“GREEN SHIPPPING”, 2050
Like so many other industries, the maritime industry is heading or at least intends to head towards a gradual decarbonisation in this century. While it is true that, as published in the report of the United Nations Conference on Trade and Development (UNCTAD) on the analysis of maritime transport in 2023 (1), greenhouse gas emissions from the maritime sector have increased by 20% in the last decade, and that the sector operates a largely older fleet powered almost exclusively by fossil fuels, it is no less true that at the recent United Nations Climate Conference (COP28) in December 2023, numerous milestones were set in the interests of the longed-for decarbonisation.
In principle, the year 2050 has been set as the target date for the total decarbonisation of the sector according to the new strategy published by the IMO, which will undoubtedly require massive capital investment that could lead to a rise in the costs of maritime transport, and the consequent concern for all those island developing countries that are highly dependent on maritime trade.
The UNCTAD report stressed how environmental objectives will need to be balanced against economic needs, but in any case, the cost of inaction far outweighs the investment required. Similarly, it outlined how factors such as cleaner and more efficient fuels, and digital solutions such as AI or blockchain, are sure to play a key role in improving the sustainability and efficiency of maritime transport.
However, the question of who should be responsible for the transition to full decarbonisation is a complex one.
Well, it appears that the major flag states such as Liberia, Panama and the Marshall Islands will be responsible for meeting and enforcing the new green shipping standards, but in turn, the burden of making investments in alternative fuels, facilities to supply such fuels and more efficient and greener ships, falls on maritime operators in general, ports and the energy industry.
Some of the COP 28 milestones that may have the most potential to help achieve full decarbonisation in maritime transport are:
IN RELATION TO GREEN MARITIME CORRIDORS:
The US announced its partnership with the UK, Canada and Korea to form green shipping corridors for major shipping lanes. In parallel, the US and Korea also announced that they are undertaking feasibility studies on the use of green ethanol or ammonia to power ships on selected routes.
The UK, for its part, also announced that agreements have been reached on green maritime corridors, including the creation of an International Green Corridors Fund hand in hand with the Netherlands, Norway and Denmark.
The pre-feasibility study of the Chilean Green Corridor has been completed and feasibility studies are underway.
ON ALTERNATIVE FUELS AND THE PROGRESS OF SHIPS:
The Pacific Blue Shipping Partnership (Fiji, Marshall Islands, Kiribati, Solomon Islands, Tonga, Tuvalu, and Vanuatu) – committed to the retrofitting/replacement of more than 11,000 vessels among the 7 member countries.
France announced a USD 800 million investment in green shipping innovations, as well as the creation of a USD 1.2 billion public-private investment fund as part of its national maritime decarbonisation plan, including already USD 500 million in public investment and USD 200 million from CMA CGM for investments in port infrastructure, sustainable marine fuel production, retrofitting and replacement of existing vessels and decarbonisation of the government fleet.
The US Department of Energy invested $7 billion in hydrogen hubs across the country, working in conjunction with several of its ports.
In light of this, together with the other milestones achieved at COP28, it is clear that the outlook for the maritime sector has changed significantly. Maritime transport maintains the lowest level of CO2 emissions per tonne/mile compared to all other types of transport, and the sector is certainly keen to maintain this position as other transport sectors decarbonise as well, having demonstrated at COP28 that shipping is making efforts to invest in and take advantage of the opportunities offered by the energy transition.
