A 2023 World Economic Forum report states that international aviation and shipping contributed about 2% each of global greenhouse gas (GHG) last year.
While that figure may seem minor compared to the 15% from the oil and gas sector, their scale should allow them to achieve green standards more quickly.
To achieve net-zero emissions by 2050, the aviation industry is adopting sustainable aviation fuel (SAF), a plant-or animal-based alternative to fossil-based jet fuel. Test flights with biofuels began as early as 2008 and less than a decade later, at the 73rd International Air Transport Association (IATA) AGM in Cancun, Mexico, members unanimously agreed on a resolution to deploy SAF.
However, the shipping industry’s path has been less straightforward. The International Maritime Organization (IMO) first addressed reducing energy emissions in 2011. Since then, only one strategic objective has been achieved: the 2023 IMO Strategy on reducing ship GHG emissions, which provides guiding principles for member states to adopt.
The next objective is set for 2030, when the IMO aims for a 40% reduction in CO2 per transport work, a 5% uptake in zero-emission fuels with a target of 10% and a 20% reduction in total annual emissions, with
an aspirational goal of 30%.
Alternative fuels are a clear solution, but progress is ongoing. Unlike IATA, the IMO cannot provide a one-size-fits-all solution for its members. Instead, the framework relies on comprehensive assessments and technical and operational requirements.
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Speaking at a fireside chat in Singapore on April 19, IMO Secretary-General Arsenio Dominguez says the IMO is “on track” with the impact assessment of the framework on trade, fleets and states.
“It is required for us to see the impact of the combinations of the measures; we are analysing 20 different scenarios for the proposals we have on the table, which takes time. It’s quite an intricate analysis, where consultants go through a thorough procurement process,” he adds.
Digitalisation can improve the efficiency of vessels and ports, which is important for the industry. However, adopting renewable fuels remains the priority.
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“Several manufacturers developing fuel types and agents are ready to take on new renewable fuels that are being developed from methanol, ammonia, biofuels [and] hydrogen-derived fuels,” says Dominguez.
“But the word right now is ‘transition’ because we don’t have all the answers right now and we are taking the first steps to adopt the measures we have in mind.”
Green methanol and nuclear power
In September 2023, the Laura Maersk, the world’s first methanol-enabled container vessel, debuted. According to Danish shipping giant Maersk, methanol can reduce greenhouse gas emissions by about 65%, potentially saving up to 100 tonnes of CO2 daily compared to conventional fuel.
Methanol has emerged as a leading candidate for replacing fuel at sea; the organic chemical is widely used in plastics, construction materials and automotive parts industries.
Green methanol is even more promising. This renewable version combines captured CO2 with hydrogen from green sources like wind or solar power. It also remains liquid at room temperature, enhancing storage and transport convenience.
So, why hasn’t the industry witnessed large-scale implementation of green methanol, or at least a consensus similar to the aviation industry’s adoption of SAF? The answer lies in price and availability. According to a 2023 report by German energy giant Man Energy Solutions, green methanol can be nearly twice as expensive as conventional fuels while providing only half the energy content.
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This necessitates more frequent refuelling or larger fuel storage capacities for vessels.
This presents a dilemma for the industry.
Shipping is presently efficient as vessels can carry around 22,000 containers at once.
An even more significant question about fuel substitutes arises from the potential of nuclear-powered vessels. Despite successful military applications, nuclear-powered shipping vessels remain extremely rare.
Dominguez says: “It may happen in the future, but the technology needs to develop further, so the short answer is ‘No’. It’s not stable and we haven’t discussed nuclear power. Technology does develop very quickly, so we’ll see what happens in the future.”
Until technology and infrastructure can align with the ambitious goals of the IMO, progress towards meeting its 2030 targets appears gradual.
Green shipping corridors
However, the industry is not at a standstill.
Green shipping corridors — routes between ports where zero-emission shipping solutions are implemented and monitored —have successfully aligned stakeholders and goals.
Each corridor can be customised to meet diverse needs, involving different vessels, fuel types and technologies.
From 2022 to 2023, the number of green shipping corridor initiatives announced doubled from 22 to 44. As of February, 57 initiatives have been recorded. While most of these are still in the early planning stage, successful trails have painted a hopeful picture for the way forward.
One such example is the Singapore-Rotterdam Green and Digital Shipping Corridor (GDSC), established by the Maritime and Port Authority of Singapore (MPA) and the Port of Rotterdam Authority (PoR).
Established in August 2022, this initiative has successfully united 26 global value-chain partners, including shipping companies, ports, banks and fuel suppliers.
Several pilot projects are planned for this year and beyond to test the accelerated adoption of zero- and near-zero-emission fuels.
Already on the digital front, both ports have successfully trialled the exchange of port-to-port data.
They can now share vessel arrival and departure times, streamlining port planning and optimising voyages and port calls between Singapore and Rotterdam.
Dominguez adds: “We understand that decarbonisation is a combined effort; it’s not just about shipping; it’s for so many new fields within the energy sector. In shipping, we need the port authority sources to publish the same reports as the energy sectors because we don’t regulate ports. We have an intricate relationship between stakeholders, which we’re working on now.”
