Call for Action on Decarbonizing Shipping Industry

The shipping industry is at a pivotal moment as it faces increasing calls to decarbonize and reduce its environmental impact. With international transportation aiming for net-zero greenhouse gas (GHG) emissions by around 2050, the focus is now on adopting alternative vessel fuels and implementing regulatory measures to achieve these ambitious targets.

Decarbonization Goals and Challenges

The International Maritime Organization (IMO) has set a goal to transition 5% to 10% of the shipping industry to alternative fuels by 2030, although current usage remains minimal. The organization is preparing to issue guidelines that will cover the entire lifecycle of these new fuels, set standards for usage, and introduce carbon pricing mechanisms.

Despite the ocean shipping industry producing significantly less CO2 than air transport—approximately 100 times less—it still accounts for about 3% of global GHG emissions. This figure could potentially rise to 5-8% by 2050 if substantial changes are not undertaken.

“New fuels alone won't achieve net-zero emissions,” experts assert, emphasizing the need for comprehensive regulations and incentives to drive industry progress.

Efforts over the next decade will concentrate on reducing emissions, but the availability of alternative fuels remains a significant barrier. Strategies such as maximizing ship utilization and reducing sailing speeds are being considered to curb emissions in the short term.

Industry Initiatives and Collaborative Efforts

Leading companies within the industry are taking steps toward decarbonization. CMA CGM, for example, aims to incorporate biogas and biomethanol into its operations by 2028, while AP Moller-Maersk is targeting net-zero emissions by 2040. The involvement of industry stakeholders and customers is crucial for achieving sustainability goals.

The Zero Emission Maritime Buyers Alliance (ZEMBA), comprising nearly 30 ocean freight buyers, highlights the importance of shipper support in this transition. The alliance, along with the Getting to Zero Coalition, which includes 200 maritime stakeholders, advocates for the adoption of zero-emission fuels and new technologies.

Ammonia bunkering trials are underway, but safety concerns have limited the number of ship orders using this fuel. Ports are beginning to prepare for the necessary infrastructure, with Singapore planning to offer ammonia bunkering by 2027 and Rotterdam having completed a successful ammonia transfer trial in April.

Policy and Regulatory Developments

At the international level, the 2025 United Nations Ocean Conference in Nice, France, co-hosted by France and Costa Rica, is set to address climate change and pollution impacting the ocean. The conference aims to adopt the Nice Ocean Action Plan, emphasizing the decarbonization of maritime transport.

The IMO agreed in April on mandatory emission limits, requiring shipowners to reduce emissions intensity by 30% by 2035, and by 65% by 2040. This decision lays the foundation for future decarbonization efforts, with a framework awaiting final adoption in October.

UN Secretary-General has urged countries to make bold pledges, with President Macron highlighting the need for multilateral cooperation to protect the ocean.

Wind-assisted propulsion is another technology being explored, with the potential to save up to 20% in fuel consumption. Energy efficiency technologies currently available are also expected to contribute to emission reductions.

Future Outlook and Next Steps

The shipping industry faces a critical decade ahead as it works towards the decarbonization of its operations. While the transition to zero-emission fuels by 2030 is an essential step, it requires coordinated action from industry, governments, and other stakeholders.

Ports are gearing up to support this transition, with preparations for ammonia refueling infrastructure underway. The combined efforts of industry leaders, technological advancements, and regulatory frameworks are needed to ensure the shipping industry can meet its emissions targets and contribute to a more sustainable future.

The importance of immediate action cannot be overstated, as the decisions made in this decade will have lasting impacts on the industry's ability to adapt to and mitigate the effects of climate change and pollution.