The new P4G-Getting to Zero Coalition report “Shipping’s Energy Transition: Strategic Opportunities in South Africa” explores the potential for South Africa to benefit from international maritime decarbonization.
The report finds that South Africa, with its strong maritime connections and large renewable potential, has several promising business opportunities that could spur growth and a just transition, while accelerating decarbonization within and outside the maritime sector.
[smlsubform prepend=”GET THE SAFETY4SEA IN YOUR INBOX!” showname=false emailtxt=”” emailholder=”Enter your email address” showsubmit=true submittxt=”Submit” jsthanks=false thankyou=”Thank you for subscribing to our mailing list”]
Due to its large renewable capacity and unique location sitting at the gateway between the Atlantic and Indian Oceans, South Africa is, according to the new P4G-Getting to Zero Coalition report, well-positioned to benefit from the maritime decarbonization agenda on a both domestic and international level. The country holds the potential to accelerate the transition to cleaner forms of energy across the economy, creating several opportunities for the country.
However, to realize this potential, the report states, there is a need for South Africa to support the development of a policy framework capable of facilitating the transition to zero-emission shipping. This would require defining national climate objectives more clearly in maritime policies, as well as supporting and advancing international policies capable of accelerating the just transition to zero-emission fuels globally.
South Africa can play a strong role in building the global momentum towards zero-emission shipping, leveraging its own development goals while preparing to meet the future demands of the maritime industry. Unlocking international finance, establishing national and international cross-sectoral partnerships, easing financial and regulatory hurdles, and investing in climate-proof projects will be fundamental in the years to come
said Ingrid Sidenvall Jegou, Project Director at Global Maritime Forum.
Recommendations
#1 Prioritize port electrification as a key first step
Electrification of existing fossil fuel use of ports is an immediate step towards maritime decarbonization, wherever this change is possible. Switching port activities to rely mainly on electrical energy from renewable sources can reduce GHG emissions. Electrification can also reduce local air pollution emissions and maintenance and energy costs. Options for switching to electrification include electrifying docks for cold ironing; installing charging infrastructure to power logistics and freight handling with cranes and logistical onshore vehicles; cold storage; service vessels, such as harbor tugs and pilot vessels; and offices and buildings.
#2 Increase coordination and guidance to support port development towards decarbonization & a just transition
There is a high significance of passing and calling ships on air quality and GHG emissions in South Africa. Furthermore, ports can be areas of opportunity for employment and investment. As such, it is clear that ports are both a critical enabler of emissions reductions and socio-economic opportunities. Therefore, increased coordination and national planning from the Department of Transport and associated port authorities, such as Transnet National Ports Authority, could help to align and structure various efforts and initiatives taking place in South African ports today. This would also make sure that wherever appropriate the broadest co-benefits are considered and ensure that value is recognized and used in justifications for sustainable port investments and development.
#3 Prepare to source or produce SZEF for bunkering, port use & export
Shipping will need to rapidly transition away from fossil fuels, particularly during the 2030’s. Due to the large quantity of international ships calling and passing, South Africa is one of the leading fossil fuel bunker suppliers globally and is currently associated with large volumes of fossil fuel imports. However, the excellent potential for this energy import to be switched to domestic production, thereby adding significant additional jobs and direct investment. Indeed, planning is already underway for the three strategic business opportunities identified. As SZEFs move to implementation, all aspects of ports need to be prepared to switch – opportunities exist both as a bunker fuel, for use in port, as well as for export.
#4 Become a Green Port
Ports are nodes of multiple sources of pollution, from arriving and departing vessels, onshore trucks and rail, as well as their own operations. Port authorities could invest in creating a port ecosystem that positively contributes to air and environmental quality through adoption of technology solutions, improved facilities, and optimization of terminal and ports to reduce at berth time. Initiatives like the UN Environmental Programme’s “Sustainable and Clean Port program” offer best practices and a framework to guide port actors.
#5 Sign the Declaration on Zero Emission Shipping by 2050 to increase climate ambition
South Africa should continue to represent national ambition and climate priorities in international fora. The current climate ambition of the IMO – to reduce GHG emissions by 50% by 2050 – is not aligned with the Paris Agreement’s goals. To grasp the potential related to SZEF for shipping, there needs to be a clear signal from the IMO to work towards zero emissions by 2050. Signing the Declaration on Zero Emission Shipping by 2050, which aligns with the Paris Agreement, would further emphasize South Africa’s commitment to reduce shipping emissions and signal political ambition to adopt goals for 2030 and 2040 that place the sector on a full decarbonization pathway.
#6 Enable a just transition
South Africa’s SEZs offer important growth incentives to strengthen business opportunities, job generation, and innovation. There is a large potential to unlock shipping decarbonization and the low-carbon economy by working with SEZs to create sustainable green jobs. Investments into relevant renewable energy projects hold the potential to create more near-term jobs than fossil fuel investments, in addition to providing comparable forms of employment for transitioning away from fossil-fuel related jobs. Financing requirements and approvals for new projects could include a thorough assessment on how future investments into relevant infrastructure will serve existing objectives like regional development, green growth, and the creation of quality jobs.
#7 Build alliances to drive market change
No single maritime actor has sufficient market influence to enable shipping decarbonization alone. Gathering industry actors into a non-competitive forum for collaboration can send a collective demand signal to fast track decarbonization action. This can be seen in the Cargo Owners for Zero Emission Vessels as well as buyers alliances and green investor alliances, such as the Sustainable Freight Buyers Alliance, which serve to pool market influence. Interested industries could join initiatives like the African Hydrogen Partnership Trade Association, which is dedicated to the development of green hydrogen and related business opportunities in Africa.
EXPLORE MORE AT GMF’S REPORT ON SOUTH AFRICA
