Shipping’s Transition Being Hampered By Policy Uncertainty, Yet Industry Progress Continues
The shipping industry is at greater risk than ever of missing its 2030 zero-emission fuel targets, due in large part to the regulatory uncertainty of the last 12 months, according to a new report. Launched today at New York Climate Week, the fifth edition of the ‘Climate action in shipping: Progress towards shipping’s 2030 breakthrough’ ...
The shipping industry faces significant challenges in meeting its 2030 zero-emission fuel targets due to regulatory uncertainty, according to a new report. Released at New York Climate Week, the fifth edition of 'Climate action in shipping: Progress towards shipping’s 2030 breakthrough' highlights mixed progress towards the estimated 5-10% fuel uptake from scalable zero-emission sources (SZEF) needed to achieve the International Maritime Organization (IMO) Greenhouse Gas Strategy and the industry’s broader 2050 net-zero goal.
The report reveals that despite several indicators showing the impact of economic and political upheaval, the industry is still making strides. Notable achievements include the world's first ammonia bunkering and sea trials, a 53% increase in ports offering methanol bunkering, and tripling of methanol-capable in-service tonnage.
However, key areas like demand, finance, and policy have either stagnated or worsened since the last report. The failure to adopt the IMO’s Net-Zero Framework (NZF) last year was identified as the most significant setback, with shipowners lacking confidence to order zero-emission vessels, lenders hesitant to invest, and charterers unwilling to pay for low-carbon shipping.
The report calls for the IMO to adopt the NZF at its upcoming session in December to provide the necessary global policy clarity and direction. It also emphasizes the importance of national and regional policies that support SZEF production to de-risk first-mover action.
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