The World Shipping Council (WSC) has identified six regulatory and economic pathways, all of which are critical for the nations of the UN International Maritime Organisation to address for a successful maritime energy transition.
As WSC says, there will be “no single or simple fuel technology solution, no single party that can set the pace, no single regulation that will drive the necessary change.”
The reality will be a complex multi-technology, multi-stakeholder development process that needs to be driven and supported by an array of mutually reinforcing global regulations. Maritime actors, technology providers, fuel innovators, organisations and regulators will need to work together to decarbonise shipping in line with the Paris agreement.
The path to zero emissions
Taking the above into consideration, WSC has identified six regulatory and economic pathways, all of which are critical for the IMO MEPC to successfully navigate the maritime energy transition:
- A global price on carbon combined with dependable and broad-based “buy down” programmes that effectively level the playing field among newer low and zero GHG ships and the tens of thousands of ships that will still be burning conventional fuels.
- Transparent well-to-wake life cycle analysis of fuels, breaking out well-to-tank emissions and tank-to-wake emissions, combined with regulatory mechanisms to incentivize first-movers for use of alternative fuels that offer significant GHG reductions even if they are not available from fully renewable sources from the start.
- Integrated development of global production and supply of zero GHG fuels through partnerships between IMO member states and energy providers, as well as regulatory provisions that allow for flexibility in the initial stages of the energy transition.
- A Green Corridors Programme to accelerate an equitable fuel and technology transition, introducing zero GHG ships and fuels across trade lanes where the necessary shoreside energy infrastructure is first available.
- New build standards that support the energy transition, such as requiring ships built after a certain date to be able to operate on zero GHG fuels or not allowing the construction of vessels that can only operate on fossil fuels after a certain date.
- Applied R&D for shipboard and shoreside systems that allow the safe use of zero GHG fuels is necessary to put zero emission ships on the water. To avoid accidents and stranded assets, a significant increase in the level of R&D effort and investment is needed.
We are committed to decarbonising shipping and have multiple ideas and projects in the pipeline. But to be able make these investments, to take the necessary risks, we – and all other maritime actors – need a regulatory framework that addresses the key strategic issues
said John Butler, President & CEO of WSC.
I fully support these pathways described by WSC. We must decarbonize our sector, and there are multiple regulatory and policy elements that are necessary to create the foundation we need to reach the ultimate goal.
commented Bud Darr, Executive Vice President, Maritime Policy and Government Affairs at MSC Group in his Linkedin account.
In addition, a study produced for OGCI and Concawe by Ricardo, outlines three possible pathways broadly characterised as:
- The early pursuit of green ammonia and hydrogen
- Replacing fossil fuels with drop-in liquid and gaseous biofuels
- Maximum uptake of energy efficiency technologies, carbon capture onboard vessels and the gradual increase of green ammonia and methanol