Global Shipping Industry at Risk of Missing 2030 Climate Targets, NatPower Marine Calls for Urgent Action

Shipping Industry Faces Decarbonization Crisis: Global Action Needed on Energy Infrastructure to Meet 2030 Zero-Emission Targets. End Quote

(1888PressRelease) October 03, 2024 - The Global Maritime Forum has released its 2024 report, sounding an alarm that the shipping industry is lagging behind on crucial decarbonisation targets. In response, NatPower Marine is urging immediate global action to address the energy infrastructure gaps in ports.

The report, produced in collaboration with the UCL Energy Institute and the Getting to Zero Coalition, delivers a stark warning: the shipping industry is not on track to meet its target of 5% zero-emission fuel usage by 2030. Titled Progress Towards Shipping’s 2030 Breakthrough, the report emphasises that the next 12 months are critical for the sector to avoid falling irreparably behind its decarbonisation goals.

Shipping currently accounts for 3% of global greenhouse gas emissions—more than the entire country of Germany—and its decarbonisation is essential for keeping global warming within 1.5°C. However, shipping is responsible for 15% and 13% of SOx and NOx emissions, which are bringing the marine ecosystem to the brink of collapse in the 2040s, with catastrophic consequences. While CO2 emissions will kill us in the long run, pollutants will kill us in our lifetime.

Of the 35 actions necessary to achieve the 5% breakthrough, only eight are deemed ‘on track,’ while 13 are classified as ‘off track.’ Key system change levers—supply, demand, policy, finance, and civil society—are all progressing too slowly, particularly in the areas of finance and demand for SZEF (scalable zero-emissions fuel) capable vessels.

Jesse Fahnestock, Director of Decarbonisation at the Global Maritime Forum, warned: “There is no time to waste, and we must see a significant shift in momentum over the next 12 months to bring our 2030 targets within reach. This report must act as a serious wake-up call to the industry.”

In light of this warning, NatPower Marine, a leading advocate for clean energy solutions in the maritime sector, is emphasising that a critical aspect of shipping’s transition requires global investments in shore-based power infrastructure (cold ironing) and electric propulsion networks. Without urgent upgrades to ports worldwide, ships will be unable to rely on clean energy sources while berthed, further delaying the broader adoption of zero-emission ships.

Stefano Sommadossi, CEO of NatPower Marine, emphasised: “Ports need to electrify and prepare for SZEF and electric propulsion if we want to see significant progress in decarbonising shipping. This report shows we are running out of time, but we can still change course. It’s now up to governments, energy providers and the shipping industry to act. We need a global coalition to invest in port infrastructure and clean energy technologies that will keep global trade moving while protecting the planet.”

Sommadossi added: “This isn’t just a regional issue; it’s a global problem. From Europe to Asia to the Americas, ports must be equipped with reliable, scalable, and clean energy grids to support electric propulsion and zero-emission fuels.”

Global Network of Shore Power and Charging: A Key Missing Piece

NatPower Marine is proactively investing in and building a global network of charging stations at ports. This commitment is crucial, as the implementation of clean energy shore power—allows ships to connect to the electrical grid. At the same time, at berth, instead of relying on diesel engines, there is an immediate opportunity to reduce emissions significantly. Moreover, adopting electric propulsion within a 200-nautical-mile zone from ports can enhance efforts to lower emissions in and around these areas, with an impact 10 to 12 times more relevant than cold ironing only.

This transition is essential to resolving the “chicken and egg” dilemma facing the maritime sector, where shipping lines hesitate to invest in electric propulsion due to uncertainties about charging infrastructure. However, ports are reluctant to invest in connectivity without guaranteed demand from shipping companies.

As emphasised in the Global Maritime Forum’s report, Sommadossi highlighted the urgency of establishing this global network, stating, “We need a global network of shore power and charging infrastructure to support zero-emission shipping. Every port that’s lagging behind in electrification is a missed opportunity to cut their Scope 3 emissions by 90%. Shipping operators can drive the future of clean energy shipping by committing to convert their fleets to hybrid and full electric, which cover 80% of the business cases, saving costs as renewable electricity is the cheaper and most efficient form of energy, and fixing their costs, being more competitive as they can offer a massive reduction in Scope 3 emissions of their cargo.”

The report also notes that without advancements, the industry risks falling even further short of its decarbonisation targets, making it imperative for all stakeholders to collaborate and act swiftly. NatPower Marine concurs with this assessment, which is why they are actively establishing their network of charging stations for shipping lines. Despite the stark challenges highlighted, the report asserts that achieving the 2030 target is still possible if immediate action is taken.

The report further underscores the importance of international policy coordination; negotiations on greenhouse gas pricing and the rollout of public finance to counterbalance the shortfall in private funding are seen as critical levers for meeting the 2030 goals. National governments and industry leaders must work together to ensure that policies align with technological advancements and investment opportunities.

Sommadossi concluded with a renewed call to action: “This report shows we are running out of time, but we can still change course. It’s now up to governments, charging infrastructure providers, and the shipping industry to act. We need a global coalition to invest in port infrastructure and clean energy technologies that will keep global trade moving while protecting the planet.”

With global trade set to grow exponentially and shipping emissions expected to rise accordingly, the industry’s failure to meet the 2030 target would set back global climate goals irreparably and collapse the ocean food chain. Now is the time for bold, decisive global action to create the energy infrastructure and policies needed to decarbonise the shipping industry, keeping the world on track for a sustainable, net-zero future.

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