Responsible for transporting over 80% of the world's goods, the shipping industry plays a key role in global trade. However, contributing 3% of GHG emissions and now subject to the Emissions Trading System (ETS), which imposes caps on the sector's carbon emissions, the maritime industry now faces increasing pressure to reduce its carbon footprint.
At CFP Energy, we help you navigate your shipping emissions compliance obligations with Renewable Energy Certificates (RECs), carbon credits, and cutting-edge biofuels. Contact us today to see how we can abate your emissions.
There is a range of factors currently driving the decarbonisation of shipping. Globally, the International Maritime Organisation (IMO) has set ambitious targets for greenhouse gas emission reductions. These include a target to reach Net Zero by 2050, with key milestones set for 2030 and 2040.
Regional regulations, meanwhile, are creating further incentives. The European Union’s Emissions Trading System (ETS), for instance, now includes maritime transport, imposing carbon costs on vessels operating to and from EU ports, with financial penalties for non-compliance.
More broadly, under Environmental, Social, and Governance (ESG) guidelines, the maritime sector faces increasing pressure to accurately report decreased emissions and realistic climate targets, both from external and internal stakeholders, as well as the public.
Decarbonising shipping requires a multi-stranded approach. These include the adoption of biofuels (and their associated feedstocks), the optimisation of operations, as well as the implementation of energy-efficient systems, such as secondary propulsion systems.
Biofuels are fast becoming a sustainable alternative to traditional maritime fuels. Providing significant reductions in CO₂ emissions and particulate matter, biofuels aid compliance with maritime-specific emissions regulations, such as IMO 2020 and the EU ETS.
A further advantage of biofuels is their versatility. Biofuels like Hydrotreated Vegetable Oil (HVO) and Fatty Acid Methyl Esters (FAME), for instance, can be blended with conventional fuels and used in existing vessels, without the need for engine modification or redesign.
Improving vessel energy performance provides substantial emission reduction opportunities. Various technological approaches are available.
Wind-assisted propulsion systems harness renewable energy to supplement traditional engines. These include rotor sails and rigid sail configurations. Advanced hydrodynamic hull designs can reduce drag significantly. This lowers overall power requirements.
Chartering tools can also help reduce emissions. Through advanced applications, such as AI-powered voyage optimisation, shipping operators can optimise routes. This not only helps navigate poor and hazardous conditions but also improves speed.
Digital tools, such as IoT-based sensor data, can also help monitor and manage fuel use, shortening the length of time it takes to refuel. In this way, operational improvements can still be found even after the switch to sustainable fuels has been made.
For decarbonisation in shipping, as this article has shown, there are numerous promising solutions ready for implementation.
However, targeted implementation will require proper planning. Next-generation fuels like ammonia and hydrogen, for instance, are likely to need extensive new infrastructure. This includes specialised refuelling networks and storage facilities across major shipping routes.
The maritime industry's long asset life cycles must be taken into account when planning long-term. Vessels typically operate for 25-30 years. This may slow the adoption of new fuel technologies across the global fleet.
In the near term, drop-in biofuels provide a practical solution. Fuels like HVO and FAME, for example, work with existing engines. This creates an ideal transition pathway to developing low carbon infrastructure long term.
Decarbonisation in shipping, although hindered by numerous challenges, remains essential. As a high emitter, shipping decarbonisation, from operational streamlining to the adoption of sustainable fuels, is a crucial part of reducing global carbon emissions and meeting Net Zero.
At CFP Energy, we provide detailed insights into alternative fuel markets, helping clients understand the viability, costs, and supply chain implications of advanced biofuels. Our team offers comprehensive support in navigating complex compliance frameworks like the EU ETS and other supranational mandates. Contact us today to start decarbonising your fleet.