🕒 Article read time: 5 minutes
Navigating net zero: The shipping industry's green transition
By Jesse Fahnestock, Director, Decarbonisation, Global Maritime Forum.
The shipping industry, a vital cog in the global economy, faces an unprecedented challenge: transitioning to a net zero future.
As the world grapples with the urgent need to mitigate climate change, the maritime sector-currently responsible for approximately 3% of global greenhouse gas (GHG) emissions - must accelerate its decarbonisation efforts. Without doing so, and with global trade predicted to rise, emissions from the maritime sector could reach up to 10% of greenhouse gas emissions by 2050.
The International Maritime Organization (IMO), the global authority responsible for shipping safety and reducing marine pollution, has introduced ambitious goals to achieve net zero emissions by 2050 as part of its Greenhouse Gas Emissions Strategy, which came into force in 2023. As part of these efforts, a key target for 2030 is to ensure that 5% to 10% of shipping fuel is derived from zero - or near-zero emission fuels.
Achieving net zero in shipping is complex due to the industry’s unique operational and technical constraints. Unlike other sectors where electrification or renewable energy can be more easily implemented, shipping involves large vessels operating across vast distances with long life cycles and fuel-intensive propulsion systems.
The rise of zero-emission fuels
The backbone of decarbonising shipping successfully will be the development and adoption of zero-emission fuels. Currently, the vast majority of the global fleet runs on heavy fuel oil, a highly polluting fuel source.
Several alternative fuel options are currently under consideration to replace it, including green ammonia, a carbon-free fuel with significant promise but requiring breakthroughs in storage, handling and safety protocols, which the industry is tackling through a number of pilot projects.
There’s also green methanol, another promising candidate, but one with significant production, storage and cost challenges due to its energy intensity and reliance on a source of renewable carbon.
Each of these fuels has advantages and drawbacks, and no single solution is expected to dominate in the short term. The path to decarbonisation will likely require a multifuel solution, with regional and operational differences dictating which fuel is best suited for particular trades and routes.
Projections from analysis conducted by the Global Maritime Forum and Arup, “Green Jobs and Maritime Decarbonisation”, show that shipping’s demand for zero-emission fuels could reach up to over 500 million tonnes by 2040, rising to 600 million tonnes by 2050, which will require trillions in capital investment. This can prove to be a boon for the Global South, where conditions are optimal for the production of zero-emission fuels, creating a new wave of green jobs across the supply chain, which could create up to four million opportunities by 2050.
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Published On: 03/01/2025 14:30:40
