Decarbonizing Shipping: Challenges and Potential Solutions

The world's shipping industry faces challenges in achieving net zero carbon emissions by 2050 due to diverse vessel types and fuel availability concerns.

### Decarbonizing the World's Shipping Industry: Challenges and Prospects for Achieving Net Zero Emissions by 2050
* 🚢  The shipping industry is one of the most challenging sectors to decarbonize, accounting for about **three percent of the world's carbon emissions** and handling **90 percent of global trade by volume**.
* 🌍  The United Nations International Maritime Organization (IMO) aims for the sector to achieve **net zero emissions by 2050**, with new rules to facilitate this expected to be approved next year and enforced by **2027**.
* 💰  The cost and complexity of transitioning to low-carbon fuels pose significant challenges, with options like **methanol, ammonia, and hydrogen having various drawbacks**.
* ⛵  Some vessels are exploring high-tech sails, while liquified natural gas is a popular choice for certain ship types due to its **lower carbon emissions**.
* 🔒  Ship owners are concerned about investing in new technologies only to find a **lack of fuel supply** or face **unfair competition** from those still using traditional fuels.
* 😓  There are uncertainties about whether the IMO will establish **effective and comprehensive rules** that cover **all types of ships**.
* ✅  Despite the challenges, ship owners have already started to adjust their operations to reduce emissions, and vessels capable of using **ammonia or methanol** are being built in Asian shipyards. The future of clean shipping hinges on getting the **rules and incentives right**.

OK. So, Robert, what question 
are we pondering today? What are the chances the world's shipping 
industry can get its carbon emissions down to a net zero level by the target of 2050?
The business of moving cargo by sea is one of the very hardest human activities to decarbonise.
By volume, about 90 per cent of the world's trade moves by sea, and it creates about three per 
cent of the world's carbon emissions. This isn't a straightforward business.
There are some companies that own hundreds of container ships.
But even in international shipping, some of the companies are tiny.
There are still plenty of Greek families that own one or two dry bulk carriers or oil tankers.
Any means of decarbonising shipping has to work for both of those extremes.
Different ships work in different ways too. Those big container ships go around the world 
according to a timetable, in circles. If they have to switch to a new kind of fuel and 
that fuel is available somewhere in that route,

that's going to work for them.
But those Greek families’ bulk carriers, they're like taxis going wherever 
in the world they're needed. If they can't be sure the fuel they need is 
going to be available everywhere in the world, they're probably not going to use it.
The body in charge of making sure that everyone decarbonises is the United Nations International 
Maritime Organisation, based in London. It has said it wants the sector to 
be making a net zero contribution to atmospheric carbon by 2050.
It's also said it wants new rules to make sure that happens approved 
next year and in force by 2027. But it's not yet decided what 
those new rules should be. The sweeping fixes look expensive 
and hard to implement. Ships could be fuelled by methanol, which is 
expensive, ammonia, which is toxic, or hydrogen, which takes up vast amounts of space.
Lots of people are experimenting with sophisticated high-tech sails.
Liquified natural gas gives off less

carbon for each unit of energy.
That's proving a popular choice for some types of vessels.
Ship owners big worry is that they'll plump for a new technology only to 
find there's no fuel being made and their multi-million-dollar investment is useless.
And what if the rules aren't tough enough? No one wants to be paying the high prices 
that are expected for these new low-carbon fuels, which could well be four times the price 
of the existing hydrocarbons, and then find an unscrupulous competitor is undercutting 
them by still using the old product. There are certainly some 
reasons to be gloomy. It's still not clear that the International 
Maritime Organisation will come up with good, really robust rules that cover 
the full range of ships. On the other hand, ship owners have been paying 
for their emissions since January this year, whenever they arrive in a European port.
They say that's been changing the way they plan their voyages in order to reduce 
the amount of carbon they emit.

And ships ready to use ammonia or methanol as fuel 
are starting to come out of Asia's shipyards. The outlook for clean shipping 
remains in the balance. Put in rules with the right incentives 
and there's an excellent chance that shipowners will invest accordingly.
But botch that process, and there's a real risk that ships will continue to 
warm the planet for decades to come.

Curbing shipping’s emissions remains hugely challenging | FT Rethink

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Financial Times

Decarbonising the World's Shipping Industry by 2050

The world's shipping industry is responsible for about three percent of the world's carbon emissions and is challenging to decarbonize due to its diverse nature, with some companies owning hundreds of ships while others own just a few.

The United Nations International Maritime Organization, based in London, aims to make the sector carbon neutral by 2050, but the transition to new fuels and technologies poses significant challenges in terms of cost and implementation.

The use of expensive and potentially risky fuels like methanol, ammonia, and hydrogen, as well as the exploration of high-tech sail technology, are among the potential solutions being considered.

The Impact of New Low-Carbon Fuels on the Shipping Industry

New low-carbon fuels are a popular choice for some vessels, but ship owners are concerned about the availability of the fuel and the potential for high prices.

The expected cost of the new fuels could be four times higher than current hydrocarbons, leading to worries about undercutting by competitors.

Despite the gloomy outlook, some ship owners have been adjusting their voyage plans to reduce carbon emissions in response to paying for their emissions since January.

The Emergence of Ammonia and Methanol-Powered Ships

Asian shipyards are beginning to produce ships capable of using ammonia or methanol as fuel, signaling a shift toward cleaner shipping.

The future of environmentally friendly shipping depends on implementing the right incentives and regulations to encourage investment by shipowners.

Failing to do so could result in continued environmental damage from traditional fuel-powered ships for many years.