COP 26 – Impact on shipping

COP 26 will no doubt have long lasting and far reaching consequences for us all. But some of the issues discussed have the potential to directly impact shipping.

Green Shipping Corridors

Signatories of the Clydebank Declaration are to support the establishment of zero emission maritime routes between 2 (or more) ports referred to as green shipping corridors.

The voluntary creation of corridors on specific shipping routes between major port hubs are intended to achieve:

• Availability of zero emission fuels and suitable bunkering infrastructure
• Cross value chain collaboration to enable zero-emission shipping from the demand and supply side as well as sharing of information
• To unlock business opportunities and socioeconomic benefits for communities across the globe
• To satisfy and enable customer demand in line with required objectives
• To facilitate Policies and regulations in accordance with national action plans

For more information on this and a list of signatories please refer to below

• https://www.gov.uk/government/publications/cop-26-clydebank-declaration-for-green-shipping-corridors/cop-26-clydebank-declaration-for-green-shipping-corridors#signatories
• https://www.globalmaritimeforum.org/publications/the-next-wave-green-corridors  

Dhaka-Glasgow Declaration

The Dhaka- Glasgow Declaration outlines the demands of more than 50 climate vulnerable nations from Africa, Asia, the Caribbean, Latin America, the Middle East and Pacific. We expect this to impact mid-term measures and strategy revision updates at the IMO. More will become clear at MEPC 77.

Phase Out / Phase Down of Coal

More than 77 signatories pledged to phase out coal by 2050. Whether coal is phased out or phased down it will have a major impact on ship owners, operators and charterers who work in this trade.

For more information, please click on below link

• End of coal in sight at cop26

Beyond Oil and Gas Alliance (BOGA)

This international coalition of governments and stakeholders working together to facilitate the managed phase-out of oil and gas production will no doubt have an impact on the oil and gas industry.

Costa Rica, Denmark, France, Greenland, Ireland, Quebec, Sweden and Wales are core members; California, New Zealand and Portugal are associate members. Italy joined as a “friend” of BOGA.

For more information, please click on below link

• https://beyondoilandgasalliance.com/

The Global Methane Pledge

Stronger regulation of methane emissions should create more certainty for the shipping industry regarding LNG’s emissions benefit. Life cycle analysis on a well to wake basis is what’s needed to accurately compare all alternative fuels. Work is ongoing with engine makers and bunker suppliers to lower methane slip. bioLNG and synthetic LNG will also push development towards lower carbon fuels.

Please see more below:

• SEA – LNG Supports Global Methane pledge 

Discussion on the Role of Biofouling in Emissions

Marine biofouling and the influence it will have on Greenhouse gas emissions gained attention. We expect shipowners to increase focus on this after the 1^st January 2023 to preserve and improve their Carbon Intensity rating (CII).

Please see below for more information.

• GloFouling 
• Preliminary results Impact of Ships’ Biofouling on Greenhouse Gas Emissions

The Nuclear Alternative

Nuclear power has been recognised with potential to increase its integration with other low carbon energy sources in a bid to decarbonise globally. Keep your eyes peeled for North’s article in the next two weeks on the use of Molten salt reactor nuclear technology on merchant vessels.

Please see below a report on the UN technology brief

• https://unece.org/sites/default/files/2021-08/Nuclear%20power%20brief_EN_0.pdf

Roadmap for Green Hydrogen

New roadmaps for green hydrogen support policymakers in making the net zero transition. Presently hydrogen produced by fossil fuel is cheaper than hydrogen produced by renewable energy sources, but we expect this to shift in the opposite direction in the next decade. It is estimated that green hydrogen may be as low as $1.5/ Kg before 2050 as global electrolyser capacity increases making it more attractive in shipping to decarbonise.

Please see more on green hydrogen by clicking on the below link to the International Renewable Energy Agency (IRENA)

• https://www.irena.org/newsroom/pressreleases/2021/Nov/IRENA-and-World-Economic-Forum-Launch-Green-Hydrogen-Toolbox-at-COP26

Deployment of Zero Emission Vessels by 2030

The Getting to Zero Coalition aims to accelerate Maritime shipping’s decarbonisation with the development and deployment of commercially viable deep sea zero emission vessels by 2030. Please see more on the getting to zero coalition below:

• https://www.globalmaritimeforum.org/getting-to-zero-coalition

Find out more at our Navigating Decarbonisation area of the website.