New
Sustainable shipping fuels could reach cost parity with fossil fuels as early as 2035 with the help of decisive emissions policy such as carbon taxes and emissions limits, according to a new report launched today by technology group
The report, titled 'Sustainable fuels for shipping by 2050 - the 3 key elements of success', reveals that the EU Emissions Trading Scheme (ETS) and FuelEU Maritime Initiative (FEUM)[i] will see the cost of using fossil fuels more than double by 2030.[ii] By 2035, they will close the price gap between fossil fuels and sustainable fuels for the very first time.[iii]
Transporting 80% of world trade, shipping is the engine room of the global economy. However, despite being the most efficient and environmental way to transport goods, it emits 2% of global emissions, equivalent to the annual emissions of
In 2023, the
Decisive Policy:
- Maximise certainty: Set an internationally agreed science-based pathway for phasing out fossil fuels from the marine sector, in line with IMO targets.
- Boost cost competitiveness: Adopt a global industry standard for marine fuel carbon pricing.
- Collaborate: Increase global collaboration between governments on the innovation and infrastructure necessary to deliver sustainable fuels at scale worldwide.
Industry collaboration: The sector must collaborate with stakeholders from inside and outside shipping. The report calls on industry to:
- Pool buying power: Initiate sector-wide procurement agreements to pool demand from multiple shipping operators.
- Collaborate with other sectors: Convene with leaders in aviation, heavy transport, and industry to establish a globally recognised framework for the production and allocation of sustainable fuels.
- Share skills: Establish an industry-wide knowledge hub for the purpose of sharing expertise, skills and insights.
Individual actions: Every euro an operator saves in fuel costs at today's prices, could be worth 3-5 times that by 2030. That means companies such as
Holm adds: "If there is one take away from our report, it is that smaller operators need not feel powerless. They have a major role in accelerating towards net-zero emissions shipping. Taking steps to improve fuel efficiency and invest in fuel flexibility can deliver immediate returns, reducing both emissions and operating costs. But action must be swift - we have the lifecycle of just a single vessel to get this right."
Investing in fuel flexibility is the most financially viable way to avoid the risk of stranded assets.
The report provides a roadmap for the future of sustainable fuels, identifying how the industry can more rapidly and affordably scale these fuels and achieve full decarbonisation by mid-century - within the lifetime of just a single vessel. You can access and download the report here.
Media contact for more information on this release:
Positioning and Strategic Communications Manager
Wärtsilä Marine
Tel: +44 (0) 7792 681 757
marine.media@wartsila.com
Image caption: The report, titled 'Sustainable fuels for shipping by 2050 - the 3 key elements of success', provides a roadmap for the future of sustainable fuels, identifying how the industry can more rapidly and affordably scale these fuels and achieve full decarbonisation by mid-century - within the lifetime of just a single vessel.
All
Wärtsilä Marine in brief:
Wärtsilä Marine is a global pioneer in power, propulsion and lifecycle solutions for the marine market. We develop industry-leading technologies, advancing maritime's transition to new fuels. We support building an end-to-end digital ecosystem where all vessels and ports are connected. Ultimately, Wärtsilä Marine is driving the shipping industry forward on its journey towards a decarbonised and sustainable future through our broad portfolio of engines, propulsion systems, hybrid technology, exhaust treatment, shaft line solutions and digital technologies, as well as integrated powertrain systems. Our offering, which is underpinned by our performance-based agreements, upgrades, lifecycle solutions, decarbonisation services, as well as an unrivalled global network of maritime expertise, delivers the efficiency, reliability, safety, and environmental performance needed to support a safe and sustainable future for our customers, our communities and our planet.
www.wartsila.com/marine
www.wartsila.com
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[i]
[ii] See figure 1 in report.
[iii] Applicable to fleets operating in
[iv] https://www.imo.org/en/ourwork/Environment/Pages/Fourth-IMO-Greenhouse-Gas-Study-2020.aspx
[v]https://wwwcdn.imo.org/localresources/en/OurWork/Environment/Documents/FFT%20Project/Preliminary%20outputs%20for%20the%20study.pdf
[vi]Carnival Corporation Upgrading Global Fleet with Fuel- and Energy-Saving Technology (annual fleetwide fuel costs savings estimated to be
https://news.cision.com/wartsila-corporation/r/sustainable-shipping-fuels-can-reach-cost-parity-with-fossil-fuels-by-2035-with-decisive-policy--say,c3948902
https://news.cision.com/wartsila-corporation/i/the-report-sustainable-fuels-for-shipping-by-2050---the-3-key-elements-of-success--provides-a-roadma,c3280553
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