Emissions

Sustainable shipping fuels could reach cost parity with fossil fuels as early as 2035 with the help of decisive emissions policy such as carbon taxes and emissions limits, according to a new report launched today by technology group Wärtsilä.

The report, titled ‘Sustainable fuels for shipping by 2050 – the 3 key elements of success’, reveals that the EU Emissions Trading Scheme (ETS) and FuelEU Maritime Initiative (FEUM)[i] will see the cost of using fossil fuels more than double by 2030. By 2035, they will close the price gap between fossil fuels and sustainable fuels for the very first time.

Transporting 80% of world trade, shipping is the engine room of the global economy. However, despite being the most efficient and environmental way to transport goods, it emits 2% of global emissions, equivalent to the annual emissions of Japan. Without action, this could increase by more than 45% by 2050.

In 2023, the International Maritime Organization (IMO) set a target of achieving net zero emissions by 2050. Existing decarbonisation solutions, such as fuel efficiency measures, could cut up to 27% of emissions[v]. Wärtsilä’s report argues that sustainable fuels will be a critical step in eliminating the remaining 73% but radical action is needed to scale them. The industry suffers from a “chicken and egg” challenge – ship owners won’t commit to a fuel today that is expensive, only produced in small quantities, and may be usurped by another fuel that scales faster and more affordably. Meanwhile, it is difficult for suppliers to scale production without clear demand signals.

Wärtsilä has produced new modelling that shows a timeline of which fuels are likely to become widely available on a global scale, when and at what cost. To accelerate this timeline, the report argues that decisive policy implementation, industry collaboration, and individual operator action must coalesce to scale the production of these fuels.

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A comprehensive new report that examines the future of lower-carbon shipping fuels for the Great Lakes St. Lawrence Seaway maritime system has been released by the Great Lakes St. Lawrence Governors & Premiers (GSGP), the International Council on Clean Transportation (ICCT), and American Bureau of Shipping (ABS).

The report, Feasibility Study of Future Energy Options for Great Lakes Shipping, assesses a range of fuels that could be used to help decarbonize the regional maritime system. The report finds that each fuel alternative would initially cost more than traditional fuels but that different short and long-term strategies could be used to manage costs.

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A new B.C. Maritime Industries Strategy will chart the course for a more competitive, modernized marine sector with reduced carbon emissions, and creating more highly skilled jobs to meet growing demands.

“B.C. is home to Canada’s largest maritime sector with leaders and businesses at the forefront of marine innovation, clean fuels and technological advancements,” said Brenda Bailey, Minister of Jobs, Economic Development and Innovation. “By modernizing our maritime infrastructure and better co-ordinating maritime industry contracts and workforce strategies, B.C. will support local companies to grow into new international markets, and open more career opportunities and jobs for British Columbians.”  

The new B.C. Maritime Industries Strategy is a key action in the StrongerBC Economic Plan. As much as $25 million will be invested in new and modernized infrastructure and assets that will support shipyards to meet growing market demand for their services and attract more investment to B.C.

The funding is being provided by the Province to the Association of B.C. Marine Industries (ABCMI) to deliver the new B.C. Maritime Industries Infrastructure Modernization and Expansion Grant Program. B.C. companies can apply for grant funding on the ABCMI website.

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A newly signed project is set to provide pilot projects in developing countries in order to demonstrate technical solutions for biofouling management in developing countries, address the transfer of invasive aquatic species and help reduce greenhouse gas emissions from ships.

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