The Gate rudder system (GRS) was recently introduced as an innovative energy-saving device (ESD) for ships, and it is the most attractive ESD currently used in the market, with double figures of fuel savings in full-scale (>10–35%) compared with a ship with a conventional rudder system (CRS). Although there are few new ship applications of GRS, the recently completed EC-H2020 GATERS project successfully demonstrated its unique energy-saving and manoeuvrability benefits as a “retrofit” solution for an existing general cargo vessel for the first time. The project results suggested that the GRS holds significant potential for retrofitting existing ships to enhance fuel efficiency (~35%) and improve manoeuvrability. Nevertheless, the application was a comprehensive undertaking requiring various work tasks such as component manufacturing, removing existing systems, and modification and upgrading works, with substantial energy consumption and environmental impacts. Therefore, it was insightful to study energy use and environmental impacts in a GRS retrofit process. This study developed and implemented a comprehensive energy consumption and carbon footprint assessment framework for the GRS retrofit in the GATERS project. A detailed assessment of energy consumption and related carbon emissions was performed during the major stages of manufacturing, system removals, and modifications and assembly in the GRS retrofit. Also, the potential savings in energy use and emissions were addressed. The results demonstrated that the manufacturing stage was the most energy-intensive phase, being responsible for 91.4% of total electricity and 46.7% of fuel-based thermal energy use. The system removals accounted for 53.3% of the fuel-based thermal energy, whereas the modification and assembly work accounted for about 7.7% of the total electricity use. Additionally, various measures such as clean electrification, energy efficiency, mould/tool reuse, and component reuse to reduce the energy consumption and related carbon emissions in future GRS retrofit applications were addressed and discussed together with their reduction potentials.