Shipping's Zero-Emission Fuel Goals at Risk
PORTS & SHIPPING

Shipping's Zero-Emission Fuel Goals at Risk

The global shipping industry is falling short of its target to have zero-emission fuels make up 5% of international shipping fuels by 2030, posing a threat to its 2050 decarbonisation objective, as revealed by a recent analysis. The assessment, unveiled at the Global Maritime Forum's annual summit in Athens, indicates that the current scalable zero-emissions fuel (SZEF) production in the pipeline would only cover a quarter of the required fuel by 2030.

Furthermore, the delivery of zero-emission vessels is lagging. By the end of 2022, there were 24 ships capable of running on SZEF, primarily methanol, with another 144 on order. However, current orders amount to just one-fifth of what is necessary to meet mid-term goals, according to the report, conducted by the UMAS consultancy, which includes experts from the University College London Energy Institute.

Kathryn Palmer, the shipping lead of the U.N. COP Climate Champions, emphasised that the current progress is insufficient in terms of scale and pace, underscoring the need for demand and supply actors to collaborate on implementing specific solutions.

Global shipping is accountable for approximately 3% of the world's greenhouse gas emissions resulting from human activities. The International Maritime Organisation revised its greenhouse gas strategy this year, setting a 5% target while also urging the industry to aim for 10% zero-emission energy in international shipping fuels by the end of the decade. Achieving this goal would require about 5.3 million metric tons of hydrogen, 29.8 million metric tons of ammonia, or 28.1 million metric tons of methanol by 2030. The industry is estimated to have to invest approximately $40 billion annually in SZEF bunkering and production.

The global shipping industry is falling short of its target to have zero-emission fuels make up 5% of international shipping fuels by 2030, posing a threat to its 2050 decarbonisation objective, as revealed by a recent analysis. The assessment, unveiled at the Global Maritime Forum's annual summit in Athens, indicates that the current scalable zero-emissions fuel (SZEF) production in the pipeline would only cover a quarter of the required fuel by 2030. Furthermore, the delivery of zero-emission vessels is lagging. By the end of 2022, there were 24 ships capable of running on SZEF, primarily methanol, with another 144 on order. However, current orders amount to just one-fifth of what is necessary to meet mid-term goals, according to the report, conducted by the UMAS consultancy, which includes experts from the University College London Energy Institute. Kathryn Palmer, the shipping lead of the U.N. COP Climate Champions, emphasised that the current progress is insufficient in terms of scale and pace, underscoring the need for demand and supply actors to collaborate on implementing specific solutions. Global shipping is accountable for approximately 3% of the world's greenhouse gas emissions resulting from human activities. The International Maritime Organisation revised its greenhouse gas strategy this year, setting a 5% target while also urging the industry to aim for 10% zero-emission energy in international shipping fuels by the end of the decade. Achieving this goal would require about 5.3 million metric tons of hydrogen, 29.8 million metric tons of ammonia, or 28.1 million metric tons of methanol by 2030. The industry is estimated to have to invest approximately $40 billion annually in SZEF bunkering and production.

Related Stories

Gold Stories

Next Story
Resources

Schindler named among Forbes’ World’s Best Employers 2026

Schindler has been named among Forbes’ World’s Best Employers 2026, a global ranking recognising companies for their workplace environments.Compiled by Forbes in partnership with Statista, the ranking is based on independent employee feedback, including whether employees would recommend their organisation to friends and family.The company said the recognition reflected its focus on creating a workplace where employees can develop their expertise and build careers. ..

Next Story
Infrastructure Urban

India needs an export-execution mindset: Vishesh Jain

Interview with Vishesh Jain, Founder & CEO, EximpleWhat gaps in India’s global trade ecosystem led you to build Eximple, and what problem did you see businesses struggling with most?Eximple came out of a problem that all three founders had seen from different choke points in the trade ecosystem. India has millions of MSMEs and manufacturers, and many of them can make products that are genuinely competitive on quality. Yet only a small fraction is able to build meaningful international businesses. In our experience, the gap is usually not manufacturing capability; it is the ability to exe..

Next Story
Building Material

Nuvoco reports 13.5% revenue growth in Q2 FY27

Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid re..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code