Although efficient ships save shipowners money on fuel, they do not attract green premiums or preferential contracts, research suggests The market is failing to adequately reward shipowners that invest in the most energy efficient vessels, according to new research published today which calls on the industry to better reward investment in green shipping technology. The research, conducted by environmental NGO Carbon War Rooms in collaboration with University College London's Energy Institute, found the while efficient ships deliver substantial fuel savings, shipowners are often not rewarded for their investment with premiums or preferential hiring. In essence, efficient ships are currently only rewarding the fuel payer, rather than those who invest in and own the vessels as well. For example, the market does not offer the most efficient ships to charterers at a premium price, despite the fact that a ship with B-rated efficiency is often up to $1.5m cheaper to run per year than an equivalent F-rated ship, the research suggests. Therefore there is little incentive for shipowners to invest in new, more environmentally friendly ships. James Mitchell, senior associate at Carbon War Rooms, said that following the financial crash any efficiency premiums for greener ships disappeared from the charter market. "These results are a challenge to the industry, to its business model, and to whether markets can be harnessed to help shipping meet the challenges of a low-carbon economy," he said in a statement. "But robust and transparent market information offers an opportunity to help resolve this challenge," he added. "Shipowners, knowing that more efficient ships present a financial advantage, can use free-to-access data on shippingefficiency.org to bolster their negotiations." The report also recommends that banks considering finance decisions for new ships should take into account the fuel efficiency savings available from the greenest ships. Tristan Smith, a lecturer at the UCL Energy Institute, said until these market failures are addressed any policy measures designed to reduce shipping emissions - such as a fuel levy or carbon price - would have a "greatly decreased impact". "This is because these policies work by magnifying existing market dynamics that reward efficiency and we don't currently see those dynamics in shipping," he said in a statement.