The European Commission has published the Transition Pathway for the European mobility industrial ecosystem to identify the ways to lead the green and digital transition.
The Transition Pathway includes the EU waterborne value chain, comprising of the shipbuilding and repair industry, maritime and inland waterway transport of goods and passengers, and port activities. It has a strategic dimension as more than 80% of the EU’s external trade and 40% of the EU’s internal trade are carried by sea and EU shipping controls 39.5% of the world fleet.
Driven by recent progress at the International Maritime Organization (IMO) and the adoption of several measures at EU level to reduce shipping emissions, the necessary transition to clean shipping is an opportunity for the EU waterborne industry to regain sustainable competitiveness, the report notes. It will notably require significant investments in new technology development in a market where the EU already plays a frontrunner role in RD&I.
According to the report it will also lead to new opportunities in terms of fleet renewal and retrofitting activities (i.e. energy efficiency improvements, conversion of ships to alternative fuels). The Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships adopted under the International Maritime Organisation that will enter into force in June 2025, aiming at making ship recycling safer and more environmentally friendly could represent a viable business for Europe.
However, the report highlights that the facilities needed for ship recycling are different from those used for ship building, and therefore a thorough preparation is needed before the new convention enters into force. For the boating industry, recycling and end-of-life of boats are critical and the sector has developed a roadmap together with the European Commission on this matter with concrete recommendations.
Recommendations for the sustainable competitiveness of the waterborne industry
- Develop new circular and sustainable business models and seizing the opportunities of the green maritime transition (e.g. fleet renewal investments and technology development)
- Improve manufacturing and operational efficiency through digitalisation, automation, and re-skilling
- Follow up dialogue with stakeholders to address the specific industrial competitiveness challenges and continue exploring new instruments for a level playing field and other appropriate sector-specific initiatives
- Support the introduction of sustainable and resilient requirements in public procurement but also in private procurement for fleets that are strategic for Europe, such as cabotage, shortsea shipping, passenger transport, fishing fleets, inland navigation, offshore renewable energy and Blue Economy
- Support the European waterborne industry preparation to the entry into force of the Hong-Kong Convention
Apart from publishing the report, the European Commission has called on industry stakeholders to make pledges in line with the actions identified in the Transition Pathway.
Commenting on the release of the report, Christophe Tytgat, Secretary General of SEA Europe, said that the Transition Pathway is an important acknowledgement by the European Commission that the maritime technology industry is critical for the greening and digitalisation of the waterborne sector.