Why Maritime Decarbonization Matters?

The maritime sector is critical to global trade, with roughly 80% of worldwide merchandise by volume, while also constituting about 2–3% of global CO2 emissions (International Maritime Organization, 2020). As global climate concerns intensify, decarbonization and sustainability of the maritime sector has become increasingly important to achieve climate-related targets and goals, outlined in the Paris Agreement and to also protect marine ecosystems affected by pollution (IPCC, 2022a; IPCC, 2022b).

The maritime sector is a large and growing source of greenhouse gas emissions, although significant fuel consumption is required to ensure smooth flow of goods. GHG emissions from the maritime sector are projected to increase substantially by 2050 in the absence of further regulations (ICCT). Container ships and bulk carriers, which together account for a substantial share of maritime sector’s CO₂ emissions are the biggest contributors to the greenhouse gas emissions (OECD).

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The significant contributions of the maritime sector to the GHG emissions are in the form of CO2, sulfur oxides (SOx), nitrogen oxides (NOx), and particulate matter which are gravely impacting climate and human health (World Bank, 2021). Due to a continuous increase in the trade volumes, the overall GHG emissions from the maritime sector are expected to grow despite enhanced use of efficient fuels and overall energy efficiency practices (Fourth IMO Greenhouse Gas Study, 2020).

Decarbonization of Maritime Sector

By 2050, the International Maritime Organization (IMO) aims to cut down total GHG emissions from maritime sector by at least 50% compared to 2008, and to take efforts and implement strategies for achieving net zero (IMO, 2018). These targets also guide the global policies and industry priorities to be able to align with the decarbonization goals of the maritime sector. As part of broader climate strategies under the EU Fit for 55 packages, another initiative, Global Carbon Pricing Initiatives of the European Union, is also advancing the inclusion of shipping GHG emissions into its Emissions Trading System (ETS) (European Commission, 2021).

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Maritime fuel price is yet another issue needed to be addressed and countries like New Zealand and Canada are exploring the flexibilities in carbon pricing for maritime fuels (CPLC, 2020). Norway implemented incentives for electric and zero-emission ferries, through Regional & National Policy Actions. On the other hand, Japan is also promoting hydrogen fuel research for shipping (DNV, 2022) and the United States is developing stricter emission standards aligned with IMO goals (EPA, 2021).

Science Based Targets for the Maritime Sector

The SBTi developed the Science based Targets setting guidance for the maritime sector and it is the first framework in the world for the maritime sector to establish near term and long-term targets in alignment with 1.5°C. The guidance is for companies that own, operate and charter sea vessels and companies whose value chain include maritime sector. It provides information on how to measure GHG emissions, define target boundaries, and set decarbonization targets for companies in the maritime sector.

The guidance also introduces maritime-specific emission intensity metrics such as emissions per tonne nautical mile and well-to-wake carbon intensity. Companies operating in maritime sector must measure whole operational and value chain GHG emissions including the following:

Scope 1: Direct emissions from vessels due to fuel combustion

Scope 2: Purchased electricity (ports, facilities)

Scope 3: Supply chain emissions from fuel production to logistics operations.

Key Decarbonization Pathways for Achieving Maritime sustainability

Alternative Low-Carbon Marine Fuels

Alternative low-carbon marine fuels are emerging as substitutes for conventional fuels such as heavy fuel oil and marine diesel. These include Liquefied Natural Gas (LNG), ammonia, hydrogen, methanol, and advanced biofuels, and each of these fuels has distinct benefits and challenges (DNV, 2023). CMA CGM has deployed large methanol-powered container ships as part of its strategy to transition toward low-carbon fuels and sustainability.

Vessel Efficiency

Decarbonization goals for the maritime sector are also dependent on vessel efficiency and design improvements. Sustainable technologies such as advanced hull coatings, energy-efficiency technologies like fins and ducts and optimized propeller designs have the capacity to reduce fuel consumption by up to 10-15% (MAN Energy Solutions, 2021) and hence can be gradually deployed. In 2020, Rolls Royce evaluated another advanced technique where innovative hull forms were assessed to improve overall hydrodynamics.

Digital Optimization

AI-powered route optimization and predictive maintenance are also being explored as they can reduce fuel use and GHG emissions by 5-10% depending on operating conditions (Smart Maritime Network, 2022). Companies like Wärtsilä provide integrated digital solutions enabling these efficiencies through data-driven optimization (Wärtsilä, 2021).

Emerging Maritime Technologies

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Innovations including lithium-ion battery storage and autonomous vessels are being looked at as solutions to the GHG emissions problem of the shipping industry and to ensure maritime sector sustainability. For instance, Yara Birkeland is recognized as the world’s first fully electric and autonomous container ship, showing potential for zero emissions maritime transport (Yara, 2021).

Ports and Shore Infrastructure Decarbonization

To ensure GHG emission reductions at the local scale, port electrification and shore power infrastructure modifications are looked at as viable options. The Port of Los Angeles aims to cut emissions by 40% by 2030 and 80% by 2050 through shore power and renewable supply investments (Port of Los Angeles, 2020). EU-funded research and innovation initiatives are supporting the development of carbon capture technologies, including emerging applications for shipping, to reduce GHG emissions from hard to abate sectors (European Commission, 2022).

These technologies have a significant impact on the path to decarbonization of the maritime sector. While not available on a commercial scale, these can be drivers for future decarbonization of the maritime sector. Another area where the appropriate modifications are on is the wind propulsion system. To minimize fuel consumption, wind propulsion systems such as rotor sails have been promoted which has reduced fuel consumption by 5-20% in trials (Norsepower, 2021; MDPI, 2023).

The MV Afros is powered partially by sails and exemplifies hybrid approaches to reduce emissions (NEOLINE, 2022). Green logistics hubs like the Port of Rotterdam provide bunkering for alternative fuels along with an integration with multimodal transport to facilitate the green transition. (Port of Rotterdam Authority, 2021).

Investors and Green Financing

Sustainable finance instruments such as green bonds fund projects are aligned with decarbonization. For example, The Poseidon Principles help link finance to shipping emissions reduction (Poseidon Principles, 2020).

Green Shipping Corridors

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The Clydebank Declaration supports establishing green corridors that combine supportive infrastructure and regulatory frameworks to accelerate low-carbon shipping in designated trade routes (Global Maritime Forum, 2021).

Conclusion

The maritime sector’s GHG emissions, primarily from large containers and bulk ships, represent a climate challenge equivalent to a major industrialized nation and immediate action and intervention through financial, technological, and legal intervention is needed. However, increasing regulatory and technological efforts, including international agreements to reduce fuel emissions and transition to low and zero carbon fuels, highlight that the maritime sector can be steered toward a net-zero future by around 2050. With required efforts in terms of coordinated global policy, innovation in alternative fuels and propulsion systems, and robust investment to align shipping with broader climate goals, decarbonization of maritime sector will still be a complex task with collaboration between governments, industries, and financial sectors. Technological innovation and regulatory frameworks must evolve together to meet climate targets (UNFCCC, 2022).

Why Choose InCorp Global?

Consultation with experts helps shipping companies navigate technical, regulatory, and financial challenges in the transition, accelerating innovation adoption and compliance. At InCorp Global, sectoral experts provide end-to-end technical support and help companies in preparing tailored and detailed decarbonization roadmap along with strategies, gap identification and ensure alignment with key regulatory frameworks. If you have any questions or require assistance regarding our process, please write to us at info@incorpadvisory.in or reach out to us at (+91) 77380 66622.

Source:

  1. Fourth Greenhouse Gas Study 2020
  2. Maritime Shipping
  3. Analysing recent trends and drivers of maritime transport CO₂ emissions
  4. 2018 Initial IMO Strategy
  5. Fit for 55: Delivering on the proposals

Authored by:
Shreyash Khadse | ESG and Sustainability

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