Closing the gap on green shipping
In a new report, Wärtsilä suggests that sustainable shipping fuels could reach cost parity with fossil fuels by 2035 with the help of policies such as carbon taxes and emissions limits. The EU emissions trading scheme (ETS) and fuel EU maritime initiative (Feum) are expected to double the cost of using fossil fuels by 2030, closing the price gap between fossil and sustainable fuels.
Shipping, which transports 80% of world trade, is under pressure to reduce its emissions, which currently account for 2% of global emissions.
The International Maritime Organisation (IMO) has set a target of achieving net zero emissions by 2050. Wärtsilä's report highlights the need for decisive policy implementation, industry collaboration, and individual operator action to scale the production of sustainable fuels. It calls for internationally agreed pathways for phasing out fossil fuels, a global standard for marine fuel carbon pricing, and increased collaboration between governments.
The report also emphasises the importance of sector-wide procurement agreements, collaboration with other sectors, and sharing expertise within the industry. Individual operators are encouraged to improve fuel efficiency and invest in fuel flexibility to reduce emissions and operating costs.
Wärtsilä recently launched the first commercially available four-stroke engine for ammonia fuel, which can reduce emissions by over 70% compared to diesel. The report provides a roadmap for scaling sustainable fuels and achieving full decarbonisation by mid-century. (pb)