Op-Ed: How can we get maritime decarbonization underway?

By Brent Perry, CEO of Shift Clean Energy 

Maritime decarbonization (or green shipping) is a growing topic of conversation as leaders worldwide begin to pay attention to the crucial need of transitioning vessels away from diesel—as an industry that contributes nearly 3% to the global greenhouse gas emissions, I am relieved others have started to take notice.

In November 2022, the words “decarbonization” and “net-zero” were prevalent during many conversations at the Conference of the Parties held in Sharm el-Sheikh Egypt. International zero-emission shipping routes weren’t merely discussed in terms of an abstract concept—plans of action were outlined. The UK, U.S., Norway and Netherlands made a pledge to implement ‘green shipping corridors’ closely followed by California and Japan who recently made the same pledge. While I am relieved to see that the dire need to decarbonize the marine industry has finally reached the agenda of leading change makers, is this enough? 

Shipping corridors need infrastructure and technology in place to allow vessels to decarbonize today. The climate crisis won’t wait for us if we don’t put down our pens and take action.  

Prior to COP27, U.S. President Joe Biden stated that green shipping would be a major focus of the climate conversation and invited leaders to participate in the Green Shipping Challenge. This initiative was intended to incentivize parties, ports, maritime carriers, and cargo owners to outline actions to transition the shipping sector to net-zero by 2050, a goal put in place by the International Maritime Organization (IMO). In January of this year, the Biden administration announced a roadmap to decarbonize the transportation section to net-zero by 2050.

But how do we make green shipping a reality, instead of a pipe dream? 

Infrastructure and vessels would need to decarbonize from end-to-end, utilizing zero-emission energy sources. The proposed green corridors would also need to include recharging infrastructure at ports and diesel vessels transitioned to hybrid or full electric. It might sound like a daunting prospect, but the technology needed to achieve this is not a mirage shimmering in the proverbial desert—it’s available today.  

A huge roadblock in terms of transitioning vessels from diesel to electric is the upfront cost. While meeting ESG targets is a consideration for businesses, the bottom line is cash flow and we need to meet this reality. Easy-to-implement, cost effective infrastructure is key, and a leading example of this is PwrSwäp. This pay-as-you-go energy-subscription service meets the industry where it is and allows customers to utilize and pay for the clean energy they need in the ways that they need. Traditional diesel guzzling vessels are able to transition to hybrid or full electric easily and instantly. This allows customers to transition to electric at a fleet level without taking the CAPEX risk of buying the batteries outright.  We share the risk and reduce costs all across the board- delivering zero emission in operations solutions today.  

A green transition is non-negotiable if companies are going to remain a viable part of the shipping industry. Legislation is demanding that the shipping industry begins to take accountability for its climate impact—today. 

The demand for change is growing. In April of 2022, the Norwegian Maritime Authority began the process of drawing up zero emissions requirements for passenger vessels by 2026. On November 1st of 2022, amendments were made to the International Convention for the Prevention of Pollution from Ships (MARPOL), requiring that vessels take action to reduce their greenhouse gas emissions and increase their energy efficiency. As of January 1, 2023, it will be mandatory for every vessel to measure their energy efficiency, to calculate the attained Energy Efficiency Existing Ship Index, and to report their annual operational carbon intensity indicator (CII) and CII rating. The goal of these measures is to reduce carbon intensity across all ships by 40% by 2030. 

The European Green Deal, launched by the Commission in 2019, is currently working to support the development of clean energy sources such as green hydrogen and renewable offshore energy while fostering and developing interconnected energy infrastructure. The European Green Deal requires that the EU and its member states commit to cutting net greenhouse gas emissions by a minimum of 55% by 2030, in comparison to 1990 levels. This statistic is more than a target, it is legally binding. The shipping industry can no longer afford to sit on the sidelines of innovation. 

These new regulations may finally move the needle, incentivizing businesses that are hesitant to electrify to transition into a cleaner and more efficient industry. This transition doesn’t need to be painful—we have the technology to help organizations meet their ESG goals. At Shift, we have solutions that allow vessels to operate at their optimum capacity and in a cost effective way. Electric energy provides businesses with a true-and-tested opportunity to future proof their businesses for decades to come.  

We started Shift with the aim of offering the marine industry clean energy solutions that are easy to implement. There can be confusion over how batteries fit in the green fuel conversation. But every fuel solution, whether it is ammonia, methane, or green hydrogen, needs an energy storage system to operate. Batteries are an integral piece of the maritime decarbonization puzzle and electrification is a viable solution for all vessels.  

Despite these solutions, mitigating climate change cannot be the responsibility of shipowners alone. The government and legislative bodies need to drive forward real change with funding and meaningful action. Without the leadership of the government, climate and green technology leaders cannot scale the change we need. It is imperative that government pledges are converted into vigorous action to reduce the climate impact of the industry—not today, but yesterday.