Sep 29, 2022
This year’s World Maritime Day focuses the maritime sector towards new technologies for greener shipping.
The shipping industry is a keystone for the modern economy, providing transport for international goods and people, access to supplies, jobs and more. But when it comes to climate change, the maritime industry poses a significant problem.
It is a substantial contributor to climate change – responsible for nearly 3% of worldwide greenhouse gas (GHG) emissions. Burning fossil fuels to power our global merchant fleet produces one billion metric tonnes of carbon dioxide annually – equivalent to the annual carbon emissions of Japan. The maritime industry has been slow to decarbonize, so much must be done to move the sector towards a sustainable future. Existing highly competitive, low-margin markets for industrial products discourage investment in zero or low-carbon innovations – especially if it increases costs. In developing economies, poor access to finance and inflated risk perceptions further inhibits progress.
Simultaneously, the maritime industry is economically important – international shipping transports over 80% of global trade to communities all over the world, creating prosperity and sustaining livelihoods of two million merchant seafarers.
Clearly a safe, secure, and efficient maritime industry is needed which means a sea change in thinking is required. The sector must invest in innovations required to rapidly decarbonize. Providing concessional financing and by working with low- and middle-income countries, the Climate Investment Funds (CIF), is committed to helping high-emitting industries like maritime shipping, change for the better.
CIF financing can support the piloting of technologies to help accelerate maritime decarbonization, which include powering ships with carbon-neutral fuels such as hydrogen, ammonia, or methanol - made from biomass.
Green hydrogen is also touted as a fuel to power shipping’s voyage to a greener future - it emits zero carbon when burned and is derived from water via electrolysis: a process that splits water into its constituent parts (oxygen and hydrogen). Providing the electrolysis process is powered by renewable energy, this fuel is clean. Trials on smaller craft such as ferries are taking place in Belgium and Japan.
Other innovations include onboard solar powered energy systems; an IMO trial on two ships reported 50% reductions in GHG emissions. Meanwhile, a device known as Propeller Boss Cap Fins, being piloted on a Fijian government ship, enhances propulsion efficiency resulting in lower emissions.
Changes to legislation such as mandating cleaner fuels usage or imposing carbon levies on shipping companies must also be explored, alongside new partnerships to share global knowledge. The Industry Decarbonization Program, a new CIF program, aims to catalyze deep behavioral change and sustained impact in high-emitting industries in middle-income countries. Highly concessional finance will be deployed to address barriers that hamper decarbonization efforts. This is all good news for the maritime industry.
This World Maritime Day is an opportunity to focus on the urgent need for a sustainable maritime sector. CIF is committed to being part of the solution providing access to finance, enhancing regulatory and policy frameworks, providing incentives to deploy innovative clean technologies, and developing firms’ capacity and skills.
