Energy Transition, Maritime & Shipping, Emissions, Hydrogen

November 13, 2024

COP29: Call to Action pushes for acceleration of zero-emission fuels uptake in shipping

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HIGHLIGHTS

Global green hydrogen output must double by 2030 to align with 1.5 C pathway

Coordination vital across spectrum of shipping supply chain

Bridging cost gap between fossil fuels and SZEFs imperative

More than 50 stakeholders across the shipping value chain have signed a Call to Action at the UN Climate Change Conference to accelerate the adoption of zero-emission fuels, including the development of green hydrogen infrastructure, to achieve decarbonization.

Organized by RMI, the UN Climate Change High-Level Champions, the UCL Energy Institute, and the United Nations Foundation, the Call to Action pushes for "faster and bolder action" to increase uptake of zero- and near-zero emission fuels, investment in zero-emission vessels, and global development of green hydrogen infrastructure, a statement posted Nov. 12 by Lloyd's Register, which is also a signatory to the Call to Action, said.

Signatories to the Call to Action include e-fuel producers, vessel and cargo owners, ports and equipment manufacturers.

To align with a 1.5 C pathway, global green hydrogen production must double by 2030, translating into the uptake of at least 5 million mt of green hydrogen in the shipping sector, it said.

"To accomplish this, coordinated action is needed across the supply chain to expand the supply and adoption of zero- or near zero-emission shipping fuels such as e-ammonia and e-methanol, build up the ecosystem synergistically, and deliver on a just and equitable transition," it said.

The signatories to the Call to Action have outlined various key recommendations to expedite the adoption of hydrogen-derived fuels.

This includes the need for clear, ambitious medium-term measures; a balanced approach to revenue distribution to help bridge the cost gap between fossil fuels and scalable zero-emission fuels (SZEFs); and evidence that key milestones for practical use of SZEFs are advancing, it said.

Ports and port service companies, alongside financiers, have also added their support to the Call to Action, committing to invest in hydrogen-derived fuel infrastructure and safety projects to support bunkering of e-fuels, it said.

Mobilizing support for zero-emission fuels

The Call to Action comes ahead of the 83rd session of the International Maritime Organization's Marine Environment Protection Committee, or MEPC 83, in April 2025, where "global regulatory architecture will be set for a global fuel standard and a greenhouse gas pricing mechanism" to achieve the ambition of the IMO's 2023 GHG Strategy to achieve net-zero emissions in the maritime sector by 2050, it said.

Ahead of COP29, the IMO had made a submission to the UNFCCC Subsidiary Body for Scientific and Technological Advice (SBSTA 61), reiterating its levels of ambition contained in the 2023 IMO GHG Strategy, including the confirmation of the aim to reduce CO2 emissions per transport work (carbon intensity), as an average across international shipping, by at least 40% by 2030, compared with 2008; and to reach net-zero GHG emissions by or around 2050, among other measures.

The SBSTA is considering to request the IMO to report on how its proposed goals and regulations could affect "economic growth and development, particularly in developing countries" and its strategies on technology transfers in the 62nd SBSTA session in June 2025, according to a draft of its conclusion statement.

The MEPC 82 approved, in principle, the summary of mandatory ship fuel oil consumption data reported to the IMO ship fuel oil consumption reporting system for 2023, covering 28,620 ships representing a combined gross tonnage of 1,301 million mt.

In total, on a quantity basis, about 211 million mt of fuel was used in the 2023 reporting period, against consumption of 213 million mt in 2022, and 212 million mt in 2021, it said.

About 93.52% of the fuel oil used during 2023 was either heavy fuel oil, light fuel oil or diesel/gasoil, it said. The remaining fuels outside of these fuel types amounted to 6.48% of the fuel used in 2023 compared with 5.35% in 2022, it said.

In 2023, the use of LNG increased slightly compared to previous years, while the reported use of alternative fuels other than LNG -- ethane, biofuels, methanol etc. -- continues to increase significantly, it said.