ensure that energy demands from shipping are effectively incorporated into national strategies.

This lack of alignment has serious consequences. Many Caribbean ports are not on track to meet IMO requirements, due to high investment needs and a lack of external pressure or policy support. Without modernization, these ports risk being bypassed by compliant vessels, leading to a potential decline in connectivity and trade, one of the most pressing concerns today.

Case Studies from the South Atlantic 

Insights from South America added practical context of what can be done in the Caribbean: 

• Offshore LNG Support Fleets: Brazil and Argentina are exploring the use of bio-LNG for offshore support vessels, offering both environmental and cost benefits. Guyana and Suriname can explore these alternatives. 

• Dredging Operations: Rio de la Plata’s massive dredging operations may incorporate green fuels to cut costs and emissions. 

• Container Routes: A 700-TEU LNG-powered container ship is being developed to replace truck routes from Buenos Aires to Tierra del Fuego, reducing emissions and improving safety. 

• Antarctic Tourism Gateway: Ushuaia, Argentina’s gateway port to Antarctica, is facing power shortages due to rising cruise traffic. A floating LNG-based power plant is under consideration to support shore power demands. 

The panel emphasized that bio-LNG, produced from biomass and urban/cruise ship waste, can offer a net-zero and cost-competitive fuel option for the Caribbean. With ample biomass and waste streams across the region, local production could be initiated rapidly. This represents a tangible, near-term solution for decarbonization, considering that Caribbean ports welcomed in 2024 between 34.2 million and 35.8 million cruise passenger visits, marking a 10% to 15% increase over 2023.

Keep up to date with our Logistics insights

Diego Rodríguez Paez Senior Director of the Logistics Practice

Diego Rodríguez is the Director of the logistics and industrial practice at Americas Market Intelligence, handling dozens of market analysis and competitive intelligence studies throughout Latin America. He has also served as a consultant to more than 20 multinational companies.

See Full Bio