To hit its mid-century decarbonisation targets, the maritime industry needs commercially viable zero-emission vessels operating on deep-sea trade routes by 2030. Produced by the Energy Transitions Commission for the Getting to Zero Coalition, a new report identifies five key actions as shipping’s ‘first movers’ look to test new technologies and business models.
Produced for the Getting to Zero Coalition, today’s report identifies the barriers to the early adoption of zero-emission technologies throughout the entire energy value chain. More importantly, it calls attention to five key actions that first movers can take to make tangible progress towards zero emission pilots over the next three to four years:
1. Join forces to fast-track technology trials and regulatory approvals
2. Choose pilot locations that offer privileged access to low-cost renewable electricity
3. Seize opportunities to repurpose and retrofit existing infrastructure and assets
4. Co-invest in critical equipment such as bunkering assets and vessels
5. Form consortiums with key value chain actors to establish voluntary offtake agreements and distribute cost across the value chain to the end-consumer.
To deploy zero emission vessels globally, new and existing stakeholders will need to work together in creating a new green shipping value chain, as part of lowering their initial investment and operational costs. Offsetting higher costs with a green fuel premium could be part of the solution, as Faustine Delasalle, Director of the Energy Transitions Commission, explains.
“The economics of zero emission shipping will depend massively on the cost of zero emission fuels. Commitments from cargo owners to procure ‘green shipping’ services at a premium price will be crucial to unlock a first wave of commercial scale projects. A combination of tactical corporate decisions reducing fuel costs, enhanced public support to investment, and collaborations across the maritime value chain can also boost the commercial viability of zero-emission shipping for first movers.”
