Track shipments

Expedition ‘partly on track’ on decarbonization goals, moving from pilots to producing zero-emission fuels now crucial

The shipping industry is “partially on track” with advances in technology and the supply of Zero Emission Scalable Fuels (SZEF) to meet the target of a 5% share of international marine fuels by 2030, according to a new joint report produced by UMAS and the United Nations High Level Champions on Climate Change.

The results show significant progress, particularly in terms of commitments from industry, national governments and positive developments within the International Maritime Organization (IMO).

Currently, at least 203 maritime transport decarbonization pilot and demonstration projects are in the works. At the international level, progress has been observed with regard to refueling and the evolution of safety guidelines. However, the crucial next step is to move from pilot projects to zero-emission fuel production, investment and infrastructure development.

It is estimated that the total incremental capital needed to decarbonize shipping is $1-1.4 trillion, with more than 80% of this figure upstream (e.g. associated with infrastructure investments).

Based on the UMAS analysis, it is expected that the industry will need to commit to investing around $40 billion per year by 2030 for bunkering and the production of zero-emission fuels, and the report highlights the need for greater clarity on funding commitments for SZEF generation infrastructure.

Furthermore, current orders for SZEF-ready vessels are expected to increase further, while a true zero-carbon freight market is expected to emerge.

On politics, authors, Catherine Palmer, Expeditions Manager for the United Nations High Level Climate Champions Team, and Domagoj Baresicconsultant at UMAS, said it is essential that positive political signals, such as consensus on pricing GHG emissions, translate into firm agreements at the IMO in 2023, the coming year offering a significant window of opportunity ahead of IMO’s greenhouse effect review. Gas strategy.

“To achieve the 2030 breakthrough goal, we need short-term action at the project level outlining the tangible collective action required. This report is an honest record of progress that must continue to be monitored and tracked. Looking ahead to COP27, this is an important step to signal a real shift to delivery to convert those commitments and promises into action and solutions,” said Palm.

“For the shipping industry to decarbonise, several actions that can increase production and adoption of scalable zero-emission fuels in the industry are now required. This report provides evidence of the significant progress that has been made to decarbonize shipping, but at the same time shows that significant new action is needed The evidence presented shows that now is the time to take the necessary steps to ensure that by 2030 the industry commits to a decarbonization trajectory”, baresic added.

Partial progress has been noted in financing the production of zero-emission fuels, with growing commitments in ship financing such as the “Poseidon Principles”, with 28 current signatories accounting for over 50% of maritime debt financing .

Other commitments such as the “Clydebank Declaration” increase the potential for future private funding, particularly in terms of green corridors. However, limited progress has been seen in terms of infrastructure funding commitments and the creation of desirable financial mechanisms for the adoption of scalable zero-emission fuels such as contracts for difference, the report further notes.

Overall, significant progress has been made in commitments that are beginning to translate into action through the creation of standards, improvements in transparency, and cross-value chain collaborations coming together to test and pilot demonstrations.

The authors believe there is hope that this will put the industry on track to achieve enabling actions by the middle of this decade, setting the course towards the 5% breakthrough goal. here 2030.

The first-of-its-kind report, “Climate Action in Shipping – Progress into Shipping’s 2030 Breakthrough”, was launched on September 21 during New York Climate Week, ahead of the annual Global Maritime Forum Summit and alongside the Ministerial Meeting on clean energy. Global Clean Energy Forum. It was supported by the Getting to Zero Coalition, Lloyd’s Register and the Mission Possible Partnership.