As the fastest growing energy source globally, renewable energy is projected to supply nearly half of the world's electricity by 2050.
Wind and solar capacity will overtake both gas and coal globally by 2024. In the U.S. renewable energy consumption has already surpassed coal.
The commercial shipping share of global greenhouse gas (GHG) emissions has reached about 3%. In the EU, the maritime sector represents about 13% of total GHG emissions caused by transportation in 2017.
As the cost of renewable energy continues to decline, existing technology enables us to facilitate the energy transition also into the maritime industry.
The paradigm shift in energy used for maritime fuel will be inevitable.
Use of renewable energy for commercial vessel propulsion will not only reduce direct GHG emissions but effectively also eliminate Scope-3 GHG emissions from production and transportation of conventional fossil fuels.
"You can’t really develop a decent climate change strategy unless you’ve looked at Scope-3. [It] is crucial to all forms of climate change activity.”
- Tom Cumberlege of Carbon Trust (FT May 27, 2021)
Making commercial shipping use renewable energy for propulsion will be key to making the global supply chain sustainable and will also help global corporations eliminate their Scope-3 emissions.
Unwavering demand from consumers, shippers and operators for solutions to reduce global supply chain GHG emissions is now mirrored not only by regulatory bodies, such as IMO, but also by the world political & economic leadership.
Greenhouse Gas (GHG) regulations are imminent and driving energy transition in shipping.
Energy Efficiency eXisting ship Index (EEXI)
Existing ship designs must attain EEXI approval to operate
Carbon Intensity Indicator (CII)
Operational efficiency must meet increasingly stringent thresholds
Annual efficiency improvements
EU Emissions Trading System (EU ETS)
Must purchase EU Allowances (EUA) for annual ship CO2 emissions
Operational cost increase