The global shipping industry is struggling to meet the target of green fuels accounting for 5% of all fuel by 2030. This conclusion comes from a recent report by UCL Energy Institute, the UN High-Level Climate Champion’s Group, and the Getting to Zero Coalition.
This alarming finding serves as a wake-up call for an industry that contributes approximately 3% of global greenhouse gas emissions.
The report titled “Shipping’s Breakthrough Progress Towards 2030” indicates that most participants in the maritime ecosystem are moving too slowly to achieve internationally agreed targets. The International Maritime Organization (IMO) set this critical 5% target in 2023 as a tipping point for exponential growth in zero-emission fuel adoption. Specifically, the IMO’s greenhouse gas strategy requires “at least 5%, and aiming at 10%, of the energy used by international shipping to be from zero or near-zero emission technologies, fuels, and/or energy sources.”
“To achieve large-scale uptake of such fuels by 2030 is still possible, but it will require major and immediate action from policymakers, fuel suppliers, and the shipping industry in the next 12 months,” said Dr. Domagoi Baresic, a researcher at UCL Energy Institute.
The report shows that out of the 35 actions needed to achieve the 2030 target, only eight are considered “on track,” while 13 are “off track,” an increase from last year’s assessment. The report highlights three key concerns:
1. Supply: Current production levels of scalable zero-emission fuels (SZEF) can cover less than half of what is needed for the 2030 target.
2. Demand: Existing orders for ships with SZEF capability only meet about 25% of the required demand by 2030.
3. Funding: Growth in funding for SZEF-related activities has slowed, while more funds are flowing to vessels using fossil fuels.
“We don’t have time to waste; we must see a significant shift in momentum within the next 12 months to achieve our 2030 goals,” emphasized Jesse Fahnestock, Decarbonization Lead at the Global Maritime Forum.
Despite these challenges, the report suggests that reaching this target is still possible with increased efforts. The shipping industry now needs to intensify its efforts to align with the 1.5°C climate transition goal.
With global trade expected to quadruple by 2050, the report serves as both a warning to all stakeholders and a call for urgent decarbonization in the shipping sector.
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Source: gCaptain
