IMO’s Net Zero Framework can provide significant incentives for electrification and boost support for COP31 35-by-35 electrification target

The IMO's Net Zero Framework has the potential to significantly incentivize the electrification of maritime transport and support the ambitious COP31 35-by-35 electrification target, according to a new report by the UCL Energy Institute's Shipping and Oceans Research Group. Using the Grand Inga hydropower project in the Democratic Republic of Congo (DRC) as a case study, the report highlights two key opportunities for electricity generation that could benefit both the DRC and the broader maritime sector.

Firstly, the report finds that shore power, or cold ironing, could provide an immediate, cost-effective solution for DRC ports, enabling vessels to reduce emissions while docked. This method of electrification could also create a strong business case for further electrification investments in developing countries, with similar demand for cold ironing potentially emerging across other regions.

Secondly, the report identifies green ammonia production as the more strategic and larger-scale opportunity. By utilizing the Grand Inga project's low electricity costs and high production reliability, green ammonia could serve as both a marine fuel and a valuable export commodity, with potential applications in fertilizer and other industries.

The report notes that the project's combination of high production efficiency and low electricity costs makes it a promising candidate for unlocking investment in renewable electricity generation.

The findings underscore that IMO's Net Zero Framework can serve as a powerful driver for electrification in the shipping sector and beyond. The report emphasizes that policies weakening the framework, such as lowering the stringency of the GFI or reducing enforcement costs, could undermine the business cases for both cold ironing and green ammonia production, potentially stalling progress towards the COP31 electrification goal.

Dr. Mohd Shoaib, a research fellow at the UCL Energy Institute, emphasizes that the electrification of shipping can also contribute to broader efforts to meet the COP31 target, particularly when other sectors are prioritizing electrification. By focusing on the electrification of maritime transport and supporting related infrastructure, the IMO's Net Zero Framework can play a crucial role in accelerating global decarbonization efforts.