International shipping and emissions

3 Feb 2022 02:00 PM

International shipping is widely regarded as a ‘difficult-to-decarbonise’ sector. However, having been included in the UK Government’s sixth carbon budget, rapid reductions in emissions from this sector will be required to contribute to UK’s goal of net zero greenhouse gas emissions by 2050. This POSTnote examines the options for reducing emissions from international shipping activities and outlines the regulatory landscape of the sector.

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Greenhouse gas emissions from international shipping activities currently account for 3% of global emissions. Without rapid action to decarbonise the sector, these emissions are likely to grow in the coming decade. Although seen as a challenging to decarbonise sector, the UK Government has recently included shipping in its sixth carbon budget, starting in 2033. As a result, the UK’s share of the sector has become part of the goal to reach net zero emissions by 2050.  

The two main approaches to reduce emissions are either to improve efficiency or to replace heavy fuel oil or marine diesel with low-carbon alternatives. A variety of measures and technologies are currently available to increase the efficiency of shipping activities and provide short-term emission reductions. This includes design improvements, route optimisation and wind-assisted technologies. However, uncertainty around the reliability of these options and structural factors specific to the sector currently limit their use.  

To achieve full decarbonisation in the long term, a switch to zero or net zero emissions fuels or drive systems will be required. A number of low-carbon fuels are currently in commercial use, such as LNG or biofuels, but their scalability and compatibility with a net zero goal have been called into question by many stakeholders. Several zero and net zero emissions fuels and technologies are currently under development, such as electrofuels, green hydrogen and ammonia. However, these will require significant investment and policy interventions to drive infrastructural development and uptake in commercial vessels. 

International shipping is governed by the International Maritime Organization (IMO). The IMO currently has a target of at least a 50% reduction in GHG emissions by 2050, compared to 2008 levels. This target has been widely criticised for a lack of ambition and a variety of stakeholders, including the UK, support a net zero by 2050 goal for the sector. In 2023, the IMO will revise its GHG strategy, which will include mid- and long-term measures to decarbonise the sector and a likely tightening of the 2050 target. 

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