A new report by Arup, Lloyd’s Register (LR) Maritime Decarbonization Hub, Oceans North and Vancouver Maritime Centre for Climate, explores the benefits Canada might have from investing in infrastructure that would allow the use of low and zero emissions shipping fuels.
The report also highlights the positive impacts that this infrastructure could have on Canada’s economy, as well as on the natural environment and communities living nearby, if developed responsibly.
Key issues in the report
- Accelerated action is needed to tackle greenhouse gas emissions from shipping
- An urgent transition away from fossil fuels is required
- The transition represents a significant infrastructure opportunity and Canada is well placed to maximize the benefits
- Green shipping corridors can accelerate maritime decarbonization in Canada
Green shipping corridors
According to the study, green shipping corridors are one way of supporting maritime decarbonization, bringing together likeminded stakeholders to address the challenges that are holding back development and deployment of zero emission marine fuels.
As the report notes, green corridor deals have been on the rise the past two years. For instance, just this month various green corridors deald have been signed such as between the ports of Algeciras and Rotterdam, between Iberdrola, ACE Terminal and Hynetwork Services and the Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping and the Chilean Ministries of Energy Memorandum of Understanding (MoU) focusing on the development of green corridors.
Furthermore, Australia and Singapore have commenced discussions to explore areas of cooperation in green and digital shipping and will establish a Singapore-Australia Green and Digital Shipping Corridor by the end of 2025.
Fuel production pathways
The study also focusses on fuel production pathways that could offer significant reductions in lifecycle greenhouse emissions compared to conventional fuels thereby supporting the decarbonization of shipping on a trajectory aligned with the Paris Agreement.
Furthermore, the report backed the idea that the new infrastructure required to supply low and zero emission fuels to first mover green shipping corridors will attract significant investment.
Key findings in the report:
- Canada has already identified green shipping corridors as an effective means of accelerating maritime decarbonization
- There is a significant opportunity presented by maritime decarbonization and Canada could be well positioned to realize it
- Green shipping corridors could help to drive demand for zero emission fuels produced in Canada
- The total value of opportunity from green shipping corridors includes a broad range of potential co-benefits
