PolicyBrief
S. 2261
119th CongressJul 10th 2025
Clean Shipping Act of 2025
IN COMMITTEE

The Clean Shipping Act of 2025 establishes federal standards to progressively reduce greenhouse gas emissions from large vessels using marine fuel and mandates zero-emission requirements for ships docked or anchored in U.S. coastal waters by 2035.

Alejandro "Alex" Padilla
D

Alejandro "Alex" Padilla

Senator

CA

LEGISLATION

New Shipping Act Mandates 100% Clean Fuel by 2050 and Zero Port Emissions by 2035

The newly proposed Clean Shipping Act of 2025 is setting up a major overhaul for the massive ships that bring us everything from sneakers to electronics. This bill amends the Clean Air Act to create a federal standard for reducing greenhouse gas emissions from large commercial vessels (400 gross tonnage or larger) traveling to and from U.S. ports. The core mechanism is a strict, escalating requirement for ships to use cleaner fuel, starting with a 30% reduction in fuel carbon intensity by 2030 (compared to the 2027 baseline) and hitting a 100% reduction—meaning net zero emissions—by 2050.

The Long Haul: Making Shipping Fuel Cleaner

Think of this as a marathon with increasingly difficult checkpoints. The bill defines carbon intensity as the total lifecycle pollution released per unit of energy in the fuel, measured in CO2 equivalent. Starting in 2030, ships must use fuel that is 30% less carbon-intensive than the 2027 average. That target jumps to 58% by 2034, 83% by 2040, and finally, 100% by 2050 (SEC. 2). For the average person, this means the massive global logistics chain that keeps our stores stocked will have to completely reinvent how it powers its fleet. This is a huge push toward alternative fuels like green hydrogen or ammonia, and it will require massive capital investment from shipping companies worldwide.

Crucially, the EPA Administrator is given an escape clause: if meeting any of those steep reduction targets isn't deemed technologically or economically feasible, the Administrator can set a lower standard that achieves the maximum possible reduction (SEC. 2). This flexibility is a double-edged sword. On one hand, it’s realistic—you can’t mandate a technology that doesn’t exist yet. On the other hand, it introduces a point of regulatory discretion where industry pressure could potentially slow down the mandated transition if the economic feasibility argument is prioritized over the environmental goal.

Clearing the Air at the Docks

Beyond the long-term fuel standard, the bill also tackles the immediate problem of port pollution. It requires all large vessels anchored or docked in U.S. coastal waters to achieve zero emissions by January 1, 2035 (SEC. 3). When a massive container ship sits idling near a busy port city, it acts like a floating, unregulated power plant, spewing out pollutants that directly affect local air quality. This zero-emission mandate means ships will likely need to use shore power (plugging into the grid) or employ battery power while at port. This is a clear win for people living near major shipping hubs—think Los Angeles, New York, or Houston—who currently breathe air degraded by ship emissions.

Like the fuel standard, the zero-emission requirement also contains a feasibility check. If the 2035 zero-emission goal is found to be technologically or economically infeasible, the EPA must set the maximum reduction that is possible (SEC. 3). The clock is ticking on this one, as the EPA must finalize the rules by 2029.

The Cost of Cleaner Shipping

While the environmental benefits—especially the improved air quality near ports and the massive reduction in global greenhouse gases—are clear, these changes won’t come free. Switching to entirely new fuels, installing new engine technology, and retrofitting ships to use shore power requires massive investment from shipping companies. That cost is highly likely to be passed down the supply chain. For the everyday consumer, this could mean slightly higher prices on imported goods as the cost of shipping increases. This is the trade-off: a cleaner environment and reduced climate impact, but potentially higher costs for the final product on the shelf. The bill also requires mandatory annual reporting of fuel use and emissions, which the EPA must publish publicly online (SEC. 2). This transparency ensures that everyone—from environmental groups to the average citizen—can track exactly how well the industry is meeting these new, ambitious standards.