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Green Transition /Transition to Renewable Energy Sources is a challenging step. Nations and industries have to dedicate a lot to reach the target. The shipping industry is one of the leading industries impacted by green transition efforts. Some social media posts describe the negative side of it and that the green transition of the shipping industry is economically disastrous to the world.
Is this disastrous? Below is our investigation into it.
Shipping Industry and Greenhouse Gas Emissions
According to the fourth greenhouse gas emission study done by International Maritime Organization in 2020,
The greenhouse gas (GHG) emissions — including carbon dioxide (CO2), methane (CH4) and nitrous oxide (N2O), expressed in CO2 — of total shipping (international, domestic and fishing) increased from 977 million tonnes in 2012 to 1,076 million tonnes in 2018 (9.6% increase). In 2012, 962 million tonnes were CO2 emissions, while in 2018, this amount grew 9.3% to 1,056 million tonnes of CO2 emissions.
The share of shipping emissions in global anthropogenic emissions has increased from 2.76% in 2012 to 2.89% in 2018.
The report can be read here. Archived
According to the above details, it`s clear that the shipping industry also contributes to global warming by releasing greenhouse gases into the atmosphere.
Let`s see in which ways the shipping industry releases greenhouse gases into the atmosphere……
Ships transport more than 10 billion metric tons of cargo and millions of passengers annually. Mainly from the burning of fossil fuel, those ships get energy, which causes a significant release of greenhouse gases into the atmosphere. Details about it can be read here. Archived
How to Reduce the Green House Gas Emissions from ships?
There are various ways to reduce greenhouse gas emissions.
1.Switch to Cleaner Sources of Fuel
Until recently, ships used a fuel type named “bunker fuel”, which is low quality and has high Sulphur concentration. However, in 2020, WMO imposed strict rules regarding the quality of fuel.
Moreover, there is a flourishing demand for biofuel as an experimental substitute to replace fossil fuels. However, there are some technical needs, like engine modification, etc., to implement those plans. It should have some capital investment in the beginning.
2.Embrace Wind Power
Even though the world is so developed from engineering technologies and modern naval methods, the traditional sails still have a role to play in the combat against global climate change. Many naval companies in the contemporary world are trying to shift to sailing using more advanced methods with traditional knowledge. However, the time to travel globally using sails is higher than fossil fuel burning. Sometimes, it can cause a shortage of goods in the market in certain areas and lead to inflation.
3.Transition to Green Hydrogen
This is an expensive technology. Using renewable energy sources such as solar and wind to split water into hydrogen and oxygen, green hydrogen holds the potential to create 100% emission-free shipping. However, green hydrogen currently requires 2-4 times the physical space of bunker fuel – meaning ships aren’t able to carry as much cargo, and it`s financially disadvantageous. More advanced engines should be designed to implement this technology. Despite the current expensive nature, field experts believe green hydrogen will become more cost-efficient within the next ten years.
4.Utilize Battery Storage
Increasing battery storage can save energy and paves the way to reducing emissions. This also needs advanced technology and capital investment at the beginning. However, it`s a long-time sustainable.
5.Reduce Travel Speeds
This does not need advanced technology, and the process is officially named “slow steaming.” This can reduce emissions as well as save money. In the 2009 economic depression, which happened due to the oversupply of goods to the market, many naval companies practised this technique. However, this technique has some economic disadvantages at present. Less speed can pave the way to low supply in the market, and it can pave the way to inflation due to a lack of goods in need to fulfil the demand. And have to use more ships to maintain the supply chain without shortages.
Many details about the above can be taken from here. Archived.
From the above examples, it`s understandable that green transition is expensive initially, but in the long run, it`s sustainable. And, yes, it can increase the shipping and consumer prices at certain times.
The International Maritime Organization (IMO), the UN body responsible for shipping, has set itself the target of reducing greenhouse gas emissions by at least 50 per cent by 2050, compared to 2008. This is expected to cost international shipping $40 billion a year by 2030 to produce zero-emission fuels and bunkering infrastructure, according to research by the University Maritime Advisory Services (UMAS), which is partnered with University College London’s (UCL) Energy Institute. However, there is a question of where such massive funding comes from. Banks, Financial bodies and various other organisations are starting the funding process. But, it`s controversial whether the efforts are sufficient to reach the target. More details about this can be read here. Archived.
