IMO Secretary-General Arsenio Dominguez highlighted the need for the global shipping industry to invest heavily in technology and alternative fuels to achieve a net-zero transformation and drive industry-wide change at the Blue Economy Finance Forum in Monaco.
The global shipping industry is gearing up for a net-zero emissions transformation that will impact the entire sector, from supply chains and business models to ships, ports, and the maritime workforce.
In April, the IMO approved new regulations for zero-carbon ship fuels and emissions, which are expected to be adopted in October. Calls to invest in decarbonization are growing louder.
“Regulations alone are not enough. We need technological development and alternative fuels… And this can only be achieved in one way: with investment,” said Mr. Dominguez at the Blue Economy Finance Forum in Monaco on Sunday.
This includes investing in increasing the production of alternative fuel in sufficient quantities to replace the 350 million tonnes of fuel oil currently burned by ships each year.
Modernization of port infrastructure and bunkering operations will also be necessary to safely provide clean energy to ships as they call at ports around the world.
“This is a complete transformation of the shipping industry. It will take ecosystems to do it together,” said Christine Cabau-Woehrel, Executive Vice President of shipping and logistics company CMA CGM, at the same event. “The journey will be long and difficult, but we want to be at the forefront.”
The first movers are already doing so. According to the World Shipping Council, at least 200 liner vessels (container ships) already in service can run on zero- or near-zero-emission fuels, while nearly 80% of all new orders for container ships and vehicle carriers will have the same hybrid capability.
“The liner industry has already invested $150 billion in decarbonization. This is unprecedented for the transportation sector,” said Joe Kramek, President of the World Shipping Council. “But we need the fuel supply… this is a tremendous investment opportunity.”
The new set of rules, known as the IMO Net Zero Framework, takes a two-pronged approach: a global fuel standard that limits the greenhouse gas (GHG) intensity of marine fuels, and a price set for GHG emissions from ships.
The regulation sends a clear demand signal to fuel producers, while rewarding “first movers”—shipping companies that take the risk of quickly adopting low- or zero-emission solutions and are then able to share their experience and expertise with others.
The IMO Net Zero Emissions Framework complements previous IMO measures to strengthen energy-efficient ship design, operational improvements, and carbon intensity assessment. These measures will be reviewed every five years, and emission limits will be tightened over time.
Mr. Dominguez stressed that these regulations are mandatory and must be applied to all ocean-going vessels carrying out international operations, regardless of their flag.
There will be an impact on training, with nearly half a million seafarers requiring refresher training by 2030, and safety measures will need to be comprehensively updated to ensure fuels are deployed safely and effectively.
Mr. Dominguez urged the international community to focus on concrete actions and the implementation of the various global commitments already made.
(Image from IMO)