Shell and Deloitte have released All Hands on Deck 2.0, which shows some progress has been made towards shipping decarbonization. However, action and investment must increase in both size and pace to achieve the ambition of being net zero by 2050 – as shipping volumes are expected to increase in tandem with the growth of global trade.
The first edition of the report was published in 2020, identifying tangible actions to decarbonize the industry. The latest publication, All Hands on Deck 2.0, includes an overview of progress across the marine sector, updates on the actions needed and assesses the prevailing views, sentiments and concerns in the sector.
“Change is often the only certainty we have in the shipping industry, but the continued urgency to decarbonize is one constant that remains,” said Melissa Williams, President, Shell Marine. “All Hands on Deck 2.0 shows that action is under way. But crucially, it also shows that this action is not happening at the speed required by the energy transition, especially in areas such as infrastructure replacement and around roles and decision making. I therefore encourage organizations across the industry to carefully consider how to act next, and to reach out to a solutions provider, like Shell, who can help them overcome their decarbonization challenges. Because, by working together, we can secure a brighter horizon for the entire shipping ecosystem.”
The new report proposes six recommendations to speed shipping decarbonization:
Scale up pockets of demand: creating clearer signals of demand through natural demand aggregation for low-carbon fuels and low-emission vessels.
Take a segment-specific approach: identifying common characteristics of each segment to allow for the prioritization and tailoring of solutions, starting with first movers.
Leverage local/regional regulation for momentum: driving progress as a means of advancing near-term material impact on total greenhouse gas (GHG) emissions for the shipping sector, while anticipating that global regulation will need to quickly follow to achieve a level playing field for working towards a net-zero target.
Drive clarity on fuel pathways: increasing demonstration projects and investment in these would support first-mover decision making for both fuel suppliers and shipowners – and should recognise the complementarity of different pathways.
Adopt an integrated view on asset improvement: recognizing fleet composition is crucial in tackling the decarbonization challenge and requires an integrated set of levers. These include efficiency measures, greater investment in dual-fuel-capable vessels, and increased modularity via retrofits – as well as sufficient newbuild and repair yard capacity to undertake these changes.
Activate the first green corridors: taking the steps to operationalize the first shipping green corridorsoffers a concrete proof point that can be scaled from inter-regional impact to an eventual global one.
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