Reports map possible path to shipping decarbonisation

The shipping sector needs to speed efforts to decarbonise, and could take a cue from the aviation industry, according to separate reports into how the industry can reduce its environmental footprint.

A survey of industry leaders by Shell and consultancy Deloitte found a broad focus on decarbonisation, but identified a "lack of a global regulatory framework" and "limited customer demand for lower-emission shipping" as barriers to further progress.

The survey outlined five ways to accelerate efforts in the next three years. First, charterers and customers of shipping companies need to adopt commitments to 'green' criteria in long-term contracts, with likely adopters being state-owned and publicly-listed companies. Secondly, the International Maritime Organisation (IMO) needs to adopt guidelines — which it plans to do in 2023 — that are in line with bodies such as the EU, China and the US.

The industry also needs to develop more research partnerships in order to pool capital, resources and expertise, and to conduct more pilot projects, primarily on routes with predetermined schedules such as containerships. Lastly, it said existing initiatives, such as the Getting to Zero Coalition, need to increase their reach and participations and consolidates their objectives.

These objectives will allow for technology adoption to accelerate in the 2023-30 period. This can be achieved by "de-risking" early investments through flexible ship design, new port coalitions, pressure from investors and financing schemes that incentivise low-carbon shipping, the Shell-Deloitte report said. And post-2030, the main objectives should be scaling new fuel production and bunkering infrastructure.

A report from non-profit organisation the Environmental Defense Fund (EDF) and commercial advisory service University Maritime Advisory Services (UMAS) said the IMO could benefit from mirroring the approach of the airline industry.

It said that the IMO's initial strategy — which calls for reducing CO2 emissions by at least 40pc by 2030 and by 70pc by 2050, compared with 2008 levels — does not include guidelines on the definition and development of low- and zero-carbon fuels for shipping and their degree of applicability, unlike the International Civil Aviation Organisation (ICAO), which caps global aviation emissions at 2019 levels by requiring airlines to find ways to reduce emissions.

The report said that the shipping industry should ensure that policy incentives to promote a shift away from fossil fuels do not simply shift emissions elsewhere. It can do this by including all types of emissions in its accounting process, by taking into account GHG emissions along the supply chain, and by using ICAO's 10pc emission reduction threshold as starting point for a similar threshold for alternative marine fuels, but consider a more ambitious targets such as 50pc.

It said that the IMO should include a full range of sustainability criteria for all alternative fuels, should adopt measures to prevent double counting of emission reduction claims, and should ensure full transparency by including third-party verification and certification.

By Nicolas Kyriakoglou and Giulia Squadrin