Accelerating ferry fleet renewal through green financing – the case of the Greek ferry network

Regulatory bodies have set ambitious goals regarding the decarbonization of maritime transport. The shipping industry, however, continues to face the dual challenge of sustaining profitability while renewing its fleet with new “greener” vessels. Despite the well-defined policy frameworks, there is no clear pathway toward financially viable fleet renewal. This paper develops and applies a green financing model designed to identify sustainable and resilient financing schemes that can accelerate the transition toward low-emission ferry operations. The model is empirically tested on the Greek Ferry Network, focusing on one of its largest Ro-Pax operators. Through a detailed financial analysis incorporating revenue and cost projections under alternative interest rate and subsidy scenarios, the study evaluates the economic feasibility of fleet renewal investments. Results show that targeted subsidies and favorable financing structures significantly enhance financial performance during the loan repayment period, enabling earlier compliance with decarbonization mandates without unduly increasing passenger fares. Beyond its empirical application, the proposed model serves as a policy support tool, offering a transferable framework for sustainable fleet-renewal strategies across shipping segments. The paper concludes with a set of targeted policy recommendations to align environmental objectives with financial and social sustainability.