The maritime industry is undergoing a profound transformation as the global push for decarbonisation intensifies. With international trade heavily dependent on shipping, the sector's impact on climate change has become a critical issue, driving regulators, industry leader and technology innovators to adopt strategies aimed at reducing greenhouse gas emissions. In this latest report on maritime decarbonisation from leading expert in assurance and risk management DNV, they present a complex landscape of technological innovations, regulatory frameworks and industry-wide transformations that will shape the future of maritime decarbonisation till 2050.
A crucial driver of decarbonisation in shipping is the evolving regulatory framework designed to limit greenhouse gas (GHG) emissions from ships. As the world moves toward the 2050 decarbonisation targets, international and regional regulations are increasingly shaping the future of the industry.
At the forefront of this regulatory push is the International Maritime Organisation (IMO), which has set an ambitious goal of a 40% emissions reduction by 2030, a 70% reduction by 2040 and full-scale decarbonisation from international shipping by 2050. The IMO's Initial GHG Strategy, adopted in 2018, outlines measures aimed at achieving full decarbonisation within the industry. This includes short-, medium-, and long-term actions such as improving vessel energy efficiency, the development of new low-carbon technologies and the adoption of carbon-neutral marine fuels. Knut Ørbeck-Nilssen, CEO of DNV predicts that “Decarbonising shipping will come at a cost. Maritime Forecast to 2050 estimates that to achieve the IMO’s final and intermediate reduction ambitions in well-to-wake emissions, costs per tonne-mile could increase significantly compared to business-as-usual. Increased freight rates will have to be passed through the value chain, with consumers likely to pick up most of the tab”.
Beyond IMO initiatives, several regions are introducing their own maritime decarbonisation regulations. The EU's FuelEU Maritime Regulation (Regulation (EU) 2023/1805), set to take effect in 2025, will require ships to meet specific well-to-wake GHG intensity standards for the energy they use annually, pushing them toward low-GHG fuels. A key feature of this regulation, which is also being discussed by the IMO, is the option to pool compliance. This means ships from the same or different companies can collectively meet the GHG intensity target, rather than each ship having to individually comply. This pooling approach could encourage shipowners to invest in alternative fuel technologies, as they can earn income from ships that contribute to the pool's compliance. Additionally, the introduction of carbon pricing mechanisms and the kick-off of the EU Emissions Trading Scheme (EU ETS) emission trading systems for shipping is becoming a key strategy for incentivising the industry to adopt greener technologies.
The decarbonisation of the maritime industry is also being propelled by emerging technologies in ship design and operation. To meet decarbonising maritime transport goals, shipping companies are exploring a range of innovations aimed at enhancing energy efficiency and reducing emissions:
The development of energy-efficient ship designs: Modern ship designs focus on reducing hydrodynamic drag, incorporating lightweight materials and optimising hull forms to minimise fuel consumption. For example, the use of air lubrication systems and rotor sails has shown potential in significantly reducing fuel use by improving ship propulsion efficiency.
Advancements in digitalisation and automation: These advancements are enabling real-time monitoring of ship performance, optimising routes and reducing idle time in ports, which in turn lowers fuel consumption and emissions. Technologies like autonomous shipping and artificial intelligence (AI) are also gaining traction, offering the potential for more precise energy management and improved safety.
Retrofits and green shipping technologies: These are providing existing fleets with options to become more environmentally friendly. The installation of energy-saving devices (ESDs), advanced propellers, and exhaust gas cleaning systems (scrubbers) are all technologies aimed at extending the life of vessels while complying with emission reduction requirements.
Ports play a pivotal role in supporting the decarbonisation of maritime transport. As critical hubs in the global supply chain, ports are increasingly adopting strategies to minimise their carbon footprint and support greener shipping practices. Several ports are now investing in green infrastructure, such as wind and solar energy projects, which provide renewable energy for port operations and further reduce GHG emissions. Furthermore, the modernisation of port logistics using smart technologies and digital platforms is improving efficiency, reducing congestion and lowering emissions associated with cargo handling.
Collaborations between ports, shipping companies and governments will be essential in achieving global decarbonisation goals. Two months ago, members of Tunley Environmental were at the American Great Lakes Ports Association (AGLPA) 2024 Annual Conference which took place in Chicago from August 8th to 9th. Sustainability expert Dr Robert Moorcroft delivered a session on the Port of Detroit's new decarbonisation and air quality improvement plan along with Mark Schrupp, Executive Director - Detroit / Wayne County Port Authority at the conference. Read his full insight on how ‘Port Decarbonisation Enhances Sustainability in the Maritime Industry’.
Visit the Port of Detroit Project page to see their sustainability efforts to reach net zero by 2040.
A critical component of achieving decarbonisation targets by 2050 is the transition to low-carbon and zero-emission marine fuels. The current reliance on heavy fuel oil in shipping is unsustainable, and the industry is actively exploring alternative fuels that can meet energy demands while significantly reducing emissions.
Liquefied natural gas (LNG) has emerged as a transitional fuel due to its lower carbon intensity compared to traditional marine fuels. However, the focus is shifting toward more sustainable fuels, such as ammonia, hydrogen, and biofuels, which offer the potential for near-zero emissions. Currently, 1,239 LNG-capable ships are operational, with 832 more on order.
Methanol and LPG (Liquefied Petroleum Gas) are emerging as alternative fuels, with 0.09% of world fleet tonnage using methanol, but a significant 9.68% of new orders for methanol-fuelled ships, especially in the containership sector.
Ammonia is seen as a promising zero-carbon fuel due to its high energy density and the fact that it produces no CO2 emissions when burned. However, challenges remain regarding its storage, handling and the development of an ammonia-fuelled engine.
Hydrogen, another potential solution, offers the advantage of being a clean fuel with water as its only byproduct when used in fuel cells. Although hydrogen faces obstacles in terms of production and infrastructure, ongoing research and development are expected to make it more viable in the coming decades.
Biofuels are also gaining traction, particularly as a short-term solution for reducing carbon emissions. Derived from renewable biological sources, biofuels can be used with minimal modifications to existing ships, making them a practical option for many shipping companies.
The economic implications of maritime decarbonisation are far-reaching. While the transition to greener practices will involve significant investments in new technologies, ship designs and alternative fuels, it also presents substantial opportunities for cost savings and economic growth. Position your maritime operations towards a greener future by exploring how our Port Sustainability Services can help you reduce emissions and implement sustainable practices.