A consortium of shipping associations is calling for a $5bn R&D fund to create low-carbon alternatives to fossil fuel-driven engines.
The research vessel “Atair”, the first in the world to be powered by low-emission liquefied natural … [+]
The shipping sector has long been one of the most polluting industries in the world, thanks to its use of ‘bunker fuel’, the dirtiest and least refined oil available.
Around 90% of global trade is moved by ship and the industry is currently responsible for around 2% of emissions, but this figure is expected to grow by between 50% and 250% by 2050 if action is not taken now.
However, because most of its emissions take place out of sight, on the high seas, the sector has flown under the radar until recently. At the same time, because of the global nature of the industry, it has been difficult to get agreement on taking action to cut emissions. The industry’s governing body, the International Maritime Organization, has proposed measures to cut emissions of greenhouse gases (GHGs) and other pollutants, but many observers say these are inadequate and lacking in urgency.
But as other sectors have started to get their houses in order, the spotlight on the shipping industry has increased and companies have started taking matters into their own hands. Now, as rules to limit sulphur dioxide emissions come into force at the start of 2020, the global maritime transport industry has come up with a plan to form the world’s first collaborative shipping research and development programme to tackle the industry’s carbon emissions as well.
The plan envisages companies committing $5 billion over a 10-year period with the aim of accelerating the development of commercially viable zero emission ships by the early 2030s.
This will be necessary to meet IMO targets that were finally introduced in 2018 that include an absolute cut in the sector’s total greenhouse gas emissions of at least 50% by 2050, with full decarbonisation shortly after. The 2050 target will require a carbon efficiency improvement of up to 90%, which is incompatible with a continued long-term use of fossil fuels by commercial shipping.
The International Chamber of Shipping says that meeting the IMO GHG reduction goals “will require the deployment of new zero-carbon technologies and propulsion systems, such as green hydrogen and ammonia, fuel cells, batteries and synthetic fuels produced from renewable energy sources.
“These do not yet exist in a form or scale that can be applied to large commercial ships, especially those engaged in transoceanic voyages and which are currently dependent on fossil fuels,” it adds.
To help develop them, the Chamber proposes setting up an International Maritime Research and Development Board (IMRB), a non-governmental R&D organization that would be overseen by IMO member states. The Board would be financed via a mandatory levy of $2 per tonne of marine fuel, which would raise around $5 billion over the next decade. This funding “is critical to accelerate the R&D effort required to decarbonise the shipping sector and to catalyse the deployment of commercially viable zero-carbon ships by the early 2030s,” the Chamber, which represents shipowners, said.
The funding could be bigger if other stakeholders such as technology manufacturers get involved as well. “A global fund can be established quickly, and the shipping industry is confident that other stakeholders will also want to contribute, potentially generating substantial additional funding for R&D,” added the Chamber.
The group of shipping associations that came up with the proposal has sent it to the IMO, saying the fund could be in place by 2023. The scheme will be discussed by governments in London at the next meeting of the IMO Marine Environment Protection Committee in March 2020.
“The coalition of industry associations behind this proposal are showing true leadership,” says Esben Poulsson, chairman of the International Chamber of Shipping. Innovation is vital if we are to develop the technologies that will power the 4th Propulsion Revolution. This proposal is simple, accountable and deliverable and we hope governments will support this bold move.”
Guy Platten, secretary general of the International Chamber of Shipping added that “Greta Thunberg is right to say that ‘creative accounting and clever PR’ often lie behind supposed commitments to sustainability, but our plans are transparent, and our regulator has teeth. Now we ask the wider shipping community for their blessing. Change on this scale is difficult and often daunting. But in this case, it could not be more necessary.
The international shipowner associations making this proposal, which collectively represent all sectors and trades and over 90% of the world merchant fleet, are: Bimco, Cruise Lines International Association, Intercargo, Interferry, the International Chamber Of Shipping, Intertanko, the International Parcel Tankers Association and the World Shipping Council.
