GCMD and BCG identify three types of approaches to maritime decarbonisation

The Global Centre for Maritime Decarbonisation (GCMD) and Boston Consulting Group (BCG) jointly conducted an industry survey to assess the progress of ship operators in achieving net zero emissions by 2050.

PHOTO: A ship's funnel emitting black smoke. Getty Images

According to BCG, the survey identified three prevalent approaches within the shipping industry towards meeting the International Maritime Organization’s (IMO) revised greenhouse gas (GHG) emissions target – frontrunners, followers, and conservatives.

Both the industry bodies concluded that “most respondents viewed net zero as a strategic priority, and 77% [survey participants] had already set concrete targets.” However, they also found that there is a huge gap between the levels of ambition in these approaches.

“Frontrunners have the greatest ambitions and are willing to invest heavily,” BCG said. They are adopting nascent solutions and emerging technologies such as wind propulsion and air lubrication systems. They plan to “adopt methanol and ammonia as early as 2026 and 2029 respectively,” depending upon the availability of bunkering infrastructure for these fuels, the report added.

Followers encompass shipping companies that “believe in decarbonising their fleets” but refrain from investing in nascent solutions due to “tighter investment thresholds and a near-term outlook.” These shipowners prioritise investments in solutions that offer immediate solutions to limit their fleet emissions.

They are more inclined to implement cost-effective measures like optimising the main engine and using slow steaming, and are usually reluctant to embrace emerging technologies such as wind propulsion and air lubrication systems.

 “Conservatives are still early in their decarbonisation journey,” primarily due to a lack of awareness about the various tools leveraged to mitigate GHG emissions, the industry bodies argued in their joint study. “Adoption of complex or nascent levers remains low,” it further added.

The research also showed that the adoption of drop-in green fuels is “constrained by costs and supply-side gaps”. The anticipation for future cleaner fuels is yet to translate into firm commitment, the study concluded.

By Aparupa Mazumder 

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