Amid accelerating climate change consequences, member countries of the International Maritime Organization (IMO) adopted a revised greenhouse gas (GHG) strategy for shipping that sets a net zero emissions target by around 2050.

The revised IMO GHG Strategy also includes a commitment to ensure the uptake of alternative zero and near-zero GHG fuels by 2030, as well as indicative checkpoints for 2030 and 2040.

The previous (IMO) target, which was set following the 2015 Paris Agreement, sought to cut emissions by 50% by 2050. However, this target was widely criticized as not aligning with the Paris Agreement’s goal of limiting global heating to 1.5°C.

The IMO Secretary-General Kitack Lim described the adoption of the 2023 IMO Greenhouse Gas Strategy as a monumental development for IMO that opens a new chapter towards maritime decarbonization.

As environmental groups still insist the strategy is not ambitious enough and lacks the binding mechanisms or levies that guarantee to achieve such a target, shipping industry officials hailed the new strategy, indicating that the agreement gave them concrete targets to work with. The new strategy has also raised debate on the role the hydrogen-based zero-emission fuels such as green hydrogen, green ammonia, and green methanol, can play in the decarbonization of the Shipping industry.

Zero-Emission Shipping

The shipping industry plays a crucial role in the global economy as it facilitates the movement of goods and commodities across the globe. It is responsible for transporting about 90% of world trade, making it an essential component of international trade and commerce. It also forms a vital link in the global supply chain, ensuring the efficient movement of goods from manufacturers to consumers. Hence, it generates substantial economic impact, providing employment opportunities, generating revenue through freight charges, and contributing to the GDP of many countries.

However, this essential industry also plays a significant role in global emissions as it is responsible for around 2-3% of global CO2 emissions, making it a significant contributor to climate change. While the percentage may seem comparatively lower, in absolute terms, shipping emissions are substantial due to the vast volumes of goods transported worldwide and the expected continuous growth in this sector.

Ships primarily rely on fossil fuels, particularly heavy fuel oil and marine diesel, which are high in carbon content. The sheer size and power requirements of ships result in large quantities of fuel being burned, leading to substantial CO2 emissions. Ships are also known for using high-sulfur heavy fuel oil, resulting in significant sulfur oxide (SOx) emissions. These emissions also contribute to air pollution and associated health issues.

Ships usually operate in international waters, making them challenging to regulate and monitor. The absence of a comprehensive international framework, until recently, has allowed the shipping industry’s emissions to increase considerably.

The industry, with the support of the IMO, has introduced regulations for better fuel efficiency, stricter sulfur limits, and adopting cleaner technologies. Furthermore, industry players are exploring alternative fuels, such as LNG and biofuels, and implementing energy-saving measures like slow steaming and improved vessel design.

However, achieving the net zero goal for shipping seems to hinge on hydrogen.

Hydrogen Paves the Way for Zero-emission Shipping

Green hydrogen, green ammonia, and green methanol are widely debated as the perfect fuel for a future net-zero shipping industry. Green methanol and ammonia have higher energy densities and are relatively easier to transport and store on ships, they have become the most promising near-zero-emission marine fuel for the next decade. However, in the long run, hydrogen can be a more advantageous zero-emission solution, and it poses the least potential threat to the environment when it leaks.

Green hydrogen is produced using renewable energy sources, such as wind or solar power. By using these renewable sources, the production process is free from greenhouse gas emissions, unlike conventional hydrogen production methods. This ensures that the entire value chain, from hydrogen production to utilization in shipping, remains emissions-free.

It also boasts a high energy density per unit of weight, making it an attractive option for the shipping industry. This allows for a higher energy storage capacity on board, facilitating long-distance travel without sacrificing cargo-carrying capabilities.

There is a growing belief that the growing demand for green hydrogen will spur the development of necessary infrastructure, including hydrogen production plants, storage facilities, and refueling stations. This infrastructure will play a critical role in supporting the adoption of green hydrogen in shipping.

At the same time, governments and international organizations are increasingly recognizing the importance of decarbonizing the shipping sector by implementing regulations and incentives to encourage the use of zero-emission fuels like green hydrogen, further driving its potential.

However, some challenges need to be addressed, such as the cost of green hydrogen production, infrastructure scalability, and ensuring safety in handling and storage. Overcoming these challenges will be crucial to fully realize the potential of green hydrogen in achieving zero emissions shipping.

Only A Beginning

The IMO Secretary-General Kitack Lim said the unanimous support from all 175 member states was “particularly meaningful” and that the deal opened “a new chapter towards maritime decarbonization”. However, he admits that “it is not the end goal, it is in many ways a starting point for the work that needs to intensify even more over the years and decades ahead of us.”

As climate events are increasing in intensity and impact, transitioning different industrial sectors, including shipping, to zero-emission fuels, notably green hydrogen, needs to happen as rapidly as possible and will require both financial and strategic support from governments, the private sector, and international organizations.