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The shipping industry is preparing for huge investments in decarbonization, according to the International Maritime Organization
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This is due to recently approved regulations for net-zero ship fuels and emissions set for adoption in October
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The path to net-zero transformation will have a sector-wide impact on everything from supply chains and business models, to ships, ports and the maritime workforce, the agency said
The shipping industry is preparing for huge investments in decarbonization due to recently approved regulations for net-zero ship fuels and emissions, according to the International Maritime Organization (IMO).
The global industry’s path to net-zero transformation “will have a sector-wide impact on everything from supply chains and business models, to ships, ports and the maritime workforce,” IMO said in a statement.
The new regulations were approved in April and are set for adoption in October.
READ: IMO approves net-zero rules for shipping
According to IMO secretary-general Arsenio Dominguez, “Regulations alone cannot do the job. We need technological development and we need alternative fuels… And that can only happen in one way – with investment.”
Speaking at the Blue Economy Finance Forum in Monaco this week, Dominguez said this includes investing in scaling up production of alternative fuels in large enough quantities to replace the 350 million tons of fuel oil burned by ships annually.
The new set of regulations – known as the ‘IMO Net-Zero Framework’ – takes a two- pronged approach: a global fuel
standard that limits the greenhouse gas (GHG) fuel intensity of marine fuels, and a price placed on the GHG emissions from ships.
The regulations send a clear signal to fuel producers, while rewarding ‘first movers’ – shipping companies which take the risk to adopt low- and zero-emission solutions early, which are then able to share their experiences and expertise with others.
Upgrading port infrastructure and bunker operations will also be required to safely provide clean energy for ships when they call at ports globally.
“It is a complete transformation of the shipping business. It will take ecosystems to do it together,” said Christine Cabau-Woehrel, Executive Vice-President of shipping and logistics company CMA CGM.
She added: “It will be a long and difficult journey, but we want to be running in front.”
According to the World Shipping Council (WSC), there are at least 200 container ships already in operation that can run on zero or near-zero emission fuels, while close to 80% of all new orders for container ships and vehicle carriers will have the same hybrid capability.
Joe Kramek, WSC president, said: “The liner industry has already invested $150 billion in decarbonization. It is unprecedented for the transport sector. But we need the fuel supply… it’s a tremendous investment opportunity.”
The IMO Net-Zero Framework works alongside earlier measures adopted by the IMO to enhance energy-efficient ship design, operational improvements and carbon intensity ratings. They will be reviewed every five years, with emission limits tightened over time.
Dominguez said the regulations are mandatory, to be applied to all ocean-going ships trading internationally, regardless of their flag.
There will be an impact on training, with nearly half a million seafarers requiring upskilling by 2030, and safety measures will need to be comprehensively updated to ensure fuels are deployed safely and efficiently.
He urged the international community to focus on concrete actions and implement the various global commitments already agreed.
“It’s time for us to move from the statements and commitments into actions. That’s what we’ve been doing at IMO for over a decade. That is what we are going to demonstrate again in October, and we will not stop there,” said Dominguez.
He added: “Decarbonization has a cost. We have already spent money in polluting the environment. It is time for all of us to invest in cleaning it, and making it sustainable for future generations.”
