By Eric Huang.    Photo：Сергей Нестеров

As global climate change continues to escalate, the maritime industry has become a significant source of greenhouse gas emissions, accounting for approximately 3% of the world's total emissions. Confronted with the climate crisis, urgent action is required from the shipping industry to reduce its environmental impact. The International Maritime Organization (IMO) has set ambitious goals to achieve net-zero greenhouse gas (GHG) emissions by 2050. However, the key to achieving these targets lies not only in setting high-profile objectives but also in the regulatory details governing the implementation of emission reduction measures.

While setting ambitious targets is essential, the success of emission reduction strategies largely depends on the regulatory details. Only through well-designed and executed regulations can emission reduction goals be effectively achieved. As the maritime industry is a significant contributor to greenhouse gas emissions, ensuring the comprehensive and effective implementation of solutions becomes increasingly urgent and complex.

In search of sustainable alternatives, more and more vessels are turning to alternative fuels, particularly methane (liquefied natural gas or LNG) and methanol. These alternative fuels are favored due to their lower carbon content, offering more promising prospects compared to traditional oil-based fuels. However, a careful analysis reveals complexities in the production and consumption processes of these alternative fuels.

Methanol, if produced from fossil natural gas, emits a significant amount of carbon dioxide, making its environmental impact about 20% worse than traditional petroleum fuels. When assessing the environmental effects of methanol-powered vessels, the entire life cycle emissions from production to consumption must be considered. With evolving regulations, ship operators may need to explore non-fossil methanol options to achieve significant greenhouse gas reductions.

Despite methane being a cleaner burning fuel, it remains a potent greenhouse gas. Leakage during production and unburned fuel in ship emissions offset the carbon reductions. Researchers emphasize the importance of controlling methane emissions, but shipowners currently lack sufficient incentives to invest in measures to address this issue.

Although methane is the preferred fuel choice for new cargo ships, shipowners must carefully consider the engines they install on liquefied natural gas-fueled vessels. Opting for high-pressure dual-fuel engines to reduce methane emissions may offer long-term benefits, but the current lack of incentives may hinder such investments. Failing to take appropriate action at the design stage could limit opportunities for retrofitting.

In July 2023, the IMO adopted a revised greenhouse gas reduction strategy, outlining ambitious targets for 2030, 2040, and 2050. These goals aim to gradually phase out life cycle greenhouse gas emissions and align with the 1.5°C warming limit. However, to effectively achieve these objectives, regulatory indicators must consider all greenhouse gases, not just carbon dioxide. Currently, existing energy efficiency measures are based solely on carbon intensity, but discussions are ongoing to revise these indices to include life cycle greenhouse gas emissions.

Comprehensive regulations considering the entire life cycle of all greenhouse gases and alternative fuels are crucial for the success of emission reduction efforts in the maritime industry. Existing vessel energy efficiency indices (EEXI) and carbon intensity indicators (CII) must be updated to incentivize the use of appropriate alternative fuels and technologies. Without reaching a consensus on such regulations, the industry faces the risk of stranded assets and inadequate progress toward net-zero targets.

The maritime industry needs to take urgent and effective action to reduce its contribution to greenhouse gas emissions and achieve net-zero emissions by 2050. While setting overall targets is essential in raising awareness, ultimate success lies in the regulatory details. Understanding the impact of alternative fuels like methane and methanol on emissions is crucial for making informed decisions. By implementing comprehensive regulations that consider the entire life cycle of all greenhouse gases and fuels, the shipping industry can align with the 1.5°C temperature limit, incentivize more environmentally friendly alternatives, and pave the way for a sustainable future.

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