World - Collaboration Is Critical to Achieve Decarbonization in Shipping
It’s not an easy time to be in shipping. Amidst a backdrop of economic challenges, including currently depressed fuel prices, the industry is striving to move toward compliance with the International Maritime Organization’s significant emissions reduction ambition: to halve carbon emissions from 2008 levels by 2050.
Particularly challenged by this goal are U.S. and Canadian owners of smaller, inland vessels, who face a unique set of circumstances. However, decarbonization of these cabotage ships, too, is possible if ship owners are willing to rally to take advantage of the opportunities in this landscape and address the challenges through cross-sectoral collaboration.
Understanding the many perspectives of stakeholders across the industry is a critical first step in moving toward decarbonization. In July, DeLoitte and Shell released a joint collaboration, “Decarbonizing Shipping: All Hands on Deck.” This report, which gathered input from senior shipping executives around the world, provides a comprehensive view on shipping decarbonization from the voices of the market and seeks to clarify a practical way forward. Shell’s response to the report is here.
Industry leaders interviewed for the report were unwavering on a key point: there is an urgent need for the shipping sector to act in order to reach the IMO’s ambition to halve emissions. Without action, the sector will be responsible for approximately 17 percent of global CO2 emissions by 2050. Given the current economic challenges, achieving this can seem daunting.