Understanding Maritime Shipping Companies’ Engagement with Efforts to Decarbonize

Meeting ID: 988 480 6147

Passcode: Shipping

With the rise of global trade, GHG emissions from the international maritime shipping sector may increase between 50% and 250% by 2050 despite efforts to improve energy efficiency of ships (IMO, 2014). The International Marine Organization (IMO) adopted targets in April 2018 to reduce absolute GHG emissions from the shipping sector by at least 50% by 2050 compared with 2008 levels and decrease carbon intensity by least 40% by 2030, and 70% by 2050 (MEPC, 2018). However, maritime shipping companies currently lack the technology, guidance, and incentives to increase their decarbonization ambition. This research aims to understand how environmentally committed shipping companies are engaging with efforts reduce their current and future GHG emissions. Decarbonization efforts of 40 maritime shipping companies, selected from the Getting to Zero Coalition, were scored with weighted indicators that measured International Engagement, Reporting, Emissions Disclosure, GHG Emission Reduction Targets, Carbon Offsets, Fuel Efficiency, and Low-Carbon Fuel R&D. All companies demonstrating strong decarbonization efforts are engaged with reporting, fuel efficiency and low-carbon fuel R&D, and most have GHG reduction targets and emissions disclosures. However, a significant gap remains between engagement with current and future efforts to decarbonize and the required actions to meet the IMO targets. This research highlights the necessity for short-term action and guidance, along with long-term programs and policies such as a Market Based Mechanism to increase decarbonization ambition of maritime shipping companies and to develop low-carbon fuel and technologies. It also provides insights for how to effectively engage shipping companies to reduce their GHG emissions.