ALL HANDS ON DECK Decarbonising Shipping: Industry Perspectives - Safety4Sea
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Decarbonising
Shipping:
ALL HANDS
ON DECK
Industry Perspectives
www.shell.com/DecarbonisingShipping
#MakeTheFuture
In c ollabora t ion w it h
CONTENTS
5 Foreword 51 A New Paradigm:
Solutions for
7 Introduction Decarbonising
11 Executive summary Signals of Change
17 Where We Are Today Principles
The Drive to Decarbonise Solutions
GHG Emissions in Shipping Unlock
27 The Deadlock: Barriers 1. Scale-up Customer Demand
to Decarbonisation 2. Global Regulatory Alignment
3. Cross-sector Research & Development
Decarbonisation Readiness
4. Scale-up Controlled Pilot Projects
Factors
5. Coordinated Industry Commitments
Market and Customer Demand
Accelerate
Regulatory Incentives 6. Flexible and Modular Designs
7. Port Coalitions
Technology Alignment
8. Investor Pressure
Clarity on Roles and Decision‑ 9. Green Finance
Making
Scale
Ease of Asset Replacement 10. Scale-up Fuel Production
11. Scale-up Bunkering Infrastructure
Ease of Infrastructure
Replacement Foundation
12. Operational Efficiency
73 The Roadmap:
Accelerating
Decarbonisation
Motivation and Immediate
Focus
Let’s Get Moving
Lead and Support Roles
89 Credits
FOREWORD
The world today is going through extraordinary change. For the energy
industry, there are great challenges, from the longer-term effects of climate
change to the immediate shock and uncertainty of the global pandemic. But
if there are risks, there are opportunities too – as long as industries work with
wider society to take urgent action.
Huibert Vigeveno
Downstream Director
The shipping sector is vital to the global Based on more than 80 interviews across the As an operator of a large fleet of tankers and a
economy and never more so than in recent industry, from CEOs to financiers and ship supplier of marine fuels, lubricants and services,
months, when it kept up the supply of essential builders, the report identifies practical measures Shell has a stake in the future of shipping. We
goods. It accounts for about 80% of the volume to cut carbon emissions. It asks questions such have announced our own ambition to be a
of global trade. If the world is to achieve the as: what role will the world’s major ports play? net-zero emissions energy business by 2050 or
goals of the Paris Agreement to tackle climate How do you adapt assets with a 20-year sooner, in step with society, and our shipping
change, it is crucial that sectors such as shipping lifespan? How do you transform a sector so operations must be part of this. We continue to
cut their carbon emissions and do so fast. dependent on heavy fuels? The answers are work with our customers on alternate fuels such
pragmatic, they show a will to work together as biofuels, liquefied natural gas and hydrogen.
The International Maritime Organization has set and they are optimistic.
the ambition of reducing the shipping industry’s As the head of Downstream, which is
greenhouse-gas emissions by at least 50% by The report identifies 12 possible solutions. responsible for shipping, I am buoyed by the
2050, and reducing the carbon intensity of Operational efficiency is crucial, while others optimism of this report and I relish the prospect
emissions by 40% by 2030 and 70% by 2050, include co-ordinating industry commitments, of working with customers, partners, suppliers
compared to 2008 levels. The scale of the increasing research and development across and wider society to achieve lasting change.
challenge means that any solution needs to sectors, and expanding the infrastructure to
be comprehensive and involve every aspect of supply and store cleaner fuels.
shipping. As well as cleaner fuels, it should focus
on factors such as regulation, government action
and societal shifts. No sector can do this alone.
This report is driven both by urgency and the
need for collaboration.
5 DECARBONISING SHIPPING : ALL HANDS ON DECK DECARBONISING SHIPPING : ALL HANDS ON DECK 6
INTRODUCTION
Shipping has a dual challenge. It must meet the demand of the world’s
growing population, with more ships and more voyages, while radically
reducing its emissions. Achieving both will require a transformation, but there
are lessons we can take from experiences in the industry to help us.
In Shell Shipping & Maritime, a key focus I have been extraordinarily encouraged What is evident is that, despite the complexity,
area has been on improving safety across the by the response. Despite being conducted the industry sees that viable net-zero carbon
industry. The aim is a zero-incident industry between January and June 2020, a period that shipping is achievable. It cannot be just one
where every seafarer returns home safely. This coincided with the COVID-19 pandemic across company or sector, but with all hands on deck,
has not been easy and there is more work to the world, leaders were keen to participate we can make it happen together.
do, but huge progress has been made. and were engaged in their responses. This is a
testament to the industry’s commitment to tackle
To improve shipping’s safety performance, the the challenge, and I would like to thank them all
industry had to first work together to understand for their time and contributions.
the problem; what are the underlying factors
that prevent us being safer? And then, armed With this research, the industry has given its
with that information, take collective action. view, and now we must all get to work to move
from deadlock to decarbonisation. At Shell,
Our objective with this report is to do the same we will continue working with our customers
for decarbonisation; we want to catalyse action as they adopt new fuels and technologies that
by creating a common understanding of barriers help them reduce emissions. We will develop
the industry faces and the solutions that will be the business case for investment in solutions
most effective. which reduce emissions today as quickly as
possible, and we will continue to collaborate
and contribute in research which accelerates
progress to zero emission fuels.
Grahaeme Henderson
Vice President
Shipping & Maritime
7 DECARBONISING SHIPPING : ALL HANDS ON DECK DECARBONISING SHIPPING : ALL HANDS ON DECK 8
Report Objectives it is essential to collect, understand and
build on their views as we seek to identify
This research reflects the perspectives of 82 solutions that drive progress.
senior shipping leaders that represent almost all
segments of the shipping industry (see Exhibit 1). Clarify a Practical Way Forward:
It was developed with the following objectives: Shipping leaders who participated in this
research looked beyond the challenges of
Take a Comprehensive View: Most today to explore the solutions of tomorrow.
existing shipping decarbonisation studies Together they converged on a set of
focus on specific challenges in isolation, actions and a roadmap that can help
such as potential future fuels. Given the overcome the inertia that many see in the
scale of the decarbonisation challenge, sector.
a more thorough framing is needed that
also includes economic, regulatory and The primary motive of publishing this research is
organisational factors. to highlight those insights shared with us through
interviews, workshops and desk research; not
Reflect the Voice of the Industry: the views of Shell or Deloitte. All engagements
Ultimately, those within the industry will with participants were conducted in a manner
together play the most instrumental role that respects competition law boundaries.
in decarbonising shipping. Accordingly,
01 Research Participants
82 shipping leaders in 74 interviews and 10 hours of collaborative workshops (30 participants)
33 CEOs 32 Vice Presidents, Unit Heads and 17 General Managers,
Directors Managers and Specialists
4 of top 10 4 of top 10 3 of top 5 cruise 3 of top 5 ship 2 of top 5 8 ports, incl. 1 of
bulk and tanker container financiers shipbuilders top 10
52 Europe, Middle East & Africa 13 North & South America 17 Asia & Pacific
32 Ship owner 15 Charterers 8 Port authorities 10 Technology 11 Regulators, 6 Financiers and
and operators and shipping and operators providers and ship classification investors
customers builders societies and
academia
Note: Regions indicate organisations’ headquarters. Most organisations involved operate globally
9 DECARBONISING SHIPPING : ALL HANDS ON DECK DECARBONISING SHIPPING : ALL HANDS ON DECK 10
EXECUTIVE SUMMARY
Shipping is the backbone of the global Growing pressure to reduce carbon emissions
economy. It is by far the most efficient mode of across the global economy has opened new
freight transport1 and moves approximately 80% opportunities. The industry has already started
of world trade volumes2. Simply put, the scale of uniting, forming coalitions, launching pilot
global development seen over the last century projects and exploring new ways to lower
would not have been possible without shipping shipping emissions. A new paradigm is emerging
playing a key role. However, as the global and there is an opportunity to accelerate
economy grows, so too will carbon emissions change through a set of manageable, practical
from shipping. solutions that will break the deadlock and
unlock progress. Making this happen requires
The shipping industry recognises the importance collaboration within the shipping industry itself,
of decarbonising to help reach the goals across the broader shipping ecosystem and with
of the Paris Agreement, and it has already other sectors. but for deep-sea shipping – which accounts for it, many shipping leaders believe that the first
started to mobilise. The International Maritime around 85% of emissions5 – there is currently no net-zero ships will need to start entering the
Organization (IMO) has announced an The Deadlock viable alternative fuel that makes it possible to global fleet by around 2030 – and that creates
ambition to at least halve international shipping reach the IMO’s 2050 ambition. The industry a real sense of urgency.
greenhouse gas (GHG) emissions by 2050, Shipping is a capital-intensive industry is currently exploring several alternative fuels –
while reducing CO₂ emissions intensity by characterised by large, long-life assets, including hydrogen, ammonia, methanol and “2030 is tomorrow, 2050 is
at least 40% by 2030, and pursuing efforts
towards 70% by 2050, relative to a 2008
thin margins and a high-dependence on a
global supply of energy-dense fuels. These
biofuels – but shipping leaders say that they
all have commercial and technical limitations.
one ship lifetime away”
Shipping Technology Provider
baseline3. These ambitions send a signal to the characteristics make decarbonisation complex Costs are significantly higher than today’s
industry that change is coming, and all parties and expensive, with one study estimating dominant shipping fuel and most potential A New Paradigm
involved need to prepare. the total cost at $1.65 trillion by 20504. alternatives have lower energy density,
Consequently, decarbonising the industry needs extensive storage and safety requirements and Perspectives regarding decarbonisation are
Conversations with over 80 leaders across sufficient regulatory and market incentives and limited infrastructure. New technologies such evolving and opening opportunities that were
the shipping industry highlight the daunting an abundant supply of low or zero-emission as propulsion systems and storage tanks need not available a few years ago. Social pressure
challenge of shipping decarbonisation. It fuels. to be developed to resolve these barriers and to reduce emissions is intensifying. Governments,
will be difficult, and shipping leaders feel enough fuel production capacity is needed to investors and businesses are making
that uncertainty about where to begin has “Too many alternatives and meet the 3.3 petawatt hours (12 exajoules6) commitments and starting to act. Notably,
created what one interviewee described as a
“deadlock”. At the same time, many of those
not one viable solution” annual energy demand from shipping. To put
that figure in perspective, energy required to
extensive levels of sustainable investments are
included in stimulus packages announced in
Shipping Operator
interviewed have a positive outlook. As one power shipping for one year would be enough relation to the COVID-19 global pandemic8.
CEO stated, “decarbonisation is one of the The lack of a global regulatory framework and to power New York City for over 60 years7. Technologies are continually evolving and
biggest challenges we face as an industry. limited customer demand for lower-emission creating new potential avenues to lower
However, we have never been more united shipping are significant barriers to activate much This is the “deadlock”. However, there is a emissions. As one CEO told us, “the situation is
around a problem, and there is optimism that needed industry investment. Electric vessels may growing view that now is the time to act if the not all doom and gloom.”
we can make it happen.” be an option for inland and short-sea routes, industry is to meet the IMO’s ambition. To reach
11 DECARBONISING SHIPPING : ALL HANDS ON DECK DECARBONISING SHIPPING : ALL HANDS ON DECK 12
The leaders of the shipping industry “Real commitment from (R&D) across shipping, other harder-to- production and bunkering infrastructure.
acknowledge this new paradigm. Over
90% of interviewees involved in this research
customers would go a long abate sectors and the energy industry.
Create a much larger pool of capital and
Finally, operational efficiency must remain the
“foundation” of all these phases and is crucial
highlighted decarbonisation as important or way to unlock investment” expertise to evolve new technologies and to reducing emissions of both existing and
a top priority for their organisations, noting its Shipping Owner & Operator increase the likelihood that production future vessels. Energy efficient technologies,
importance has increased significantly over the and transportation infrastructure will such as hull streamlining, air lubrication, wind
past 18 months. This sentiment reflects increasing Based on these three principles, this report be available once future fuels are technology, weather routing, port optimisation,
action as new coalitions and pilot projects focuses on 12 solutions, or recommendations for commercially viable. and high quality fuels and lubricants are some
have been established to address barriers to action, that emerged from research, interviews of the measures the industry can implement
decarbonisation. Even with the impacts of the and workshops. These solutions streamline 4. Scale-up Controlled Pilot Projects: immediately and throughout the decarbonisation
COVID-19 pandemic in the first half of 2020, what some view as an insurmountable problem Increase R&D effectiveness by running journey.
almost all shipping leaders that we interviewed into several manageable phases that address end-to-end green pilot projects involving
saw the resulting economic disruption as an specific barriers and enable the industry to have customers, charterers, operators, “We can build rockets that
opportunity to accelerate progress. the first net-zero ships in the water by around
2030. The first five solutions aim to “unlock”
owners and ports on specific routes and
vessel types. Operators that follow a
come back from the moon
“The discussion has finally progress in the next two to three years. predetermined schedule, such as container but not make ships green?
become serious” ships especially on shorter and busier No way. We can do it”
1. Scale-up Customer Demand: routes, are likely candidates for pilot
Shipping Owner Shipping Owner & Operator CEO
Create scale in demand for low or zero- projects.
Most shipping leaders believe that a novel emission shipping through charterers’ The Roadmap
decarbonisation approach is needed and and customers’ commitments that include 5. Coordinated Industry
should be based on three main principles: long-term contracts and green procurement Commitments: Increase the reach The opportunity for the industry to break the
criteria. Natural candidates to lead this of existing initiatives – such as the deadlock is clear, and there is little time to lose
Adopt an ecosystem perspective solution are state-owned and publicly listed Getting to Zero Coalition, the Clean if it is to meet the IMO 2050 ambition. The
Think big, start small, scale fast companies with proximity to end consumers Cargo Working Group and others – by solutions outlined in this report offer a roadmap
Focus on behaviours and triggers (e.g. containers, food bulk), and others consolidating objectives and strengthening to build on progress already happening
with ambitious scope 2 and 3 net carbon the coordination of various concurrent within the sector and to drive further change.
The first, “adopt an ecosystem perspective” footprint commitments9. workstreams. A body with a specific Momentum is building, and there is a sense of
recognises that the challenge is too large for mandate, formed with dues from the optimism that it can be done. Those who take
any one organisation alone. It calls for a holistic 2. Global Regulatory Alignment: industry, could accelerate the shift from the lead are in a better position to influence the
and integrated perspective, with each industry Create a level playing field globally and ideas to action and help break the outcomes, but every operator and stakeholder
stakeholder having a role to play and a set of reduce uncertainty regarding regulations deadlock. in the industry has a role to play. As one CEO
activities to focus on. The second, “think big, and timeframes. New IMO guidelines due said, it’s “all hands on deck.”
start small, scale fast,” is based on the premise in 2023 should provide clarity and should These five solutions make up the first phase of
that small, incremental steps are the best way to be aligned with leading local and regional the decarbonisation roadmap (see Exhibit 02).
solve a challenge of such magnitude. The third regulatory bodies (eg. EU, China and US). The industry will then need to “accelerate”
principle, “focus on behaviours and triggers,” Short-term regulatory incentives should also progress by further de-risking early investments
underscores the importance of supporting be considered. through flexible ship design, new port coalitions,
solutions with the right incentives. Incentives greater investor pressure and new financing
should be based on an understanding of what 3. Cross-sector Research and schemes that encourage low-carbon shipping.
will motivate stakeholders across the value chain Development: Intensify partnerships Next, the reduced risk and expanded incentives
to take a long-term perspective. to develop zero or low-emission fuels resulting from previous phases will help attract
through joint research and development the investment needed to “scale” green fuel
13 DECARBONISING SHIPPING : ALL HANDS ON DECK DECARBONISING SHIPPING : ALL HANDS ON DECK 14
02 Roadmap to 2030
Scale
10. Scale-up Fuel Production
11. Scale-up Bunkering Infrastructure
In parallel with the Unlock solutions, key
enabling activities for Accelerate and Accelerate
Scale phase to start
6. Flexible and Modular Designs
7. Port Coalitions
8. Investor Pressure
9. Green Finance
Unlock
1. Scale-up Customer Demand
2. Global Regulatory Alignment
Progressing solutions from Unlock and
3. Cross-sector Research and Development Accelerate phases will help create the
focus and conditions required to have the first
4. Scale-up Controlled Pilot Projects net-zero vessels in the water by 2030 and
meet the 2050 IMO ambition
5. Coordinated Industry Commitments
Foundation
12. Operational Efficiency
2023: Expected IMO regulation 2030: The first net-zero vessels start
entering the commercial fleet
Short Term Medium Term Long Term
(2020 – 2023) (2023 – 2030) (2030+)
15 DECARBONISING SHIPPING : ALL HANDS ON DECK DECARBONISING SHIPPING : ALL HANDS ON DECK 16
Where We Are Today
Where we are: The shipping industry the IMO is expected to follow up with more
THE DRIVE TO
has set an ambition to halve specific measures by 2023. The IMO is the first
international shipping GHG emissions regulatory body to adopt a global ambition for
by 2050. an entire industry, which is of critical importance
DECARBONISE
given the role of shipping in the global
In 2018, the IMO announced the initial strategy economy.
to reduce GHG emissions (see Exhibit 04).
The strategy outlines an ambition to at least
halve international shipping GHG emissions
by 2050, while reducing CO₂ emissions
The 2015 Paris Agreement defined a bold ambition to limit global warming intensity by at least 40% by 2030, and pursuing
to well below 2°C and pursue efforts to limit it to 1.5°C. In response, many efforts towards 70% by 2050, relative to a
countries, industries and individual organisations have set targets to limit their 2008 baseline.11 While this is not binding,
carbon emissions and started developing plans on how to reach them.
There is no shortage of positive signs, but 03 Global CO₂ Emissions by Sector¹ 04 IMO Timetable to Reduce GHG Emissions¹
the international community can do more
to address climate change. As the United
Nations Environment Program notes, “on current
Initial IMO Revised IMO Reduction of Reduction of
unconditional pledges, the world is heading Σ 30 %
Strategy on Strategy CO₂ emissions CO₂ emissions
Harder-to-abate
for a 3.2°C temperature rise.”10 It is clear that sectors
reduction of GHG (incl. mid term per transport per transport
emissions measures work by at least work by 70%
a more focused, industry-specific and action- Ambitions set 2023‑2030) 40%, from 2008
oriented approach is required to facilitate and 70,0% 2.7% baseline 50% reduction
accelerate decarbonisation efforts. Other¹ Shipping Chemicals of total GHG
emissions from
2008 baseline
The challenge is particularly pronounced in six Aviation
harder-to-abate sectors that, according to the 2018 2019 2023 20252025 2030 2050
Cement
International Energy Agency, currently account
for around 30% of global CO₂ emissions (see Iron and steel Impact
Exhibit 03). These industries share common assessment
characteristics, such as long asset lifespans, Resolution
Road freight
on ports and
high energy dependency, and complexity shipping
of electrification. Decarbonisation of these cooperation EEDI phase 3:
GHG Technical 30% reduction in
industries will, therefore, be slower, more
cooperation Trust carbon intensity
investment-intensive and a more technically Fund established takes effect
demanding endeavour compared to other
industries. As other industries decarbonise more
rapidly, pressure and focus on harder-to-abate Past dates
Source: IEA Energy Technology Perspectives 2017; IEA 2014 baseline value
assumptions; Deloitte analysis. Notes: 1) Other includes feedstock, buildings,
industries is expected to increase. light transport Source: IMO. Notes: 1) Selection of activities – not comprehensive Future dates
19 DECARBONISING SHIPPING : ALL HANDS ON DECK DECARBONISING SHIPPING : ALL HANDS ON DECK 2005 Shipping Volume, Emissions and GDP Growth
GHG EMISSIONS 225
IN SHIPPING
Shipping volume¹
+ 93%
200
175 World GDP²
+65%
150
Shipping emissions³
Where we are: Shipping is critical to Where we are: Shipping is the
+39%
the global economy and accounts for most efficient means of transport 125
around 2.7% of global emissions. and continues to make efficiency
Index, year 2000 = 100
improvements as volume grows. 100
In the words of one interviewee, shipping is the
“backbone of the global economy,” allowing Due to the colossal size of ships and the
the world to trade more goods over greater continual drive for efficiency, shipping is by far 2000 2003 2006 2009 2012 2015 2018
distances than any other mode of transport. It the least emissions-intensive mode of transport
has historically grown in lockstep with economic (see Exhibit 06). A large vessel emits 1% of Source: UNCTAD; World Bank; IEA; Deloitte analysis
Notes: 1) Shipping volume indicates ton-miles (how many tons of cargo were shipped over how many miles);
activity. For instance, between 2000 and 2018, the CO₂ per ton-km that is emitted by a plane 2) World GDP in constant 2010 $, to eliminate effect of inflation; 3) International shipping shown, accounting for over 80% of global shipping
global GDP increased by approximately 65% and 14% of the CO₂ emitted by the next most
while international shipping volumes increased efficient transport alternative – a cargo train.16
by 93% over the same period (see Exhibit 05).12 06 Emissions by Mode of Transport
The shipping industry continues to improve g CO₂/ton-km1, 2, 3
The industry currently accounts for around 2.7% its efficiency. Over the last two decades,
435
of global CO₂ emissions, but emissions are shipping volumes have increased by 101% while
geographically concentrated across East-West emissions only grew by 40% over the same time
trade routes and a relatively small set of vessel frame. This is due to increased scale, technical A large vessel emits 1% of CO₂
types.13 Bulk carriers, oil tankers and container innovation and far-reaching operational per ton-km of a plane (5/435) and
ships account for around 85% of all shipping improvements. 14% of a cargo train (5/35)
activity (see Exhibit 07),14 while around 45% of
international maritime trade passes through the For instance, today’s largest container vessels
20 largest global ports.15 can carry around 22,000 containers, compared
with a maximum of around 1,000 containers in
Interviewees believe this concentration of the early 1970s. Ship sizes have doubled over 80
emissions from specific uses and on specific the past decade alone, reducing their carbon 35
routes creates an opportunity. An operator from intensity and also reducing the average shipping 5
Asia-Pacific region said, “it allows us to focus our cost per container by roughly a third.17 Air Road Rail Shipping
efforts on a small number of vessels and ports
for the greatest impact.”
Source: IMO GHG study 2009. Notes: 1) Energy-efficient transport is much dependent on the load factor, vehicle efficiency and cargo type; heavier cargo and larger vehicles will
improve the cargo/vehicle weight ratio, resulting in better CO₂/ton-km values; 2) Air = Boeing 747, Road = Truck > 40 ton, Rail = 3-4 hp / short-ton, Shipping = Average of very
large container vessel (3 gCO₂/ton-km), oil tanker (6), bulk carrier (8); 3) Estimations assuming current energy mix
21 DECARBONISING SHIPPING : ALL HANDS ON DECK DECARBONISING SHIPPING : ALL HANDS ON DECK 2207 Global Shipping Fleet¹
~85%
of total emissions
Bulk Carriers General Cargo³ Gas Carriers
Σ~51.7k Σ~1,962 Σ~930
11.3 842 ~440 11.2 84 ~40 1.7 69 ~30
vessels DWT² MtCO₂
k M DWT Mt CO₂ k M DWT Mt CO₂ k M DWT Mt CO₂
Source: UNCTAD; IMO; IEA; Deloitte analysis
Notes:
1) Ships of >1,000 gross tons, representing 99% of global tonnage;
2) DWT = Dead Weight Tonnage, an indicator of capacity;
3) General cargo includes multipurpose transport and other unclassified vessels;
4) Large ferries included. There is another ~8k+ of ferries < 1,000 gross tons
Oil Tankers Offshore Vessels Chemical Tankers
10.8 568 ~210 7.0 80 ~30 3.4 46 ~20
k M DWT Mt CO₂ k M DWT Mt CO₂ k M DWT Mt CO₂
Container Ships Cruise Ships / Ferries⁴
5.3 266 ~140 1.0 7 ~20
k M DWT Mt CO₂ k M DWT Mt CO₂
23 DECARBONISING SHIPPING : ALL HANDS ON DECK DECARBONISING SHIPPING : ALL HANDS ON DECK 24The industry has also become more production efficiency and reduce the benefits of
efficient through operational and technical having factories in distant, lower-cost locations.
improvements. Between 1976 and 2008, the This could lead to a reduction in subcontractor
carbon efficiency per weight-distance of some layers and bring production closer to end
vessels improved by 75%.18 Interviewees believe markets, resulting in lower demand for shipping
an additional 10 to 20% reduction in emissions services. Shifting consumer preferences and
can be achieved with technical innovations and trade protectionism may also have a similar
digitalisation opportunities such as just-in-time negative impact on shipping volumes.
arrivals, to cut the time that ships spend waiting
outside ports. The impact of the COVID-19 pandemic
significantly reduced shipping volumes. By April
Efficiency improvements are a central way to 2020, up to 60% of China’s shipping capacity
meet the IMO’s 2030 ambition, but the industry in Asia-Europe routes was idle.19 While the
will require a more fundamental shift in fuel as impact has been acute, interviewees believe it
shipping volumes continue to grow. will be a relatively short-term disruption and the
industry will show signs of recovery by 2021.20
Where we are: The growth in shipping
volumes will increase pressure to While these demand-side factors may
accelerate decarbonisation. individually decrease demand for shipping,
interview participants do not believe they will
Interviewees say that several trends in demand fully offset growth in demand. Trade volumes
will influence shipping volumes and emissions in and, in turn, shipping emissions are expected to
the coming years (see Exhibit 08). For instance, continue to grow, increasing the importance of
automation and 3D printing could improve addressing barriers to decarbonisation.
08 Trends in Shipping Demand
Impact on global
Trend
shipping demand
Global economic growth
(particularly from developing regions)
More agile supply chains and nearshoring, enabled for example through
production automation and 3D printing
Trade protectionism and trade barriers
Shifting consumer behaviour, for example circular economy, more conscious
purchasing
Short term: Trade growth post-COVID 19
NET IMPACT
Note: Trends identified are not exhaustive nor conclusive Colour indicates estimated magnitude of impact
LOW HIGH
25 DECARBONISING SHIPPING : ALL HANDS ON DECK DECARBONISING SHIPPING : ALL HANDS ON DECK 26The Deadlock: Barriers to Decarbonisation
Based on responses from industry executives, the
DECARBONISATION
shipping sector scores on the low side in terms
of its readiness to decarbonise, especially when
compared with some other transport sectors
READINESS FACTORS
(see Exhibit 09).
The following sections focus on these six factors
in greater detail.
A systematic approach to assess the industry’s readiness to decarbonise was
developed in collaboration with industry leaders by focusing on three core
questions. Then, based on a wide range of responses, we converged on six
decarbonisation readiness factors for the sector. We further refined these
in workshops with industry leaders from across the globe. These factors are
described in detail below.
Why should the sector change? i.e. what 4. Clarity on Roles and
might trigger industry stakeholders to act: Decision-Making: The ease in
making decisions, clarity on the roles and
1. Market and Customer Demand: responsibilities of key groups in the industry,
Pressure and incentives from society, and whether their priorities are aligned.
customers, financiers and investors which
create motivation for ship owners and How fast can the sector change?
operators to change. i.e. what effort is required to implement change
at scale:
2. Regulatory Incentives: Instruments
applied by global regulators and regional 5. Ease of Asset Replacement: What
and local authorities. These can include it takes to replace or upgrade the ships.
incentives such as tax cuts and disincentives This depends on ship cost, complexity and
like fines and carbon levies. lifespan, and the rate at which alternative
technologies are developed.
Can the sector change? i.e. is
decarbonisation feasible in a foreseeable future: 6. Ease of Infrastructure
Replacement: What it takes to set up
3. Technology Alignment: Technical green production of new fuels at scale,
and commercial feasibility of alternative deliver them to ports and prepare for
fuels and other lower emission technology bunkering. The more production capacity
alongside clarity on how to further develop needed and the more dispersed the
these. infrastructure, the greater the challenge.
29 DECARBONISING SHIPPING : ALL HANDS ON DECK DECARBONISING SHIPPING : ALL HANDS ON DECK 3009 Decarbonisation Readiness Assessment
Readiness questions Readiness factors Participants’ view on
criticality of barriers
Personal vehicles Shipping
Why should the sector change? 1. Market and Customer Demand ~85% Minor barrier 0% Major barrier
(illustrative, reference only)
100%
2. Regulatory Incentives ~70% Minor barrier 0% Major barrier
100%
Can the sector change? 3. Technology Alignment ~80% Minor barrier 0% Major barrier
100%
4. Clarity on Roles and Decision-Making ~50% Minor barrier 0% Major barrier
100%
How fast can the sector change? 5. Ease of Asset Replacement ~60% Minor barrier 0% Major barrier
100%
6. Ease of Infrastructure Replacement ~65% Minor barrier 0% Major barrier
100%
31 DECARBONISING SHIPPING : ALL HANDS ON DECK DECARBONISING SHIPPING : ALL HANDS ON DECK 32Exhibit 10
MARKET AND
Industry Perspective: Financiers do
not have the risk appetite to fund
unproven technologies.
CUSTOMER DEMAND Shipping companies rely heavily on loans,
which make up approximately 70% of capital
in the sector.21 According to most interviewees,
loans have dried up in recent years as pressure INTERVIEW INSIGHTS
has mounted on industry profitability. Smaller
85%
Most interviewees indicate that incentives from customers and the broader ship owners consider it particularly challenging
financial market are critical to free up investments in decarbonisation to obtain funding for new ships, let alone for
(see Exhibit 10). Such incentives are currently limited. more sustainable alternatives because financiers
currently regard them as financially and
operationally riskier.
Industry Perspective: Customers and Interviewees see initial signs of more sustainable Recent initiatives in green finance, such as the
Study participants perceive
charterers are not willing to pay or practices in shipping procurement criteria set Poseidon Principles, are important signals of
co-fund lower emission solutions. by companies that are under high regulatory progress.22 However, interviewees see them as a lack of market and
or consumer pressure, such as the automotive, more relevant and accessible to large owners, customer demand
Shipping plays an instrumental but invisible role food, luxury retail and some large commodities who already have good access to lower-cost to be a major barrier to
in most consumers’ lives. “Limited awareness sectors. However, there is currently insufficient financing.
means limited willingness to change the buying demand to unlock investments at scale.
decarbonisation
behaviour, especially when green products cost Industry Perspective: Lack of
more,” as mentioned by an executive from a Industry Perspective: Investors have transparency regarding emissions
transport and logistics company. no incentives to invest in companies hinders decision-making.
with lower emission solutions.
Lower emission shipping will result in additional To enable decarbonisation activity, there
cost, especially during the early transition Returns to shareholders of shipping companies must be better transparency of emissions
period. Interviewees indicated that charterers have been low over the last decade; therefore, across the sector. Without transparency, it will
and other shipping customers currently have major operators have been reluctant to make be impossible for customers, investors and
limited appetite for additional costs, citing major investments that may further erode financiers to identify top performers and to verify
competitiveness concerns and the fact that margins. commitments.
shipping often represents a small proportion of
their total emissions and cost. There are examples of shareholder activism Such data is not available today, as emissions Calls for more transparency are intensifying,
leading to sustainability commitments, such as reporting is only conducted for regulatory with some customers and charterers requiring
“Shipping faces less scrutiny scope 3 emissions targets, but “returns still take purposes and remains largely confidential. In emissions profiles and performance data for the
from end consumers than precedence over all other factors,” said an
executive from a ship management company.
addition, interviewees noted that consistent
collection and comparison of data would
ships that they use. As transparency grows, it
will become easier for first mover operators to
aviation and road freight Consequently, executive teams at ship-owning be challenging given the lack of accepted differentiate themselves by demonstrating the
where visibility is high” companies remain reluctant to make investments calculation standards. impact of their investments on emissions.
in lower emission technologies, which their
Shipping Operator
shareholders may regard as imprudent.
33 DECARBONISING SHIPPING : ALL HANDS ON DECK DECARBONISING SHIPPING : ALL HANDS ON DECK 34REGULATORY
INCENTIVES
The IMO’s 2050 ambition has created a common goal for the industry.
However, most interviewees believe more clarity is needed regarding binding
regulations, which will be instrumental to unlock progress (see Exhibit 11).
Exhibit 11 Industry Perspective: Lack of Industry Perspective: Enacting global Industry Perspective: The industry is
binding regulation regarding carbon regulation is a slow and complex worried that misalignment of global
emissions limits progress. process with many interests to align. and local regulation may lead to an
uneven playing field.
Interviewees indicate that historically there “IMO 2020 took over 15
is limited evidence of the shipping industry
implementing major changes without new
years, and that was simpler Interviewees acknowledge that if global
regulation takes too long, there is a risk global
INTERVIEW INSIGHTS regulations. The IMO 2020 regulations provide than decarbonisation” or regional bodies move first, creating an
70%
a case in point. Interviewees indicated that Shipping Operator uneven regulatory landscape and unnecessary
despite advance notice, many companies were complexity.
unprepared for the changes and had to make The IMO has 174 member-states, and most
last-minute investments to comply. interviewees believe that developing and For the most part, interviewees believe
adopting new global regulation will be very this could cause competitiveness issues
In general terms, interviewees hold two views time consuming. Interviewees wait with caution and increase the cost of compliance. As
on the role of regulation. A slight majority for more guidance on binding targets, expected an example, many interviewees flagged a
Study participants perceive believe that nothing can be done until in 2023.23 possibility that the European Union could
a lack of regulatory regulation becomes clearer. A sizeable minority define emission regulations before the IMO,
incentives to be a major indicate that the industry should take proactive However, most believe the long wait for global creating an uneven playing field. Companies
steps ahead of regulation. In the words of regulations will be worth it if it creates a level with Europe-based operations could then end
barrier to decarbonisation the CEO of one tanker operator, the lack of playing field across the globe. A chairman of an up carrying a larger proportion of the early
regulation is used “as an excuse to do nothing, Asia-based global operator noted, “it is either decarbonisation costs than their competitors
even though there are no regret activities that a level playing field across the globe, or speed. from other parts of the world.
can be taken today.” You cannot have both. The power of the IMO
is its member nations working together, but that
takes time.”
35 DECARBONISING SHIPPING : ALL HANDS ON DECK DECARBONISING SHIPPING : ALL HANDS ON DECK 36Exhibit 12
TECHNOLOGY viable alternative. If fuel cell technology was
INTERVIEW INSIGHTS
ALIGNMENT
80%
developed before hydrogen or ammonia are
available at scale, transition fuels like LNG
could potentially be used, and switched to a
new fuel when it emerges.
“Hydrogen economy is the
The shipping fuel landscape has not evolved a great deal since the transition ultimate solution, but still Study participants perceive
from coal in the 1950s. 80% of interviewees indicated that technology
alignment is needed if the industry is to meet the IMO’s 2050 ambition, many years away” a lack of technology
especially regarding which new fuels will be used where (see Exhibit 12). Ship Manager alignment to be a major
Yet the pathway to powering net-zero vessels remains uncertain. barrier to decarbonisation
Ammonia and hydrogen have different
characteristics. Hydrogen requires more storage
volume than ammonia for the same range, while
Industry Perspective: Alternative fuels methane emissions in the supply chain and that both hydrogen and ammonia require more
that support the 2050 ambition have it may distract the industry from investments in storage volume than HFO and LNG. Given that
technical limitations, are unproven zero-emission fuels. energy density plays a more important role on
and/or perceived as unsafe. ships than on land, one executive from a global producing these fuels sustainably will decrease.
Hydrogen and Ammonia shipping technology company noted, “if on As one interviewee put it, “the scale of
Liquefied Natural Gas (LNG) Interviewees consider hydrogen and ammonia land hydrogen becomes the big thing, ammonia investments we see in green hydrogen globally
LNG is 20 to 25% less carbon intensive than to be the most promising long-term fuel could be a good option for shipping, as it is a means it will become cost effective much
Heavy Fuel Oil (HFO), and emits less nitrogen alternatives for shipping, although neither of good way of carrying hydrogen.” Ammonia is faster than we think.” Conversely, there is little
oxides (NOx) and sulphur oxides (SOx). them is viable today. also already used in fertilizers. As such, there is evidence that other industries consider ammonia
some existing infrastructure that could be used, as a future fuel. For that reason, if shipping was
The prevailing view among interviewees is that Hydrogen and ammonia have significantly and “the shipping industry has had experience to select ammonia as its dominant fuel, it is likely
LNG will have a role to play as a transition fuel lower energy density than HFO, requiring handling it for over 30 years.” However, some that the infrastructure costs would be borne
in the next decade. As an executive at a global either new technology, more frequent refuelling interviewees are concerned about ammonia’s entirely by this sector.
bulk ship owner and operator said; “It took stops, or compromised cargo space to store high ignition energy and toxicity, with one
many years for LNG to become viable, it is the fuel. In addition, interviewees highlighted that Asia-based bulk ship operator saying that “we Other alternative fuels
only alternative we have today, and it will get us hydrogen requires ultra-low cryogenic conditions have been trying for the last 20 years to stop Biofuels are made from biomass. Synthetic fuels
under the 2030 IMO target.” to maintain its liquid state under atmospheric transporting ammonia by ships as it is toxic and are produced using a combination of hydrogen
pressure, creating potential for additional difficult to handle.” and carbon monoxide. These fuels are relatively
These interviewees pointed out that LNG costs. The storage challenge could be offset easy to adopt because they can largely use
adoption is increasing, and some ship owners by adopting energy-efficient technology and Current production of ammonia and hydrogen existing infrastructure and existing engines. But
are in the process of taking on LNG-powered moving from internal combustion engines to represents a small fraction of what the shipping given the large volume of fuel needed for the
ships to reduce emissions. fuel cells. This potentially makes the ships industry would require. A common concern is the industry and the land and biomass required to
more efficient, while saving space on ships. high cost to produce hydrogen and ammonia in produce it, interviewees raised concerns about
Others were more reserved about the role of However, most interviewees believe that a low-carbon or carbon-neutral way. However, the availability of biofuels in enough quantities.
LNG, pointing out that it will be insufficient to fuel cell technology is immature. It will likely in a scenario of abundant renewable power
meet the 2050 ambition, carries the risk of take at least 5-10 years before it becomes a and as technology costs decline, the cost of
37 DECARBONISING SHIPPING : ALL HANDS ON DECK DECARBONISING SHIPPING : ALL HANDS ON DECK 38More scepticism was expressed regarding one Europe-based operator suggested that, Interviewees indicated that many onshore operator put it, “shipping uses the lowest quality
the use of batteries. As one executive from a “if climate change accelerates, the negative sectors are also undergoing transitions in energy fuel from refineries, which means it’s cheap and
cruise company put it, “electrifying small ships is connotations of nuclear will be secondary to source and that decisions made on land will no one else wants it.” As a result, new fuels will
great, but most emissions come from deep-sea global warming.” have major consequences for which fuel will be likely cost more and will require the industry to
shipping, and there are no viable options to viable in shipping. One executive from a global compete for supply with other industries.
address that with batteries.” Exhibit 13 provides a summary of interviewees’ bulk ship operator indicated that, “most of these
assessment of key alternative fuels. technologies will have to find their way into land- Without a stronger commercial or regulatory
“If we don’t get our based sectors first, before being adopted in incentive, operators are sceptical about their
act together, we will still Industry Perspective: Too many
future fuels are being considered,
shipping. It is easier to develop these on land”. ability to find a fuel that is a viable alternative
to HFO. They indicate that many stakeholders
be talking about ten and there is a lack of clarity on how Industry Perspective: HFO is hard will need to play a part to develop and
different fuels when the the preferred fuel(s) will be chosen to to match in terms of commercial commercialise new technology. If a viable
allow for scale. attractiveness and existing scale. alternative is not found, various forms of carbon
deadline flies by” offsets will be required to reduce net emissions
Shipping Operator Many interviewees expressed concerns that the HFO, shipping’s primary energy carrier today, is to levels that support the sector’s ambition.
range of fuel options being considered is still cheap, energy-dense and has well-established
Finally, some US-based operators suggested too broad. This results in effort and investment supply chains. As a by-product of the refining
that, “nuclear is really the only solution that being spread too thin and challenges efforts process, it is used by few other industries which
exists today that could be implemented to coalesce around a viable solution in time to creates more certainty around cost and supply.
relatively quickly.” To strengthen that point, meet targets. As one executive from an Asia-based tanker
13 Industry Perspective on Alternative Fuels
Fuel Part of future mix? Engine type View on technology View on applicability to Advantages Disadvantages
(% participants) maturity shipping
Green Hydrogen 65% Combustion Medium Medium Cross-sector applications – possibly Cost
faster R&D Low energy density
Cryogenic storage conditions
Electric Low High Less space for engine and better
(fuel cell) specs than combustion
Green Ammonia 55% Combustion Medium High Relatively high energy density Cost
Port experience in handling Toxicity
Electric Low High Less space for engine and better
(fuel cell) specs than combustion
Biofuels 10% Combustion High Low Easy to implement in current engines Limited feedstock, unlikely to be
available to shipping
Methanol 10% Combustion Rarely mentioned Rarely mentioned Rarely mentioned Rarely mentioned
Batteries < 5% Electric High Low Mature technology Extremely low energy density – size
and weight of batteries
Nuclear < 5% Heat Medium Low Mature technology Very high investment, social aversion
39 DECARBONISING SHIPPING : ALL HANDS ON DECK DECARBONISING SHIPPING : ALL HANDS ON DECK 40Exhibit 14
CLARITY ON ROLES
Industry Perspective: Contracting
INTERVIEW INSIGHTS
models are inflexible, hindering
50%
investments that support lower-
AND DECISION-
carbon emissions.
Interviewees indicate that optimising ship
MAKING
operations, such as speed management or
just-in-time port arrivals, is one of the largest
potential areas of emissions reduction in the
short term.
Study participants perceive
a lack of clarity on
Decarbonisation is a complex process and requires decision-making with a roles and decision-
high degree of global alignment. Interviewees noted concerns regarding the making to be a major
industry’s ability to clarify roles and decision-making power of key stakeholders,
barrier to decarbonisation
which could negatively impact the effective allocation of resources in the
sector (see Exhibit 14).
15 Shipping Value Chain
Industry Perspective: The global Different forms of company ownership add
fleet is owned by many small extra complexity. State-owned enterprises, % Market share of top 10 players – Shipping customers
Currently key decision
companies, and multiple stakeholders large publicly listed corporations, large private ILLUSTRATIVE
makers in ship design
(e.g. consumer
goods companies)
are involved in ship operations, companies and numerous small, often family-
not shown
which complicates decision-making run, businesses all play important roles in the
regarding new technologies. industry. Varying forms of ownership mean
differing approaches to decarbonisation. As Engine Ship Ship Ship Ship operators Freight
manufacturers builders owners managers and charterers forwarders / 3PL
Ownership of the global shipping fleet is one executive from a chemical ship operator
fragmented, with the top 10 ship owners put it, “state-owned entities are under the most
making up less than 20% of total capacity. social pressure, public companies face a mix
The remaining 80% of the fleet is owned by of social and commercial pressure, and privateHowever, decisions about speed and port arrival times are often dictated by charter party agreements, which many interviewees say are inflexible and, therefore, disincentivise improvements. “We could get a 10% CO₂ reduction and fuel-cost savings by optimising arrival times like airlines. But contracts mean we would not get the benefits” Shipping Operator Charterers are often equally unable to invest in new on-board solutions to improve vessel efficiency. Asset owners are typically responsible for new investment decisions but rarely reap the benefits of resulting efficiency. 43 DECARBONISING SHIPPING : ALL HANDS ON DECK DECARBONISING SHIPPING : ALL HANDS ON DECK 44
Exhibit 16
EASE OF ASSET
Some shipping leaders are more optimistic,
pointing out that the industry has successfully INTERVIEW INSIGHTS
transitioned fleets in the past. For example, after
REPLACEMENT 60%
the introduction of new design regulations for
tankers in 1992, the entire fleet was changed
from single to double-hull design in under 25
years.
“Our timer doesn’t start until
we get our fuel, and the Study participants perceive
Today’s ships are huge feats of engineering, requiring major capital and complexity
several years to build. They are also costly to modify. Interviewees highlighted clock is already ticking”
the risks of investing in new ships and the time it will take to replace the fleet as Ship owner
of asset replacement
key challenges (see Exhibit 16). to be a major barrier to
decarbonisation
Industry Perspective: Ship owners mentioned LNG-powered propulsion
are reluctant to invest in net-zero installations, which can be made ammonia-
vessels due to risks resulting from lack ready with a relatively small investment.
of clarity regarding future fuels and
regulation. Industry Perspective: Ship lifespans
are long, requiring significant time to
Interviewees highlighted that the lack of clarity replace existing fleets.
regarding regulation and future fuels has
exacerbated conservatism in the industry and Given the average lifespan of a ship,
generated a reluctance to invest in new ships to interviewees acknowledge that transitioning
“avoid the risk of getting locked into a wrong the global fleet will take 20 to 30 years, even
technology,” said an executive from a global if a viable zero-carbon fuel was available
shipping financier. today. Considering the IMO’s 2030 and 2050
ambitions, this creates significant pressure to
“There is a risk that new identify viable fuel alternatives as soon as
fuels or regulation will make possible.
new ships obsolete” Most interviewees indicate that the industry
Shipbuilder will need to make greater progress in
operational efficiencies, retrofitting and ship
Additionally, some interviewees noted that the decommissioning to transition the fleet in time.
industry is starting to recognise that current ship However, many believe that retrofits are costly,
designs are inflexible. Designers and technology and, as margins are under pressure, they need
providers are focusing on improving flexibility to to “sweat the assets,” in the words of the CEO
allow easier switching between fuels or lower of a large tanker operator.
cost of retrofits. For example, a few interviewees
45 DECARBONISING SHIPPING : ALL HANDS ON DECK DECARBONISING SHIPPING : ALL HANDS ON DECK 46EASE OF
INFRASTRUCTURE
REPLACEMENT
The shipping industry consumes 3.3 pWh (~12EJ) of energy annually.24
Transitioning the world’s fleet to a new source of energy will, therefore,
take a huge effort to build out the necessary fuel production and bunkering
infrastructure. Most interviewees consider this a major barrier to decarbonisation
(see Exhibit 17).
Exhibit 17 Industry Perspective: Infrastructure
to produce zero-emission fuels will
require significant investment, time to
scale up and will depend on decisions
INTERVIEW INSIGHTS in other sectors.
65%
There is currently very limited infrastructure
for the sustainable production of alternative
fuels being explored by the industry. Several
interviewees cited a recent study by the
University Maritime Advisory Services, which
estimates that 87% of the $1.65 trillion cost to
Study participants decarbonise shipping by 2050 will need to be
perceive complexity dedicated to creating supply and bunkering
of infrastructure infrastructure.25
replacement to While bunkering infrastructure will be specific
be a major barrier to to shipping, fuel production is a broader global
decarbonisation challenge involving many sectors of the global
economy. As such, interviewees recognise the
need to collaborate with onshore sectors and
energy companies to secure reliable fuel supply.
47 DECARBONISING SHIPPING : ALL HANDS ON DECK DECARBONISING SHIPPING : ALL HANDS ON DECK 48Industry Perspective: Bunkering infrastructure in a few key ports could have a Given the uncertainties, developing the The main barriers to shipping decarbonisation
providers and ship operators are disproportionate impact due to the needs of bunkering infrastructure will be one of the are summarised in Exhibit 18. The changing
waiting on each other to make the large container lines and regular bulk routes. most time-consuming steps in shipping paradigm and solutions to address the barriers
initial investments in net-zero ships For instance, 20 ports handle around 45% of decarbonisation. and meet the IMO’s 2050 ambition are
and infrastructure. global container trade26. In the words of one explored in the next section.
classification society, “building infrastructure in “Why would I build a ship
Given the uncertainty over fuels, neither ports
nor ship owners are willing to make investments
the top five ports would already help a lot.”
that runs on a new fuel until
in new technologies. However, port decisions on adopting new fuels I know I can fuel it. And no
and building out the infrastructure will take time. new bunkering will be built
The biggest challenge in the shift to a new fuel “With LNG, it took some ports ten years to go
is in tramp trade, where ships do not operate through the authorities, and that was when they until there is a market”
according to a predetermined schedule. Ships knew they wanted LNG,” said an executive at a Ship operator
operating in this way require a near-ubiquitous large European operator.
supply of fuel. Conversely, developing
18 Decarbonisation Readiness Summary
Readiness factors Main barriers
Why should 1. Market and Customer Customers and charterers are not willing to Investors have no incentives to invest in Financiers do not have the risk appetite Lack of transparency around emissions
the sector Demand pay or co‑fund lower emission solutions companies with lower emission solutions to fund unproven technologies hinders decision-making
change?
2. Regulatory Incentives Lack of binding regulation around carbon Enacting global regulation is a slow, and The industry is worried that misalignment of
emissions limits progress complex process with many interests to global and local regulation may lead to an
align uneven playing field
Can the sector 3. Technology Alignment Alternative fuels that support 2050 ambition Too many future fuels are being HFO is hard to match in terms of commercial
change? have technical limitations, are considered, and there is lack of clarity attractiveness and existing scale
unproven and / or perceived as on how the preferred fuel(s) will be
unsafe chosen to allow for scale
4. Clarity on Roles and The global fleet is owned by many small Contracting models are inflexible
Decision-Making companies and multiple stakeholders hindering investments that support lower carbon
are involved in ship operations, complicating emissions
decision-making around new technologies
How fast can 5. Ease of Asset Ship owners are reluctant to invest in Ship lifespans are long, requiring
the sector Replacement net-zero vessels due to risks resulting from significant time to replace existing fleets
change? lack of clarity around future fuels and
regulation Severity
Major
6. Ease of Infrastructure Infrastructure to produce zero emission Bunkering providers and ship operators are
Replacement fuels will require significant investment, waiting on each other to make the Moderate
time to scale up and will depend on initial investments in net-zero ships and
decisions in other sectors infrastructure Minor
49 DECARBONISING SHIPPING : ALL HANDS ON DECK DECARBONISING SHIPPING : ALL HANDS ON DECK 50You can also read
