32 I SAFETY4SEA Log I March 2024 I ISSUE 90 safety4sea.com be compatible with net-zero fuels such as hydrogen or ammonia. At the same time, there is ensuing support from the industry partners on voyage optimization, virtual arrival (VA) and Just In Time (JIT). Member states are also bringing in special green notations for vessels to encourage and support the decarbonization drive. Various projects are underway between IMO and Member states/industry partners. Challenges for Smaller Operators • Higher capital (building) costs: can go up to nearly 200-300% per vessel • Heavier displacement: lesser cargo/ passenger carrying capacity will pose a problem • Sophisticated vessels in comparison to current conventional boats • Uncertainty regarding design, technology, endurance, maintenance, spares • Questions regarding uninterrupted availability of alternate/green fuels • In the case of electrification, safety concerns regarding fires, lead/acid pollution etc. • Human capital, training, and expertise • May not be a financially viable venture for smaller operators • Possible increase in H&M premiums Different green solution strategies Among the different alternative fuels, one the most popular lower carbon fuels is LNG. Whilst there are many advantages over conventional fossil fuels, there also lies the problem of methane slip wherein unburned methane escapes to the atmosphere in between the well to wake process. Methane is also actually DECARBONIZATION: A RISK AND INSURANCE PERSPECTIVE When the 2018 IMO GHG Strategy was initially released, although a lot of changes were required to be made, it was still deemed to be within reach. The new IMO targets released in 2023, now require 70% reduction in carbon footprint by 2040 and set the introduction of an extra element requiring to reduce GHG components by 70% to 80%. Now, the shipping industry is to achieve Net-Zero by 2050. This has been a wake-up call for all the industry players and all efforts must be increased exponentially. 2018 IMO GHG Strategy vs 2023 IMO Revised GHG Strategy In 2018, IMO agreed the following: • To reduce carbon dioxide (CO2) emissions by at least 40% by 2030 • To reduce carbon dioxide (CO2) emissions by at least 70% by 2030 • To reduce total GHG emissions by at least 50% by 2050 In 2023, IMO revised above targets and agreed the following: • Additionally, uptake of zero/near-zero GHG strategy by 5-10% by 2030 • To reduce total annual international shipping GHG by 20-30% by 20230 • Carbon dioxide (CO2) emissions by at least 70% by 2040 • To reduce total annual international shipping GHG by 70-80% by 2040 • Net zero annual GHG emissions by at least 2050 Addressing climate change In Singapore, from 2030, all new harbour crafts should be fully electric or be capable of using B100 biofuels or During the 2023 SAFETY4SEA Singapore Forum, Capt. Hari Subramaniam reminded us that the clock is ticking as the industry continues to hurtle towards 2030, where the first waypoint of the IMO GHG strategy will be reached. Capt. Hari Subramaniam Regional Head – Business Relations, The Shipowners’ Club OPINION
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