Decarbonizing shipping: national action and the challenges ahead

Beatriz Garcia,
Dr., Senior Lecturer, Nationally Accredited Mediator,
School of Law, Western Sydney University,
Australia

Hector Gutierrez-Bocaz,
Lieutenant – Royal Australian Navy,
Sea Power Centre-Australia, Royal Australian Navy – Department of Defence,
Australia

In 2018, the International Maritime Organization (IMO) announced a greenhouse gas (GHG) emission reduction target for international shipping. This target – to reduce emissions by at least 50% by 2050 compared to 2008 – marked a milestone in global climate change regulation. It is the first sector-wide target established for the shipping industry. The roadmap to achieving this goal is the Initial IMO Strategy on Reduction of GHG Emissions from Ships, which proposes implementation measures for the short, medium and long term. In the short term, IMO member States must develop National Action Plans (NAPs) defining domestic policies to meet emission reductions in shipping. We argue that NAPs can play a key role in guiding national action and meeting international obligations. We also discuss some of the challenges in ensuring that the NAPs are effective and the goals of the Initial IMO Strategy are achieved.

Current national action plans

So far, only five countries – India, Japan, the Republic of the Marshall Islands, Norway and the United Kingdom – have completed their NAPs. The strategies in these NAPs include increasing the energy efficiency of ships and ports, investing in research and development for alternative bunker fuels and green technology, and improving infrastructure and logistics.

The UK’s NAP commits to zero-emission ships by 2050 and proposes non-tax incentives and a Green Finance Initiative for shipping. The UK will measure emissions from vessels operating domestically, extend North Sea Emission Control Areas in internal waters, and encourage ports to develop Air Quality Plans. The Clean Maritime Council is the agency expected to implement these commitments. The UK also aims to explore alternative fuels (such as hydrogen, ammonia, batteries and electric engines) and improve port infrastructure for the transportation and bunkering of these fuels.

Norway’s NAP establishes a 50% reduction of emissions from domestic shipping and fisheries by 2030 and proposes low/zero-emission solutions for all types of vessels. It establishes specific measures for different categories of vessels. For example, cruise ships and ferries sailing in the West Norwegian Fjords are expected to be emission-free by 2026. The government envisages renewing the cargo fleet with funding from various domestic sources.  The NAP focuses on technological innovation for the uptake of alternative fuels and improving port infrastructure, with ports expected to be emission-free by 2030.

Japan’s NAP proposes meeting the IMO target through energy efficiency improvements to existing ships. Japan champions the use of alternative fuels and other technological solutions, including concept designs for ultra-low or zero emission ships that would reduce 90% of GHG emissions. In its NAP, the Marshall Islands aims very generally to reduce domestic shipping emissions by 40% by 2030 and 100% by 2050. The NAP proposes a framework in which the Micronesian Centre for Sustainable Transport will prepare and implement a low-carbon strategy for the transport sector. India’s NAP focuses on managing the growth and development of port operations with the aim of achieving a safe, sustainable and green port sector.

It is probably too early to tell if the NAPs will help achieve the sector’s new emission reduction and decarbonization goals. However, if well-designed and fully implemented, NAPs could indeed give effect to international commitments. For example, research and development measures proposed under current NAPs can contribute to the development and deployment of alternative fuels envisaged under the Initial IMO Strategy. Moreover, if NAPs are designed to align with IMO targets and guidelines, they can also be an instrument of coordination among IMO member States to help achieve common goals. While current NAPs signal the direction of the sector’s decarbonization, they tend to set mostly general goals and define areas where further work is required. To achieve real outcomes, NAPs should provide tangible and measurable actions accompanied by regular evaluation and monitoring. Countries should be able to tell whether the measures proposed in their NAPs are achieving the desired outcomes.

There is substantial room to argue that, although the current NAPs do target decarbonization, the overall strategies that are being proposed do not include targeted short-term measures that provide a clear path to reducing GHG emissions from shipping. It may be that some countries are tackling the problem in a more general sense in order to pursue specific measures at a later stage, but detailed commitments are crucial in adhering to national (and international) GHG emission reduction goals.

What are some of the challenges ahead?

IMO member States may design innovative and comprehensive NAPs and targeted measures, but the key issue is whether they will have the technical and financial capacity to implement them. While some large shipping companies are investing in low-carbon fuels and green technology, most shipowners are small family-run businesses that are unable to do the same. Likewise, IMO member States have varying capacity to introduce the large and costly changes required to decarbonize the industry, including improvements in technology, infrastructure and logistics. Who will pay for this? Will the financial burden be on individual States? How much support can be expected from shipping companies, developed countries, financial institutions, and the IMO? The IMO recognizes this challenge and has made efforts to address the needs of developing countries through various resolutions and through projects such as the Global Maritime Energy Efficiency Partnerships Project (GloMEEP) and GreenVoyage2050.

Will the IMO be able to drive the changes required to decarbonize the industry within a limited timeframe? As the sector’s regulator, the IMO plays the role of “orchestrator”, engaging diverse actors towards common goals. But, even if the IMO effectively engages key stakeholders, there are limits to what it can do. The authority to enforce IMO regulations and standards rests with member States, which have varying capacity and political will to do so. Even established legal instruments, such as the International Convention for the Prevention of Pollution from Ships (MARPOL), have uneven ratification and implementation records. The Initial IMO Strategy and future GHG regulations may face similar challenges.

In the short term, IMO member States should consider NAPs as an opportunity to design plans of action that can deliver tangible outcomes. Going forward, NAPs should aim at designing precise and measurable activities, which can be assessed and adjusted through regular evaluation and monitoring. The IMO, but also shipping companies and financial institutions, should support the design and implementation of NAPs to ensure that national actions can drive the much-needed greening of ships and ports.

Email: b.garcia@westernsydney.edu.au; hector.gutierrez-bocaz@defence.gov.au

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