2022 starts with the takeaways from the COP26, and the main message for the industry is the need to accelerate energy transition in order to reduce CO2 emissions, and ultimately fight against climate change. Although there are several important initiatives attempting to decarbonize the industry, these need to be articulated across the sector: Port authorities, terminal operators, shipping lines, cargo owners, energy and technology providers, regulators, and every other industry stakeholder need to integrate their efforts into a unified roadmap.
One of the most relevant initiatives right now is the Getting to Zero Coalition, promoted by the Global Maritime Forum, which aims at bringing together key industry players to tackle the decarbonisation problem, and among its main directives is the development of ‘Green Corridors’. These would be trade routes where all parties involved would be carbon neutral. For these to succeed, however, it will be necessary: (1) corridor-level consensus on fuel pathways, (2) policy support to help close the cost-gap for higher-cost zero-emission fuels, and (3) value-chain initiatives to pool demand.
Amongst the most significant barriers to this, and all other energy transition programmes, is choosing what type of energy to transition to, and for which purpose: Powering vessels? ports operations? vehicles? Ammonia and hydrogen seem to be the long-term solution for the industry as they are both carbon neutral; by 2050 they are predicted to supply 60% of the market’s energyneeds. While hydrogen and ammonia are deemed as the fuels of the future, methanol and LNG are the alternative in the short-term.
The debate is far from over but what most industry stakeholders agree on is that the transition needs to start now.
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