Low and zero-carbon fuels will be needed to decarbonize shipping. The lifecycle refers to the assessment of GHG emissions from the fuel production to the final use on board a ship (Well-to-Wake) including from primary production to carriage of the fuel in a ship’s tank (Well-to-Tank, also known as upstream emissions) and from the ship’s fuel tank to the exhaust (Tank-to-Propeller or Tank-to-Wake, also known as downstream emissions). The Intersessional Working Group on Reduction of GHG Emissions from Ships (ISWG-GHG 9), which met 15-17 September, discussed a number of submissions by Member States and international organizations, including proposed lifecycle guidelines. Initial consideration was given to the project at the first subsequent meeting of the IMO Marine Environment Protection Committee (MEPC) in November 2020.An International Maritime Organization (IMO) working group has made concrete progress in developing lifecycle GHG/carbon intensity guidelines (LCA guidelines), to be utilized when assessing the overall climate impact of new fuels, which shipping needs to transition to in order to meet the GHG reduction ambitions, as set out in IMO’s Initial GHG Strategy. However, governments worldwide must first accept the proposal. This would enable the Fund to launch in 2023. The Fund – known as the International Maritime Research and Development Board (IMRB) – would be overseen by Member Countries to the IMO and established by an amendment to MARPOL, the IMO Convention for the Prevention of Pollution from Ships. The proposal demonstrates how the shipping industry is proactively taking action to achieve internationally agreed environmental goals and, in some cases, surpassing them. ICS believes this ambitious target can only be met if innovative new technologies are developed, requiring substantial additional investment. Taking into account trade growth estimates, shipping will have to improve its carbon efficiency by some 90% in order to achieve IMO’s target of a 50% reduction in global GHG emissions by 2050. You can try out a prototype of the IMRF R&D contribution fund here. The Fund will support research, development, and deployment of zero carbon technologies, carrying out pilot projects and tertiary research that can be later scaled up across the industry. ICS believes this approach is critical to accelerate the R&D effort which will be needed to achieve commercially viable zero-carbon ships in the next 10-15 years.

The Fund would be financed by a mandatory levy of $2 per ton on marine fuel, generating a core $5 billion over a 10-year period. To achieve the development of viable zero-carbon emission ships, ICS and its industry partners are proposing the establishment of a groundbreaking $5 billion Research & Development (R&D) fund.

Imo marine