{"id":108208,"date":"2023-06-05T06:29:10","date_gmt":"2023-06-05T06:29:10","guid":{"rendered":"https:\/\/alj.com\/?post_type=perspective&p=108208"},"modified":"2023-06-05T06:30:02","modified_gmt":"2023-06-05T06:30:02","slug":"sailing-towards-a-sustainable-future","status":"publish","type":"perspective","link":"https:\/\/alj.com\/en\/perspective\/sailing-towards-a-sustainable-future\/","title":{"rendered":"Sailing towards a sustainable future"},"content":{"rendered":"

The global shipping industry rarely gets a mention in the news unless an oil tanker has been wrecked, a freighter blocks the Suez Canal or, in one memorable incident, 28,000 rubber ducks are swept overboard, prompting 30 years of headlines[1]<\/a>.\u00a0<\/p>\n

The industry\u2019s environmental impact also seems comparatively benign.\u00a0 Even though it accounts for approximately 80% of global transportation by volume, it is only responsible for only 10% of transport emissions and 3% of total greenhouse gas emissions[2]<\/a>.\u00a0<\/p>\n

Now 3% may sound small.\u00a0 But growth in demand for shipping worldwide means that maritime emissions have been accelerating faster than most other sectors in recent years. \u00a0And according to some experts, without action, shipping could be responsible for 10-13% of global emissions within a few decades.[3]<\/a><\/p>\n

There is growing pressure on the shipping industry to improve its sustainability credentials by reducing greenhouse gas emissions, pollutants such as sulfur oxides (SOx), nitrogen oxides (NOx), and particulate matter (PM), as well as fuel consumption.\u00a0<\/p>\n

\"\"The International Maritime Organization (IMO<\/a>), the UN body that oversees global shipping, has a key role in regulating this.\u00a0 The IMO has set a target of achieving a 40% efficiency gain by 2030[4]<\/a> and has called for a reduction in total emissions from international shipping by at least 50% by 2050 compared to 2008 levels.\u00a0<\/p>\n

This is an ambitious target, but given the sheer scale of the sector, it is a necessary one if the net zero targets of the Paris Agreement are to be achieved.<\/p>\n

Three segments \u2013 bulk carriers, tankers, and container ships \u2013 are responsible for around 65% of the shipping industry CO2<\/sub> output and make up around 90% of shipping volumes.\u00a0\u00a0 The good news is that when compared to other forms of freight transport, shipping is the cleanest \u2013 at least if measured in terms of emissions.\u00a0 It produces 20 to 25 grams of CO2<\/sub> per ton-kilometer, a fraction of that produced by other freight transport.\u00a0 In comparison, aviation can produce up to 600 grams of CO2<\/sub> per ton-kilometer and road-based transportation generally ranges between 50 and 150 grams.<\/p>\n

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However, recent research[5]<\/a> indicates the ongoing expansion of global trade could result in a surge of emissions from shipping until 2050, despite the efforts underway to decarbonize the sector.\u00a0<\/p>\n

The industry consumed about 300 million tons of fossil fuel in 2018, and as the global demand for traded products grows, shipping volumes are expected to climb by around 1.3% on average every year until the middle of the century.\u00a0 Or, as the International Renewable Energy Agency[6]<\/a> puts it, if global maritime were a country, it would be the sixth- or seventh-largest CO2<\/sub> emitter.\u00a0<\/p>\n

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Seas of change<\/h2>\n

There has been some progress in efforts to make shipping more sustainable.\u00a0 Ship engines are more energy efficient, thanks to improved technology, and changes in operating practices have reduced emissions.\u00a0 Slow steaming, the practice of deliberately slowing down to reduce fuel consumption, helped reduce emission intensity per ton-mile by 13% between 2008 and 2012, for example.\u00a0<\/p>\n

But given the global scale of the shipping industry, I believe regulation is vital to drive forward meaningful improvements in sustainability.\u00a0 The IMO has developed a crucial agreement, the International Convention for the Prevention of Pollution from Ships (MARPOL<\/a>)[7]<\/a>, which is the primary convention for preventing pollution from vessels.\u00a0<\/p>\n

The latest supplement to this agreement, Annex VI, focuses on cutting air pollution from ships.\u00a0 In 2021, the maximum sulfur content in fuel oil was reduced to 0.5%.\u00a0 For shipping companies, the three most viable options to reduce their sulfur exhaust to 0.5% are: switching to very low sulfur fuel oil (VLSFO), ultra-low sulfur fuel oil (ULSFO) or Marine Gas Oil (MGO); using liquid natural gas (LNG); or fitting exhaust gas cleaning systems, or \u2018scrubbers’, which remove pollutants from regular (and cheaper) fuel.[8]<\/a><\/p>\n

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The economics could not be simpler.\u00a0 Installing a \u2018scrubber\u2019 costs between US$ 1.5 million and US$ 5 million, while cleaner fuel can cost up to US$ 400 a ton[9]<\/a>.\u00a0 The scrubber pays for itself within a year – which is why the number of scrubber-fitted ships nearly doubled from 2,011 ships to 3,935 in just 14 months from January 2020, according to figures from BIMCO, the world’s largest international shipping association[10]<\/a>.<\/p>\n

Arguably, however, scrubbers are part of the problem, not the answer.\u00a0 These devices sit in the exhaust stacks and use seawater to wash out sulfur dioxide pollutants from the engine’s exhaust.\u00a0<\/p>\n

However, the \u2018washwater\u2019 can have negative impacts on the environment.\u00a0 Research has found that the acidic wash, which is up to 100,000 times more acidic than seawater, can harm zooplankton, a major food source for fish like cod and herring, with impacts across the foodchain.<\/p>\n

Most ships use an open-loop system, which means they discharge the waste directly overboard, rather than holding it in a tank for disposal at dedicated port facilities, which would increase costs.\u00a0<\/p>\n

According to a report by the International Council on Clean Transportation[11]<\/a>, roughly 10 gigatons of scrubber washwater are discharged into oceans each year – almost the same weight as all the cargo transported by ships annually.\u00a0 The toxins from scrubber washwater, which include heavy metals, can accumulate in marine food chains and have long-lasting effects on the wider environment.<\/p>\n

Europe takes action<\/h2>\n

The IMO is not the only organization intent on cleaning up global shipping.\u00a0 The European Union (EU) is recognized as a driving force in encouraging sustainable shipping and is keen to encourage more aggressive measure to deal with emissions[12]<\/a>.\u00a0 In 2015 it adopted a new regulation (Regulation (EU) 2015\/757) that aims to collect data on CO2<\/sub> emissions by ships of more than 5,000 gross tonnage calling at any EU port.\u00a0 Called EU MRV, the regulation runs in parallel with the IMO Data Collection System, so there are two data reporting regimes for shipping companies to comply with.<\/p>\n

In 2020, the EU Parliament voted in favor of a proposal to revise the EU MRV and to add affected ships to the EU Emissions Trading System (ETS)[13]<\/a>.\u00a0 This move aims to achieve a 40% reduction in CO2<\/sub> emissions from shipping by 2030.\u00a0 The MEPs (Members of European Parliament) also called for an \u2018Ocean Fund\u2019 to be created to support investment in innovative technologies and infrastructure, such as alternative fuel and green ports.\u00a0 The fund would allocate 20% of its revenues to protecting, restoring, and efficiently managing marine ecosystems impacted by global warming. \u00a0Lack of agreement between EU Members States has, so far, prevented the proposal passing into legislation.[14]<\/a><\/p>\n

Despite the efforts of the IMO and the EU, a global regulatory framework to facilitate sustainable shipping is still lacking.\u00a0 The public’s demand for action on climate change and environmental sustainability has driven the shipping industry, investors, and banks to take matters into their own hands.\u00a0<\/p>\n

The institutions that finance shipping, for instance, are now using the Poseidon Principles[15]<\/a>, a yardstick for measuring the greenhouse gas impact of fleets. \u00a0Fleets that do not measure up will not get finance. \u00a0Some of the industry\u2019s larger customers, such as Amazon and Unilever, are also setting zero-carbon targets for their supply chains as part of their own sustainability commitments.<\/p>\n

Advances in shipping technology<\/h2>\n
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In 2020, the LNG bunkering vessel (LBV) Kaguya supplied LNG fuel to an NYK pure car and truck carrier (PCTC) \u2014 the first time in Japan for LNG fuel to be supplied to a vessel via Ship-to-Ship bunkering. Photo Credit \u00a9 NYK Line<\/figcaption><\/figure>\n

Much of the research into cutting carbon emissions centers around alternative fuels, biofuels in particular. \u00a0So far, progress is mixed.\u00a0 The IMO 2020 Data Collection System (DCS) indicated that 99.91% of marine fuel use was of carbon-based conventional fuels[16]<\/a>.\u00a0 Nevertheless, the potential is enormous, because biofuels offer medium and long-term marine fuel alternatives that can replace conventional fuel without substantial modifications to engines, fuel tanks, pumps, or supply systems. \u00a0<\/p>\n

For example, bio-methanol and bio-LNG (liquefied natural gas) have the same specifications as methanol and LNG, which have been used for years, while diesel-like fuels, such as hydrotreated vegetable oil (HVO) and fatty acid methyl esters (FAME) have already been tested primarily in blends with conventional fuels. \u00a0Most makes of European trucks, for example, have engines that will run on HVO, and commercial haulers are already beginning to use it.<\/p>\n

Perhaps some of the most exciting opportunities in sustainable shipping are being driven by technological advances.\u00a0<\/p>\n

The search for carbon-free forms of propulsion has even taken some companies back to wind power and sails. \u00a0Back in the 1980s several ships were fitted with rigid sails to cut fuel consumption, driven by high oil prices. \u00a0These claimed savings of between 10% and 30%[17]<\/a>.\u00a0 Now marine engineering consultancy BAR Technologies has partnered with Scandinavian marine technology company Yara Marine to develop WindWings[18]<\/a>, a system in which solid wing sales up to 45m high are fitted to the decks of bulk cargo ships. \u00a0Combined with route optimization, WindWings cuts fuel consumption by up to 30%.<\/p>\n

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Photo Credit \u00a9 courtesy BAR Technologies.<\/figcaption><\/figure>\n

Other companies are experimenting with a combination of wind power and solar power. \u00a0Japan-based Eco Marine Power[19]<\/a>, for instance, has developed Aquarius MRE (Marine Renewable Energy) which combines rigid but movable sails that are computer controlled for ocean-going travel while using solar energy to maneuver while in port.<\/p>\n

Another technological contribution toward reducing emissions is likely to be \u201cautonomous technology\u201d \u2013 like a driverless car \u2013 where the ship\u2019s own computer systems monitor and correct its course constantly. \u00a0A paper from marine technology provider W\u00e4rtsil\u00e4[20]<\/a> estimates that autonomy solutions can yield fuel savings of 10% or more on longer voyages by optimizing vessel routing and speed. \u00a0<\/p>\n

Meanwhile, on a two-hour voyage, a mere 60-second reduction in docking time can cut fuel consumption by 2-3% per minute.<\/p>\n

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There are strong signs that commercial shipping is taking these innovative forms of propulsion seriously.\u00a0 In terms of alternative fuels, for instance, the major shipping company, Maersk[21]<\/sup><\/a>, has ordered 13 ocean-going ships that run solely on carbon-neutral fuels so that it can hit its net-zero goals by 2040.\u00a0 It calculates that operating carbon-neutral ships will cut its CO2<\/sub> by 1 million tons or 3%, which is a significant reduction from its current CO2<\/sub> levels of 33 million tons.\u00a0 Meanwhile one of the first companies to test out WindWings is Cargill[22]<\/a>, a leading agri-food group, which charters between 600 to 700 ships annually. \u00a0It is taking part in a pilot project to see if a dry bulk vessel fitted with two wind sail and laden with grain, is commercially viable.<\/p>\n

Zero-emission shipping – a glimpse of the future?<\/strong><\/p>\n

Long-time Abdul Latif Jameel<\/a> partner NYK<\/a>, a major Japanese shipping line, is pioneering a new approach to powering large ocean-going vessels, as part of its \u2018Staying Ahead 2022 with Digitalization and Green\u2019 strategic plan.<\/p>\n