Is the shipping industry doing enough to tackle its carbon footprint?
The shipping industry, responsible for approximately 3% of global greenhouse gas (GHG) emissions, has been under increasing pressure to reduce its environmental impact. In July 2023, the International Maritime Organization (IMO) adopted a new strategy to achieve net-zero GHG emissions by or around 2050. This ambitious plan also includes interim goals of a 20% reduction by 2030 and 70% by 2040 compared to 2008 levels.
The Path to Net-Zero
To meet these targets, the shipping sector must undergo significant changes, including the adoption of alternative fuels and innovative technologies. The IMO’s revised strategy calls for at least 5% of the energy used in international shipping to come from zero or near-zero GHG emission sources by 2030. Achieving this goal will require a concerted effort from both public and private stakeholders to invest in research, development, and the implementation of solutions such as green hydrogen, ammonia, and methanol.
Policy Measures and Global Initiatives
The European Union has taken a proactive stance by integrating maritime emissions into its Emissions Trading System (ETS) as of January 2024. This policy compels large vessels entering EU ports, regardless of their registration, to account for their CO₂ emissions. The move is intended to push for greater energy efficiency and the use of low-carbon technologies, positioning the EU as a leader in environmental regulation within the shipping sector.
Countries around the world are taking steps to address emissions from maritime transport, recognising the critical role this sector plays in global trade and its impact on climate change. Policies similar to the EU’s ETS are being discussed in other regions, as governments strive to align their environmental objectives with international climate agreements.
Industry Responses
Key industry players have also ramped up their commitments to reduce emissions. For example, Maersk, one of the world’s largest shipping companies, has pledged to reach net-zero emissions by 2040. The company has already made substantial investments by ordering 20 vessels powered by green methanol and retrofitting 60 existing ships to operate on dual-fuel technology. Despite these promising developments, challenges such as higher fuel costs and limited green methanol availability remain significant hurdles.
Technological Innovations and Challenges
Technological advancements are crucial for the industry’s decarbonisation. In October 2024, the world witnessed a breakthrough when a tugboat powered by cleanly produced ammonia completed its maiden voyage. This achievement underscores the potential of alternative fuels to transform maritime transport. Other innovations include wind-assisted propulsion systems, hybrid engines, and electrified short-sea shipping vessels, all contributing to emission reductions.
However, the industry’s reliance on fossil fuels and the need for substantial infrastructure overhauls pose considerable challenges. The transition to sustainable energy sources necessitates coordinated global efforts involving governments, port authorities, fuel suppliers, and shipping companies.
The Cost of Decarbonisation
The financial implications of shifting to cleaner fuels are substantial. The estimated cost of adopting and scaling alternative fuel technologies can be prohibitive, especially for smaller shipping operators. CPZ Architects’ cost analysis of Delray Beach’s container project, for instance, illustrates the broader issue: sustainable development often carries a significant price tag. The global shipping industry’s estimated transition cost runs into trillions of dollars, prompting calls for increased public and private investment.
Green technologies such as hydrogen fuel cells and ammonia engines remain in the developmental stage, making them more expensive than traditional options. Ensuring the affordability and availability of these technologies will be crucial to achieving long-term decarbonisation goals.
Collaborative Solutions
The path to net-zero emissions will require unprecedented levels of collaboration among stakeholders. Partnerships between governments, research institutions, and private enterprises are essential to accelerate innovation and implement practical solutions. The formation of alliances and initiatives such as the Poseidon Principles and the Getting to Zero Coalition demonstrate that collective action is possible and effective.
“Achieving net-zero in the shipping industry will not only require cleaner fuel options but also a paradigm shift in how we approach maritime logistics.” — Industry Expert
While the shipping industry has made notable progress in addressing GHG emissions, the journey towards net-zero by mid-century remains complex and fraught with challenges. Continued commitment, policy support, and technological innovation will be necessary to steer maritime transport towards a more sustainable future. It is only through coordinated global efforts that the industry can navigate the turbulent waters of decarbonisation and emerge greener and more resilient.
