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

Distributing carbon revenues from shipping

The International Maritime Organization (IMO), the specialized United Nations agency responsible for international shipping, aims to reduce greenhouse gas (GHG) emissions from the shipping sector. International shipping accounts for approximately three percent of global GHG emissions. The Initial IMO GHG Strategy, adopted in 2018, aims to peak GHG emissions from international shipping as soon as possible, reduce them by at least 50 percent by 2050 over the 2008 levels, while pursuing efforts to phase them out on a pathway consistent with the Paris Agreement temperature goals. More ambitious GHG reduction targets are being discussed for inclusion in the revised strategy, which is expected to be finalized in July 2023. The IMO is currently negotiating the policy measures that must be adopted to meet GHG emissions reduction targets. Achieving the sector’s climate targets requires a policy environment that maximizes energy efficiency, supports the uptake of zero-carbon bunker fuels and technologies, and makes them cost-competitive with fossil-based fuels. In line with the Initial IMO GHG Strategy, climate negotiations at the IMO are focused on identifying additional measures (“mid-term measures”) to reduce GHG emissions from ships. Such measures could materialize as technical standards or market-based measures like carbon pricing instruments

Blowin\u27 in the wind? Drivers and barriers for the uptake of wind propulsion in international shipping

Abstract International shipping transports around 90% of global commerce and is of major importance for the global economy. Whilst it is the most efficient and environmentally friendly mode of transport, CO2 emissions from shipping activities still account for an estimated 3% of global emissions. One means of significantly reducing fuel consumption and thereby GHG emissions from shipping are wind propulsion technologies (i.e. towing kites, Flettner rotors and sails) – yet current market uptake is very low. Therefore, the aim of this article is to identify the barriers and drivers for the uptake of wind propulsion technologies. To this end, the theoretical approach of technological innovation systems is adopted. This approach combines structural system components with so-called system functions which represent the dynamics underlying structural changes in the system. The fulfillment of these functions is considered important for the development and diffusion of innovations. Based on newspaper and academic articles, online expert interviews and semi-structured interviews, the level of function fulfillment is evaluated, followed by the identification of structural drivers and barriers influencing function fulfillment. Third, the possibilities to influence these drivers and barriers are discussed

King Canute muses in the South Seas: Why aren’t Pacific Islands transitioning to low carbon sea transport futures?

Transition to low carbon sea transport is a logical response to the extreme dependency of the Pacific Islands region on imported fossil fuel, its significant vulnerability to the effects of climate change and the critical shipping needs of Pacific Island countries (PICs). Building on previous work in low carbon sea transport in the Pacific, this paper further considers the barriers to achieving such transition by assessing, through a ‘post-Paris Agreement’ lens, the Intended Nationally Determined Contributions (INDCs) submitted by PICs and contrasting these to the near total lack of investment and planning for low carbon transition in the transport sector with the parallel occurrence in the electricity sector where ~USD 2 billion of donor investment is deployed or queued despite electricity using only ~20% of fossil fuel across the region. Consistent with recent international studies, inadequate and inappropriate financing and policy have been identified as dominant transition barriers for low carbon sea transport development in PICs. This paper further examines the regional level barriers to policy development, and finds them inhibited by the silo nature of the major regional actors. The implications that the Paris Agreement has for climate financing to support the essential research and capacity development needed to underpin a successful low carbon sea transport transition strategy at any useful scale and speed are also considered in this paper