Clean Maritime Plan - Gov.uk
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Clean Maritime Plan
Clean Maritime Plan July 2019
The Department for Transport has actively considered the needs of blind and partially sighted people in accessing this document. The text will be made available in full on the Department’s website. The text may be freely downloaded and translated by individuals or organisations for conversion into other accessible formats. If you have other needs in this regard please contact the Department. Department for Transport Great Minster House 33 Horseferry Road London SW1P 4DR Telephone 0300 330 3000 Website www.gov.uk/dft General enquiries: https://forms.dft.gov.uk © Crown copyright 2019 Copyright in the typographical arrangement rests with the Crown. You may re-use this information (not including logos or third-party material) free of charge in any format or medium, under the terms of the Open Government Licence. To view this licence, visit http://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/ or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or e-mail: psi@nationalarchives.gsi.gov.uk Where we have identified any third-party copyright information you will need to obtain permission from the copyright holders concerned.
Foreword by Minister
for Maritime
As the Minister for Maritime, I have made clear By 2050, we want zero emission shipping to be
my commitment to maintaining the UK’s position commonplace globally. We want the UK to have
as a world maritime leader. Maritime 2050, taken a proactive role in leading this transition,
published in January, was our blueprint for the to be seen globally as a role model, and to have
future of the sector, anticipating the challenges successfully captured a significant share of the
and opportunities that lie ahead and recognising economic, environmental and health benefits
the UK’s strengths in facing them. This Clean that will follow.
Maritime Plan is the environment route map of
To achieve these aims, it is crucial that industry
Maritime 2050, outlining the UK’s pathway to
and government work alongside each other,
zero emissions shipping.
and not in isolation. I am incredibly grateful
In April 2018, the UK was a leading voice in to the representatives from across the sector
the negotiations at the International Maritime who have engaged with us to develop this
Organization, resulting in the first ever plan. To the members of the Clean Maritime
Greenhouse Gas Strategy for the sector, Council and its subgroups. To over 80 industry
agreeing a target of reducing emissions by stakeholders attended a full day workshop to
at least 50% by 2050, and phasing them out share their own visions for the future of the
entirely as soon as possible this century. The sector. Not to mention the many individuals
Clean Maritime Plan makes the UK one of who have spoken to me directly throughout the
the first countries since the agreement of that year. I look forward to the continuation of this
Strategy to publish our National Action Plan. collaborative approach.
The Plan clearly demonstrates our ambition and
The Clean Maritime Plan presents an ambitious
commitment to tackling this important issue,
vision for the future of zero emissions shipping
at this pivotal moment for the future of the
in the UK. It is an important step on our journey
maritime sector.
to reducing emissions and embracing global
A global transition to clean shipping is clean maritime revolution. But the real value
underway. This route map identifies ways of the Plan will be in the work that continues
to tackle air pollutants and greenhouse gas beyond it, with the whole sector, Government,
emissions in parallel while securing clean growth industry, researchers and the third sector,
opportunities for the UK. Research undertaken working together. The opportunity before us is
for the Government suggests that the global substantial, and with the UK’s proud history of
market for maritime emission reduction maritime innovation, we can grasp it.
technologies could reach $15 billion per year by
2050, potentially resulting in economic benefits
to the UK of $690 million per year by the middle
of the century. Nusrat Ghani
Minister for Maritime
Executive Summary 1
Endorsements
The UK Chamber of Shipping is proud to have been part of this very important
initiative between Government and industry. There is no greater challenge facing
humanity than containing and reducing global warming and nor are there many
greater threats to all the species of fauna and flora that share this planet with us.
Whilst shipping is by far the most environmentally sound method of transporting
goods and people, it too needs to do all it can to reduce its environmental
footprint, including CO2 emissions. In recent years the Chamber and its
membership have been at the forefront of driving positive environmental change and it looks forward
to continuing this vital work with the UK Government.
David Balston, Director of Policy, UK Chamber of Shipping
As an SME leading an ambitious initiative developing maritime renewable energy
systems, we have welcomed the Clean Maritime Council’s vital initiative. The
Council has collaborated across the complex shipping eco-system and made
excellent progress to help ensure that the UK benefits from the huge global
opportunity arising from the need for urgent transformational shift to zero emission
ships across the global fleet. Now is the time pioneer 21st century cleantech
solutions and enable them through bold and progressive business models.
Together the Council has been building on our national strengths, reducing business risk and
moving fast to create world-leading propositions. We look forward to continuing the process.
Diane Gilpin, Founder & CEO, Smart Green Shipping Alliance
“The Institute welcomes the opportunity to help shape the Clean Maritime Plan
– a clear statement by the Government on its desire to mitigate the impact of
rapid climate change and curb warming to 1.5°C. It is clear that swifter action
is required by all industries to reduce emissions within a limited time-span and
the shipping industry is no exception. In light of a fast-approaching crisis, it is
encouraging to see that the government is focusing on how innovation and
expertise of the UK’s maritime community can help us achieve this vital goal.”
David Loosley, Chief Executive, Institute of Marine Engineering, Science & Technology (IMarEST)
2
Contents
Foreword by Minister for Maritime 1
Endorsements 2
Executive Summary 4
1. The Case for Action: Tackling Emissions and Capturing Clean Growth Opportunities 8
2. Our Approach 20
3. Economics 23
The Role of Targets 23
The Role of Incentives 28
The Role of Green Finance 29
4. Infrastructure 32
Infrastructure for Zero Emission Shipping 32
Public procurement, subsidy and licensing regimes 37
Case Studies 39
5. Innovation 41
6. Regulation 44
7. Next Steps 46
Map: The Clean Maritime Plan and Maritime 2050 Zero Emission Shipping
Recommendations 48
Glossary 51
Endnotes 53
Executive Summary 3
Executive Summary
The world’s proudest maritime 2. Building on this strategic ambition, Maritime
heritage, as a global leader for 2050 sets a vision for clean maritime in the
UK as follows:
the 21st century
In 2050, zero emission ships are
1. In January 2019 the government published
commonplace globally. The UK has taken
Maritime 20501, a strategic vision for the
a proactive role in driving the transition to
future of the maritime sector building on
zero emission shipping in UK waters and is
the earlier 2015 Maritime Growth Study2,
seen globally as a role model in this field,
outlining ambitious recommendations
moving faster than other countries and
to take the UK maritime industry into
faster than international standards. As a
the second half of the 21st century.
result, the UK has successfully captured
Underpinning the Maritime 2050 strategy
a significant share of the economic,
are 10 core strategic ambitions, covering
environmental and health benefits
a range of topics from competitiveness to
associated with this transition.
technology. These include the intention
that the UK ‘lead the way in taking action 3. The Clean Maritime Plan is the Environment
on clean maritime growth, enjoying Route Map of Maritime 2050, setting out
economic benefits from being an early in more detail how Government sees the
adopter or fast mover.’ UK’s transition to a future of zero emission
shipping3. It encompasses the maritime
4
commitments within the Clean Air Strategy4 is vital. The Clean Maritime Plan has been
to ensure that the sector takes the steps developed in close partnership with the
necessary to protect human health and maritime industry. This has included an
the environment from air quality pollutants. extensive programme of stakeholder
At the same time, it recognises the need engagement, including the establishment
for all countries to take action to address of a Clean Maritime Council, alongside
emissions of greenhouse gases, in line with workshops and ongoing dialogue. The
the Paris Agreement and its temperature Council is a strategic advisory body, bringing
goals5. In 2018 the UK was a leading voice together leading figures from the maritime
in the agreement of the Initial IMO Strategy industry, academia and Government10. The
on the Reduction of GHG from Ships Clean Maritime Plan has also been informed
(‘the IMO GHG Strategy’)6. The Strategy by a programme of economic and technical
commits the maritime sector globally to research, available online11.
reducing emissions of GHGs from shipping
6. This process of consultation and research
by at least 50% by 2050 compared to
has indicated that we are on the cusp
2008, while pursuing efforts to phase them
of a global transition to zero emission
out. While the UK continues to believe that
shipping. To reach significant reductions of
global action is the most effective way to
greenhouse gases and air quality pollutants,
achieve these ambitions, it also recognises
energy efficiency technologies will not be
the role that national action can play in
sufficient. Low or zero-emission fuels and
leading the transition to zero emission
propulsion technologies will be necessary.
shipping. In this context, the Clean Maritime
Many other countries are demonstrating
Plan represents the UK’s National Action
a keen interest in the development and
Plan on shipping emissions.
implementation of such green shipping
4. But above all, the Clean Maritime Plan is innovations and are moving swiftly to
about opportunity. For example, research demonstrate leadership in this field.
commissioned by the Government Maritime 2050 sets out the UK’s ambition
estimates that the economic benefits to on this front, while the Clean Maritime Plan
the UK across 11 key maritime emission sets out a route map for domestic action
reduction options could reach $650- to respond to this opportunity. It will help
890 million per year by the middle of the ensure that the UK builds on its unique
century7. In line with the Government’s maritime heritage to remain a world leading
vision for sustainable economic growth as maritime economy.
set out in the Clean Growth Strategy8 and
Industrial Strategy9, the Clean Maritime Clean Maritime Plan Ambitions
Plan seeks to support the innovation
7. It is Government’s intention to support a high
already present in British manufacturing,
level of ambition on emissions reduction,
technology, fuel production and services,
providing enough direction to give investment
encouraging the translation of this expertise
certainty while allowing industry the space to
to the potential new clean maritime market.
innovate. To assist in providing this certainty,
5. In order to realise the full potential of this and in line with the recommendations set
clean growth opportunity a collaborative out in Maritime 2050, we have set out
approach from industry and Government Clean Maritime Plan Ambitions for the UK
Executive Summary 5
maritime sector. A significant increase in
technology commercialisation and uptake 10. In order to reach this vision
will be necessary by 2025 and 2035 to make By 2025 we expect that:
it possible to reach zero emission shipping
by the latter half of the century. As such, i. All vessels operating in UK waters
ambitions are articulated for each of these are maximising the use of energy
dates, highlighting the expected direction efficiency options. All new vessels
of travel. being ordered for use in UK waters
are being designed with zero
8. These zero emissions shipping ambitions emission propulsion capability. Zero
are intended to provide aspirational goals emission commercial vessels are in
for the sector, not mandatory targets. They operation in UK waters.
can only be achieved through collaboration
between Government and industry, ii. The UK is building clean maritime
promoting the zero emission pathways clusters focused on innovation and
that maximise the economic opportunities infrastructure associated with zero
for the UK economy while also minimising emission propulsion technologies,
costs for UK shipping. including bunkering of low or zero
emission fuel.
Ambitions By 2035 we expect that:
iii. The UK has built a number of clean
9. In Maritime 2050, the Government
maritime clusters. These combine
set out its vision for the future of zero
infrastructure and innovation for
emission shipping:
the use of zero emission propulsion
“In 2050, zero emission ships are technologies. Low or zero emission
commonplace globally. The UK has marine fuel bunkering options are
taken a proactive role in driving the readily available across the UK.
transition to zero emission shipping in
iv. The UK Ship Register is known as a
UK waters and is seen globally as a
global leader in clean shipping and
role model in this field, moving faster
the UK is home to a world-leading
than other countries and faster than
zero emissions maritime sector,
international standards. As a result,
with:
the UK has successfully captured a
significant share of the economic, a. a strong UK export industry
environmental and health benefits
b. cutting-edge research and
associated with this transition.”
development activities
c. the global centre for investment,
insurance and legal services
related to clean maritime growth.
6 Clean Maritime Plan
Clean Maritime Plan
●● Establishing a Clean Maritime Award
Commitments to celebrate leaders in the field of
11. The following are the Government’s key emissions reductions.
policy commitments from the Clean
6. The Government will establish the
Maritime Plan. These aim to support the
Maritime Emissions Regulation
sector as it moves towards the vision
Advisory Service (MERAS) by
set out in Maritime 2050, and the Clean
2020. Supported by the Maritime
Maritime Plan Ambitions.
and Coastguard Agency, MERAS
will provide dedicated support to
Commitments innovators using zero emission
propulsion technologies, assisting
1. Government will launch a call them through the regulatory process.
for evidence in 2020 on non-tax
incentives to support the transition to 12. To help oversee the implementation of
zero emission shipping. these policy commitments in the short-
2. Government will consult in 2020 on term, the Clean Maritime Council will
how the Renewable Transport Fuel continue as a strategic advisory body.
Obligation could be used to encourage The Government will publish a review of
the uptake of low carbon fuels in implementation of the Clean Maritime Plan
maritime. in 2022.
3. Government will launch a ‘Greening
Next steps
Finance/Financing Green’ for Maritime
Initiative at London International 13. The Clean Maritime Plan sets out a national
Shipping Week 2019. action plan to take UK maritime towards
the vision for zero emission shipping set out
4. In conjunction with a working group
in Maritime 2050. This action plan is full of
as part of the Clean Maritime Council,
opportunity but represents a challenge to
Government will undertake a study to
all stakeholders in the maritime sector, both
identify and support potential UK zero
public and private. Action will be necessary
emission shipping clusters.
from Government, industry and the
5. Government will support clean academic sector. But the potential rewards
maritime innovation in the UK, are substantial. The UK has a rich maritime
beginning with: heritage, and we have the opportunity
now to turn that wealth of history and
●● Providing seed funding to contribute
experience towards real global leadership
to the establishment of MarRI-UK;
in a vast new market. Government is
●● Funding a competition for innovation committed to working with the maritime
in clean maritime in 2019; sector to make that vision a reality.
●● Launching a round of Government
grant support for early stage
research projects related to clean
maritime; and
Executive Summary 71. The Case for Action:
Tackling Emissions and
Capturing Clean Growth
Opportunities
Tackling Emissions at the end of 2018, totalling 59.6 million
deadweight tonnage17.
14. Maritime transport is often described as
the backbone of international trade and 16. The UK also enjoys a globally significant
the global economy. Around 80 per cent maritime tourism and leisure industry. Total
of global trade by volume and over 70 per revenue from the UK’s leisure, superyacht
cent of global trade by value are carried by and small commercial marine industry was
sea and are handled by ports worldwide12. put at £3.12 billion in 2017 with export
success counting for just over 30% of the
15. The UK’s maritime sector is substantial. sector’s total revenue. Our cruise sector is
There are 51 major ports in the UK, which an exciting and fast growing one with 1.96
together handled just under half a billion million cruises sold in the UK in 2017, half
tonnes of commercial cargo13 and over of which started at a British port18.
22 million passengers14 in 2017. This
accounts for around 95% of UK trade. The 17. The UK’s maritime services sector is also
maritime sector directly contributes £14.5 significant. Maritime business services
billion Gross Value Added (GVA) to the directly contribute £2 billion GVA to the
UK’s economy a year and directly employs UK economy. When impacts on the wider
185,700 people15. If taken as a group, the economy are accounted for, including the
Red Ensign Group16 would have the 10th rest of the maritime sector, this rises to
largest registered trading fleet in the world nearly £5 billion. The City of London is a
8global leader in this area; the largest share UK’s total domestic NOx emissions, 2% of
of worldwide marine insurance premiums primary PM2.5 and 7% of SO225. However,
and shipbroking transactions occur in the a recent analysis carried out by Imperial
UK, comprising 35% and 26% of the global College, using Automated Identification
market respectively19. System (AIS) data26 showed that, in 2016,
NOx emissions from UK international
18. Like other important sectors of the economy,
shipping and shipping in transit were three
the maritime sector is increasingly aware
and six times higher respectively than for
of its environmental and social impacts. As
UK domestic shipping, and so have a more
set out in Maritime 2050, the impacts of
significant impact on air quality in the UK.
the sector in terms of emissions to air – in
the form of both air quality pollutants and 21. The fuel used for shipping has historically
greenhouse gases – require attention. been some of the most polluting fuel used
across all transport modes. The introduction
Air Quality Pollutants of Emission Control Areas (ECA) has helped
limit the sulphur content of maritime oil but
19. Air pollution is a major public health risk
this is still typically an order of magnitude
ranking alongside cancer, heart disease
higher in these fuels than in those used in,
and obesity, and poses the single greatest
for instance, road vehicles27.
environmental risk to human health in the
UK. This underlines the importance of the 22. To date, domestic policy on transport-
recently published UK Clean Air Strategy related air pollutant emissions has largely
(CAS)20. Recent research commissioned focused on roads (particularly in relation
by Public Health England has found that to nitrogen dioxide concentration). As a
the health and social care costs of air result, average levels of nitrogen dioxide at
pollution in England could reach £5.3 billion the roadside are at their lowest level since
by 203521. Certain air quality pollutants the Government first started to collect
such as nitrogen oxides are also known to these statistics28. As emissions from road
affect biodiversity22. The CAS, published transport begin to decrease because of
in January 2019, outlined how actions to significant mitigating intervention – as set
reduce emissions of 5 key pollutants could out in the Government’s Road to Zero
cut the costs of air pollution to society by Strategy29 – the contribution of relatively
£1 billion every year by 2020, rising to £2.5 smaller sources of air pollution, including
billion every year from 203023. the maritime sector, will increase.
20. Our understanding of the evidence on air
Greenhouse Gases
quality pollutant emissions from shipping
and wider port activity is growing rapidly. 23. In terms of CO2 emissions, shipping is
The latest evidence shows that shipping considered one of the most efficient modes
generates emissions to air of several of transport30. However, it also represents a
pollutants harmful to human health: substantial source of GHG emissions.
nitrogen oxides (NOx), sulphur dioxide
24. The most recent study by the IMO estimates
(SO2), particulate matter (PM2.5 & PM10),
that international shipping accounted for
volatile organic compounds (VOCs)
2.2% of global CO2 emissions in 201231.
and ammonia (NH3). In 2016, domestic
This is equivalent to the total emissions
shipping24 alone accounted for 11% of the
1. The Case for Action: Tackling Emissions and Capturing Clean Growth Opportunities 9of Germany, the world’s 4th biggest of relatively smaller sources of GHGs,
economy32. If no further action is taken then including the maritime sector, will increase.
estimates from the IMO suggest that the
CO2 emissions from international shipping Existing Emission Policy
could grow by between 50% and 250%
Air Quality Pollutants
by 205033, and a study for the European
Parliament suggests that international 27. There are limited regulations or policies in
shipping could account for 17% of global the UK specifically to incentivise reductions
CO2 emissions by 205034. of air pollution from shipping. To date,
the UK’s main priority in tackling ship
25. The UK does of course contribute to these
emissions has been exerting influence at an
global maritime GHG emissions, both
international level.
through international shipping calling at
UK ports35 and UK domestic shipping. UK 28. Air pollution from shipping is regulated
domestic shipping accounted for 5.9Mt by the IMO through the International
of CO2 equivalent in 2017, equating to Convention for the Prevention of Pollution
1% of all domestic emissions. Domestic from Ships (MARPOL). Annex VI of
and international shipping together were MARPOL entered into force in 2005, with,
responsible for 13.87Mt of CO2 equivalent in among other things, the aim of minimising
201736. airborne emissions from ships. As well as
overarching European Directives on ambient
26. As a percentage of the UK’s overall GHG
air quality38, the European Commission has
emissions, shipping’s contribution (both
also introduced specific Regulations for
international and domestic) is 3.4%37. As
progressively integrating maritime emissions
emissions from other parts of the economy
into the EU’s policy for reducing its domestic
decrease in line with UK commitments and
GHG and pollutant emissions39.
action on climate change, the contribution
Figure 1: UK domestic and international shipping emissions (CO2e)
Million tonnes of carbon dioxide equivalent
12
10
International Shipping
8
6
Domestic Shipping
4
2
0
2003 2010 2017
Source: DfT (2018) Energy and Environment Data Tables: https://www.gov.uk/government/statistical-data-sets/energy-and-
environment-data-tables-env
10 Clean Maritime Plan29. The UK has played a leading role in matters related to the introduction of the
negotiating international limits to pollutant 0.5% sulphur cap. The IMO is making
emissions from shipping, for example in the good progress, and we are confident
establishment of the North Sea Emissions outstanding issues will be resolved before
Control Area (ECA). An ECA represents the implementation date.
an area of seaspace identified under
32. At a domestic level, the Government’s Clean
international maritime law for additional air
Air Strategy (CAS)40, which was published in
pollution controls, inrended to address areas
January 2019, sets an ambitious and holistic
of significant vulnerability to air pollution fro
approach to improve air quality and reduce
maritime sources such as busy shipping
emissions of air pollutants across all sectors,
lanes. The North Sea and English Channel
including the maritime sector. The CAS was
are covered by an ECA which was declared
designed to deliver the emission reductions
in 2005 and entered into force in 2006 under
needed to achieve emission ceilings in 2020
the MARPOL Convention. The area initially
and 2030, halving the impacts of air pollution
covered only SOx emissions and restricted
on human health and the environment.
ships to fuel containing not more than 1.5%
In the CAS, the Government committed
sulphur (or a technical equivalence). This
to developing the Clean Maritime Plan,
sulphur limit was further revised to a maximum
alongside a Clean Maritime Council to inform
of 1.0% in 2010 and finally 0.1% in 2015.
the development and implementation of
30. In 2016 it was agreed at the IMO that the the Plan. Also in the CAS, Government
North Sea would become a NOx ECA. This committed to publish in 2019:
will enter into force on 1 January 2021 and
●● A Call for Evidence to explore
will require newbuild ships delivered after
options for standardising environmental
that date to operate against the IMO’s ‘Tier
regulations for vessels operating
III’ (most stringent) NOx control standards.
domestically within the UK, including
In practical terms, this means that new
inland waterways.
ships operating in these waters will need
to reduce their NOx emissions by around ●● A consultation on options for extending
three-quarters. This represents significant the North Sea Emissions Control Area
progress, and the industry has invested in beyond its current geographical limits or
new technologies like exhaust gas cleaning establishing new, geographically distinct,
systems and liquefied natural gas (LNG) as Emissions Control Areas around the UK
a fuel to meet these new limits. coast.
31. In 2008, Member States at the IMO agreed ●● Guidelines to advise ports on how
to a 0.5% sulphur limit for global shipping to develop effective and targeted Air
outside emission control areas (ECAs) Quality Plans.
from 2020 (subject to a review on fuel
33. Further detail on these commitments is set
availability), a reduction of three percentage
out below.
points from the current limit. This decision
was confirmed in 2016 at the IMO’s Greenhouse Gases
Marine Environment Protection Committee
34. In relation to greenhouse gases, at an
(MEPC). The UK continues to co-operate
international level, the UK has recently
closely with other Member States at the
been at the forefront of pushing for an
IMO on detailed technical and operational
1. The Case for Action: Tackling Emissions and Capturing Clean Growth Opportunities 11ambitious strategy to reduce GHGs from inclusion therein, is set out below (see
shipping at the IMO41. In April 2018, Member ‘The Role of Targets’).
States at the IMO agreed in this strategy a
37. On a smaller scale than sector-wide
commitment to phasing out GHG emissions
targets, there are certain domestic
from shipping as soon as possible in this
policies which encourage the uptake of
century and reducing GHGs by at least
zero emission shipping, most notably
50% compared to 2008 by 2050. This
the Renewable Transport Fuel Obligation
commitment from the IMO sends a strong
(RTFO). As well as applying to the road
signal to the whole shipping sector on the
sector (on a mandatory basis) and aviation
need for investment in the development of
sector (on an optional basis), the RTFO
low- and zero-carbon fuels and innovative
currently applies to fuel suppliers for the
energy-efficient technologies. Member
non-road mobile machinery (NRMM)
States of the IMO are working now to
sectors, the definition of which includes
develop detailed measures which will ensure
inland shipping and recreational craft that
the 2050 target is attained.
do not normally operate at sea.
35. Domestic policy relating to emissions of
GHGs from the maritime sector is based Clean Growth Opportunities for
around the Climate Change Act 2008, the UK
under which the Government sets five-
yearly carbon budgets which currently run 38. To reach the challenging international
until 2032. These restrict the amount of targets set for the reduction of GHGs and
GHGs the UK can legally emit in a five-year air quality pollutants, a global transition
period. towards zero emission shipping is required.
This will involve a transformation of the
36. Emissions from domestic shipping are shipping industry as well as port and
included in both the carbon budgets and bunkering infrastructure. While certain fuels
the 2050 target. Although emissions from are phased out, the transition will open up
international shipping are not currently new technology/fuel sectors and related
included in the UK’s targets under the supply chains. In the context of the UK, this
Climate Change Act 2008, our carbon Clean Maritime Plan sees zero emission
budgets put the UK on a trajectory shipping as a future whereby no GHGs or
consistent with a 2050 target which air quality pollutants are emitted by vessels
includes these emissions. While this (of all types) operating in UK waters or
national policy sets the context for national in the ship-to-shore activities required to
targets on emissions, there are currently facilitate those operations.
no specific sectoral targets in place for
UK domestic or international shipping 39. Figure 2 below summarises a range of
emissions. Likewise, Government has technologies and fuels which may have
not yet formally accepted any planning the potential to play a part in the global
assumption for international shipping transition to zero emission shipping, and
emissions. Further consideration of the Table 1 gives a simple explanation of the
UK’s national GHG reduction targets, and operation of these42. This list is not intended
the question of international shipping’s to be exhaustive.
12 Clean Maritime PlanFigure 2: Technologies and fuels on a pathway to zero-emission shipping
OFFBOARD TECHNOLOGY ONBOARD TECHNOLOGY
Reformer Methanol Methanol Methanol KEY
Natural gas + CCS synthesiser fuel storage
Hydrogen flow Electricity flow Other energy flow
Ammonia Ammonia Ammonia
1. The Case for Action: Tackling Emissions and Capturing Clean Growth Opportunities
synthesiser2 fuel storage
Hydrogen Hydrogen Electric
Fuel cell propulsion
fuel storage system
Solar Electrolyser
Batteries Hybrid
Shore conversion
Other Low carbon
renewables electricity power Auxiliary
systems
Wind BioLNG/other Combustion Exhaust
Other fuels
fuel storage engine cleanup
Other energy
Biomass Gasifier efficiency
options
Liquefier BioLNG fuel
Air
Anaerobic
Waste lubrication
digster
Enhanced
propulsion
Wind
propulsion
Energy source Conversion technology Form of propulsion
1 Steam Methane Reformer (SMR) + Carbon Capture & Storage
2 Equipment used for the Haber Bosch process
Source: Frontier Economics for DfT
13Table 1: T
echnologies and fuels on a pathway to zero-emission shipping
Technology/Fuel Technology/fuel usage Further detail
Methanol Can be used directly in an internal Can be used as a fuel itself or
combustion engine or fuel cell. a store for hydrogen.
Hydrogen Can be used as an input
Alternative fuel propulsion
to ammonia or methanol
production as well as a fuel
itself.
Ammonia Can either be used as a
fuel itself, or as a carrier for
hydrogen before the hydrogen
is used as the fuel.
Biofuels Used directly in an internal combustion Various types of biofuels from
engine. different sources of biomass
(e.g. crops, wastes) possible.
Hybrid propulsion A diesel engine acts as a power Diesel engine power converted
source, charging batteries, which to electric drive.
power an electric motor, often in order
to keep the diesel operating at its most
efficient load point.
Fully electric No diesel engine. An electric motor is Batteries charged onshore.
propulsion entirely powered by batteries, which
Non-fuel propulsion
are charged whilst the vessel is in port.
Shore-power Use of an onshore power supply Does not substitute propulsion
(cold-ironing) (rather than onboard diesel engines) to energy, only auxiliary loads and
run auxiliary (non-propulsion) electric only when in port.
systems while the vessel is in port.
Wind propulsion Can take various forms, such as:
– Sails
– Flettner rotors
– Kites
Solar power Use of photovoltaic cells to covert solar Enhances primary propulsion
radiation into electric power using the or auxiliary supply.
available space on deck.
Various Examples include: These are all options that have
Energy efficiency
– Rudder Bulb potential to improve energy
– Air Lubrication Bubbles efficiency of vessels43.
options
– Pre-Swirl propeller ducts
– Vane wheel
– Hull scrubbing
– Trim optimisation
14 Clean Maritime Plan40. These technologies and fuels all have with uptake of low emission shipping
different ‘lifecycle emissions’, dependent on technologies primarily centred on a wide
the emissions generated in their production, array of energy efficiency or exhaust-
distribution and use. For instance, in cleaning systems. Given the early stage
the case of electric propulsion, lifecycle of development of these markets, there
CO2 emissions depend on the source of remain opportunities for countries to build
electricity (whether generated by renewable up expertise or dominance in wide parts of
energy or fossil fuels), and for hydrogen the zero-emission shipping supply chain.
propulsion, on the production methodology
42. Figure 3 overleaf identifies a number of
of the hydrogen fuel. Equally, lifecycle
areas in the UK which have the potential to
emissions are an important consideration
act as demand or supply hubs for low- or
in other fuels, not listed above, which are
zero emission propulsion options. These
generated with a substantial proportion
areas are based on preliminary research
of fossil fuels (e.g. ‘efuels’44 and liquefied
undertaken for the Clean Maritime Plan.
natural gas (LNG)).
Further work is required to identify potential
41. Markets for many of the technologies in UK geographical clusters for clean maritime
Figure 2 are largely nascent at present, technologies.
1. The Case for Action: Tackling Emissions and Capturing Clean Growth Opportunities 15Figure 3: Areas of potential demand and supply for clean maritime technologies
Western Isles Orkney Islands
Potential hub for Potential hydrogen
production of powered ferry
green hydrogen
Aberdeen
Potential energy
demand cluster
Inner Hebrides Teeside
Hybrid ferry Potential hub
in operation for hydrogen
Land-side Infrastructure
generation
Wind Farm Production Site / Port Vessel
(electricity production and delivery) (hydrogen production and dispensing) (fuel utilisation)
Hydrogen
Pipeline
Hydrogen
or Pipeline
Teesport & Immingham
Electricity
Cable
Electrolyser(s) Storage Tanks & Dispensing Onboard Fuel /
WTGs & Balance of Plant
LNG bunkering
(H2 production) Compressors Equipment Storage HICE
Natural gas
facilities available
Liverpool – Manchester
Potential deployment Oxfordshire
of hydrogen in the Potential hub
gas network for ammonia
synthesis
KEY
Demand
Supply
Southampton Isle of Wight
LNG bunkering Hybrid ferry
facilities available in operation
16 Clean Maritime Plan43. Scandinavian countries, particularly Norway into green shipping technologies. Most
and Sweden, have been frontrunners recently, China has committed to enforce
in sustainable shipping and the use of the IMO global 0.5% sulphur cap around
alternative fuels. In Norway a NOx levy its territorial waters in 2019, one year
and fund have been in place for over 10 ahead of the agreed implementation date
years, which has funded NOx abatement of January 202047.
measures such as selective catalytic
44. Research commissioned by the
reduction (SCR) and engine modification
Government has assessed the UK’s
onboard ships45. Norwegian partners are
competitiveness across 11 key maritime
currently building Project ZEFF, a Zero-
emission reduction options, and found that
Emission Fast Ferry designed to carry up to
the UK has strengths which may allow it to
300 passengers, which will be powered by
compete in a range of markets, particularly
hydrogen and batteries with a cruise speed
in those which relate to low or zero carbon
of 25–45 knots using hydrofoils46. Countries
fuels48. 49
across Asia are also making early moves
Figure 4: Potential annual future global market for maritime emission reduction options49
2020s 2050s
Fuels production
£0 £8,000 – 11,000
technologies
Low-carbon shore £100 £~100
power technologies
Onboard hydrogen £0 £0
technologies
Onboard £0 – 100
£700
batteries
Electric £100 £0 – 400
propulsion
Air £1,700 £1,900 – 2,600
lubrication
Wind £300 £1,900 – 2,100
propulsion
EGR & SCR engine £900 £400 – 600
exhaust technologies
Annual global market potential in
GBP million per year. 2016 prices
Source: Frontier Economics for DfT
1. The Case for Action: Tackling Emissions and Capturing Clean Growth Opportunities 1745. In particular, the research estimated that of hydrogen fuel in the global fleet. If
the global market for the elements of policies and incentives are in place to
alternative fuel production technologies50 in move towards zero emission shipping
which the UK has a particular competitive by the middle of the century, hydrogen
advantage (for example, upfront design) fuel usage may increase or remain low
could rise to around $11–15 billion per year depending on future cost effectiveness.
(£8–£11 billion per year) by the middle of However, hydrogen production
the century, and that if the UK were able technologies are an important input to
to maintain its current export market share ammonia and in some cases methanol
(which is estimated to be around 5% of the fuel which may have substantial
relevant global markets), this could result expected take-up.
in economic benefits to the UK of around
●● Ammonia production technologies: The
$490 - 690 million per year (£360–£510
UK also has a strong competitive position
million per year) by the middle of the
in relation to ammonia production
century51.
technologies. In particular, the UK has a
46. Figure 4 visualises the estimates of the strong domestic position for ammonia
potential annual global market size for catalyst supply, and ammonia-based
the different maritime emission reduction fertiliser is produced in volume in the UK.
options assessed in the research. This is important because catalyst supply
is a high-value part of the supply chain.
47. More specifically, the research identified
The current take-up of onboard ammonia
hydrogen and ammonia production
fuel technologies is relatively low so this
technologies as offering the most
is a nascent market at present.”
significant potential economic benefits
to the UK. The reasoning for this was as The Clean Maritime Plan: A Route Map
follows:
48. Recognising the international imperative to
●● Hydrogen production technologies: move to zero emission shipping, the need
“The UK is well placed in relation to to have a holistic approach to tackling all
hydrogen production technologies. The forms of maritime emissions to air, and
UK’s extensive experience in natural the potential economic opportunities
gas and reformer technologies would associated with the global transition to
be a key advantage here. In addition, alternative propulsion, Maritime 2050
the UK is already a world leader in articulated the Government’s ambition to
electrolysis activities, which are directly actively drive the transition to zero emission
relevant to hydrogen production for shipping in its waters, as follows.
zero emission shipping. It is estimated
“In 2050, zero emission ships are
that the UK currently has around a 9%
commonplace globally. The UK has taken
global export market share of reformer
a proactive role in driving the transition to
and CCS technologies, which are likely
zero emission shipping in UK waters and is
to be important elements of hydrogen
seen globally as a role model in this field,
production for zero emission shipping.
moving faster than other countries and
Both China and the USA currently have
faster than international standards. As a
market shares in excess of 10% in this
result, the UK has successfully captured
area.” There is currently no take-up
18 Clean Maritime Plana significant share of the economic, ●● Be innovative: in line with the
environmental and health benefits government’s commitment to raise
associated with this transition.” spending on R&D, increase support
for innovation throughout the maritime
49. Maritime 2050’s environment chapter
technology life-cycle.
outlines the need for a co-ordinated
approach across government, industry and ●● Take a systems approach: policies
academia to reach this vision. It recognised should consider the whole supply chain,
the following principles as a foundation for including infrastructure and linkages with
achieving this vision. other sectors of the economy (e.g. power
networks and hydrogen supply).
●● Move quickly: the need for action to
reduce the environmental impacts of ●● Collaborate: government, industry and
the maritime sector is urgent and the academia need to work more closely
transition must take place rapidly. together and form lasting partnerships.
●● Be bold: the UK will lead by example, 50. The Clean Maritime Plan is a national action
positioning itself as a world leader plan to drive the UK towards the vision for
in thinking and action on minimising zero emission shipping. Shaped by the
environmental impacts of the maritime principles above, it sets out a pathway
sector. which encourages fast, bold action, playing
to the UK’s competitive advantages. It aims
●● Play to our strengths: prioritise
to assist in giving business certainty over
interventions which benefit the UK,
the future policy landscape, and seeks to
addressing market failures and amplifying
shape public interventions bearing in mind
investment in areas where the UK has
the need for a systems approach. The
potential comparative strengths.
Plan seeks to support innovation in the
●● Reduce business risk: give consistent maritime sector and is underpinned by a
and strong support for investment in collaborative approach, having been guided
the transition to green shipping. Deliver by extensive consultation, research and
proportionate, well-evidenced regulation, advice from industry through, for instance,
while maintaining a level playing field. the Clean Maritime Council.
1. The Case for Action: Tackling Emissions and Capturing Clean Growth Opportunities 192. Our Approach
51. Work to develop the Clean Maritime greenhouse gases and air pollutants from
Plan began in March 2018, with a public shipping in parallel.
consultation on the Maritime 2050
52. The Clean Air Strategy, published in
strategy. Published in January 2019,
January 2019, sets out the Government’s
Maritime 2050 is the Government’s vision
plans to address air pollution across the
for the future of the Maritime sector52.
UK, setting out the comprehensive actions
The strategy’s ambitions are focused into
needed across all parts of government and
seven themes, highlighting how every part
society to improve air quality53. The strategy
of the maritime sector has a role to play
contains three significant commitments
in securing a strong future. Environment
for the maritime sector, to be published in
is a key theme of Maritime 2050, and is
2019, in line with the Clean Maritime Plan:
broken down into four sub-themes: Zero
Emissions Shipping; Minimising Wider ●● A Call for Evidence to explore the
Environmental Impacts from Shipping; emissions from vessels operating
Adapting to Climate Change, and the domestically within the UK, including
continuing role of International Leadership. inland waterways. The aim of this work
The Clean Maritime Plan is a route-map of is to collect a body of evidence that
the Maritime 2050 strategy, focused on the will give a clearer picture of the extent
issue of Zero Emissions Shipping, exploring of emissions from domestic and inland
how the UK can address emissions of waterway vessels.
20●● A consultation on options for extending over 85 key industry stakeholders, helping
the North Sea Emissions Control ensure that the Plan brings in the varied
Area beyond its current geographical views from across sector. To complement
limits or options to establish further, this consultation, the Government also
geographically discrete Emissions commissioned a package of economic and
Control Area’s in UK waters. These technical research to provide a detailed
options will aim to extend limits on SOx evidence base for the Clean Maritime Plan.
and NOx emissions provided under This research is available online55.
international law in order to contribute to
54. The following sections of the document
improving air quality in the UK.
set out the key policy commitments of the
●● Guidelines to advise ports on how Clean Maritime Plan in more detail. Based
to develop effective and targeted on analysis of feedback from the Clean
Air Quality Plans. These Plans will Maritime Council, policy is broken down
set out commitments by individual into four main areas:
ports to reduce emissions from their
●● Economics
operations and to support the reduction
of emissions from their customers. ●● Infrastructure
Following publication on these
●● Innovation
guidelines, ports within scope will be
asked to make initial commitments by ●● Regulation
31 December 2019 and to produce their
55. Policy commitments are set out in
plans in June 2020.
each area, alongside key elements of
53. The Clean Air Strategy also includes consultation feedback and relevant
a further commitment to publish the findings from economic and technical
Clean Maritime Plan, and to establish research. Finally, there follows a mapping
a Clean Maritime Council. The Council exercise highlighting the links between
was launched by Minister Nusrat Ghani the policy commitments of the Clean
in October 201854. A strategic advisory Maritime Plan and the recommendations
body made up of industry representatives, in Maritime 2050.
academics and key government
departments, the Council has played a Governance
vital role in reviewing and developing the
56. The policy commitments of the Clean
Clean Maritime Plan. The Council formed
Maritime Plan will be implemented over the
three ‘Task and Finish Groups’, drawing
coming years, with advice from the Clean
representation from beyond its core
Maritime Council, which may draw on wider
members. These ‘Task and Finish Groups’
stakeholder views. The Council will keep
were focused on the topics of Incentives,
oversight of progress against the policy
Standards and Regulations, and Energy
commitments and ambitions.
Systems Integration. The work of these
three groups was fed back to the main 57. The Government will publish a review of
Council and presented at a large industry implementation of the Clean Maritime Plan
workshop held in March 2019. The Clean in 2022. At this stage, the operation of the
Maritime Plan workshop was attended by Clean Maritime Council will be reviewed.
2. Our Approach 2158. While the Clean Maritime Plan deals monitored through the wider Maritime
only with those Maritime 2050 2050 reporting process. This Annual
recommendations relating to zero Report will also report on progress against
emission shipping, the other environmental those recommendations of Maritime 2050
recommendations of Maritime 2050 which fall outside the scope of the Clean
are also of key importance. Progress Maritime Plan.
against these recommendations will be
22 Clean Maritime Plan3. Economics
The Role of Targets ●● Government will work to ensure
maritime greenhouse gas emissions
59. The Government’s Maritime 2050 Strategy are appropriately taken into account
contained the following commitments: in national and international emission
●● Government will consider the merits reporting. The government will carefully
of introducing a medium-term target consider the CCC’s advice on the
for emissions of GHGs and air quality inclusion of international shipping within
pollutants from UK shipping. Further carbon budgets. Further information on
detail on this consideration will be set out the Government’s plans will be set out in
in the Clean Maritime Plan. the Clean Maritime Plan.
●● Government will consider the 60. UK domestic policy relating to emissions
introduction of a target to reduce of GHGs from the maritime sector is based
emissions of GHGs and air quality around the Climate Change Act 2008,
pollutants from UK shipping towards which requires that the UK contributes to
zero. Further details on the government’s global emission reductions by reducing UK
long-term plans to reduce emissions GHG emissions by at least 80% of 1990
from UK shipping, will be set out in the levels by 2050. In order to meet this target,
Clean Maritime Plan, taking into account the Government has set five-yearly carbon
the IMO’s 2050 GHG target. budgets which currently run until 2032.
23These restrict the amount of GHGs the UK the most ambitious measures to deliver
can legally emit in a five-year period. the vision, and emission reduction targets,
of the IMO GHG Strategy. The UK will
61. At present, emissions from domestic
continue to advocate strongly at the IMO
shipping are included in both the existing
for the most ambitious measures to deliver
carbon budgets and current 2050 target.
the vision, and emission reduction targets,
Although emissions from international
of the IMO GHG Strategy. Government
shipping are not currently included in the
will keep our approach to the inclusion
UK’s targets under the Climate Change
of international shipping and aviation
Act, our carbon budgets put the UK on
emissions in our legislation under review,
a trajectory consistent with a 2050 target
taking account of progress in the IMO and
which includes these emissions.
ICAO.
62. On 2 May 2019, the Committee on Climate
64. In relation to regulations for domestic
Change published its report ‘Net Zero:
shipping, following publication of
The UK’s Contribution to Stopping Global
Maritime 2050, Government has
Warming’. This recommended that the
commissioned research which indicates
UK should legislate as soon as possible to
that the introduction of targets for maritime
reach net-zero greenhouse gas emissions
emissions can act as a useful signal of
by 2050. The Committee also advised that
the direction of emissions policy56. As
this revised target should cover all sectors
well as raising public awareness, this
of the economy, including international
research identified that targets can provide
shipping.
additional certainty to firms (both in the
63. In June 2019, the UK became the first maritime sector and related sectors) to
major economy to legislate for net zero inform their investment decisions, and
emissions, setting a target for 2050. contribute to addressing the barriers to
Although emissions from international reducing shipping emissions, such as “by
shipping and aviation are not formally encouraging owners to take a longer-term
included within the legislation at this point, view of their assets and investments”.
it is essential that these sectors play
65. The extent to which targets may bind
their role. To ensure we are on the right
market participants depends on the
trajectory for net zero emissions across
regulations which underpin them. However,
the economy, we will continue to leave
it is clear that targets are necessary in order
‘headroom’ for international shipping and
to support an effective domestic regulatory
aviation emissions in our carbon budgets.
environment. Following stakeholder
Since the 1997 Kyoto Agreement on
feedback during the development of the
climate change, international shipping and
Clean Maritime Plan, it was established that
aviation emissions have been dealt with
further consultation would be required to
via the IMO and ICAO respectively. This is
determine the exact nature of any binding
important given the global nature of these
target. The section below on the role of
industries. Government continues to be
economic instruments sets out how such
of the view that action to tackle emissions
consultation may be taken forward.
from these sectors must be done globally
to be effective. The UK will continue to take 66. In the absence of any mandatory targets,
a leadership role at the IMO, pushing for however, consultation to-date has indicated
24 Clean Maritime Planthat the market may benefit from further generation of hydrogen, methanol and
policy certainty regarding the future fuel and ammonia is estimated to be more cost-
technology mix required in a zero-emission effective using fossil fuels (with carbon
world. capture and storage) rather than via
electrolysis58.
67. To assist in providing some clarity,
the Government has commissioned ●● LNG is not estimated to be a substantial
research57 to investigate the likely take-up part of the fuel mix in the future (whether
of technologies and alternative fuels, and near future, around 2035, or longer-term,
the associated costs, under a number of around 2050) under any scenarios that
different future scenarios. This research achieve the reductions in GHGs required
does not represent policy decisions. It by the IMO GHG Strategy
seeks only to identify possible future
●● Electricity is estimated to play a much
technology mixes in different scenarios
smaller role than that of alternative fuels,
under changing assumptions about policy
with electric propulsion take up limited
and the availability of alternative fuels.
to vessels that operate short voyages,
Nevertheless, certain conclusions can be
such as short ferry crossings. Whilst its
drawn from this research. In particular:
use is expected to be more significant
●● Certain categories of vessel traffic are for the UK domestic fleet than the UK
estimated to be particularly significant international fleet, it is still estimated
contributors to UK shipping emissions. to remain relatively small under all
For example, container vessel traffic scenarios. This conclusion is sensitive,
is estimated to make the highest however, to current cost assumptions,
contribution to UK international shipping such as regarding the capital cost of
GHG emissions, while ro-ro vessel batteries.
traffic is estimated to be the highest
●● Whether or not shipping has access
contributor to UK domestic shipping
to biofuels is not estimated to result
GHG emissions.
in a significant difference in the costs
●● In order to achieve the reductions to business of delivering the reduction
in GHGs required by the IMO GHG in GHGs required by the IMO GHG
Strategy, it is estimated that energy Strategy.
efficiency improvements alone will not be
68. This last point is relevant given the need to
sufficient and that the use of alternative
ensure, across the economy, the optimal
fuels (such as hydrogen, ammonia or
use of limited feedstocks of sustainable
methanol) will be required.
bioenergy supply. The most recent advice
●● Under the assumptions made in the from Government’s independent advisory
research, ammonia is estimated to be body, the Committee on Climate Change,
more cost-effective than methanol or suggests that the use of biofuels should
hydrogen for most ship types. However, be directed towards those sectors which
there is substantial uncertainty around faces the hardest challenges to abate
this result, so it is not possible to reach emissions59. The extent to which biofuels
definitive conclusions on this at present. may play a role in decarbonising the
In addition, under these assumptions, maritime sector will need to be considered
3. Economics 25You can also read
