Closing the Gap

Shipping is a cornerstone of global trade and, as such, the GHG emissions created by shipping are significant and rising, accounting for almost 3% of global anthropogenic emissions (Faber et al. 2020a). Recent projections suggest that by 2050, shipping emissions will increase by between 90-130% of 2008 emissions by 2050 (ibid.). However, in April 2018, the IMO adopted the Initial GHG Strategy which set the ambition to reduce total annual GHG emissions by at least 50% by 2050, while pursuing efforts towards phasing out GHG emissions this century as a matter of urgency, consistent with the Paris Agreement temperature goal. With emissions projected to rise and international targets having been set, the question becomes, how these targets can be met by shipping? // For international shipping to align with the IMO’s Initial GHG Strategy, zero-emission fuels would need to become the dominant fuel source by the 2040s, gradually phasing out current fossil fuels. However, there exists a significant competitiveness gap between incumbent fossil fuels and alternative zero-emission options. This gap is the result of the existence of market barriers and failures, availability issues, a relative lack of information and regulation on safety, as well as the price difference in the fuels, which in turn is driven by R&D, infrastructure, and investment requirements. Projections suggest that across the 2030s and 2040s, zeroemission fuels will be approximately double the price of conventional fuel at best (Lloyd’s Register & UMAS 2020). As a result, there is an urgent need for policy to close the competitiveness gap and ensure shipping meets its decarbonisation commitments. // There is a range of potential measures to promote decarbonisation in shipping, including economic instruments or MBMs, direct regulatory approaches, information policies, voluntary initiatives, and national and regional action. This report provides an overview of different policy measures to address maritime decarbonisation and to close the competitiveness gap while enabling an equitable transition. Fairness and equity aspects are emphasised by e.g. the Initial IMO GHG Strategy. Therefore, the viability of any IMO climate policy instrument depends to a large extent on how these aspects are considered and operationalised. // This report explains which policy options could help close the competitiveness gap and enable an equitable transition

Climate action in shipping: Progress towards Shipping’s 2030 Breakthrough

The principal objective of this report is to assess whether sufficient progress has been made within the outlined actions to reach 5% by 2030 and ensure continued momentum around the actions needing more support and attention. The justifications of outcomes for each action in terms of progress tracking are provided in the report Annex. The report reviews 5 system change levers; technology/supply, finance, policy, demand, and civil society, across 3 different types of actors; industry actors, national actors, and international actors, and ascertains whether the actions currently undertaken are in alignment with the breakthrough goal and if any should be modified and tracks progress between different unique actor groups regarding developments towards the 5% goal. This process also includes assessment of current targets, including addition of specific intermediate 2025 enabling goals

UK Domestic Shipping: Mobilising Investment in Net Zero

Recommendations on priority areas of focus are intended to contribute to the next iteration of the UK government’s Clean Maritime Plan: • Specific sectors of the UK maritime sector such as ferries, offshore service vessels and the offshore wind market present an opportunity for priority action and targeted measures • New sources of capital will be required to fund the industry’s decarbonisation transition • Institutional investors could be a viable source of funding with the appropriate government support • Specific funding mechanisms (illustrated through case studies) can help to overcome the barriers to investmen