- Shipping and Aviation Account for 3% of Global Emissions Each.
- Europe’s Transport Emissions: Shipping at 13.5%, Aviation at 14.4%.
- Aviation Emissions Have Increased by 5% Annually Pre-Pandemic.
The Skies and Seas Hydrogen-fuels Accelerator (SASHA) Coalition has published a position paper explaining how the Clean Industrial Deal can be used to mobilize solutions to make shipping and aviation more competitive and reduce their emissions, reports Safety4Sea.
Key Emissions Contribution by Shipping and Aviation
Shipping and aviation are huge emitters globally, each emitting approximately three per cent. In Europe, they account for more, with shipping emitting 13.5% and aviation emitting 14.4% of transport emissions. Aviation emissions alone increased by five per cent every year in the half-decade before the pandemic, which emphasizes the high demand for tighter controls.
Economic Significance of Shipping and Aviation in Europe
These sectors are extremely important to the European economy. Four of the top five largest container shipping operators are European, and almost 74% of trade between the EU and the rest of the world by volume is carried by sea. Due to this economic importance, sustainable measures must be introduced without causing any hindrance to international trade.
Issues with LNG as a Transition Fuel
The maritime sector has put fossil liquefied natural gas (LNG) in the position of a transition fuel. Based on FuelEU Maritime, LNG’s lifecycle greenhouse gas intensity keeps it aligned with the regulation until 2035. Nevertheless, LNG is a serious risk with high methane leakage. Uncombusted methane is 80 times more effective than carbon dioxide as a greenhouse gas over a short term, which means LNG is an uncertain option for decarbonization in the long run.
The Need for Green Hydrogen Solutions
The Clean Industrial Agreement presents a chance to build an environment that favors green hydrogen solutions ahead of others such as LNG and biofuels, which cannot deliver deep decarbonization. Green hydrogen, in the form of direct use as fuel, fuel cells, or for the generation of e-fuels such as e-kerosene, e-methanol, and e-ammonia, is one of the few competitive proposals to fossil fuels. Direct electrification is another possibility but has limited near-term use in shipping and air transport.
Early-Stage Development and Cost Challenges
Even with its promise, green hydrogen is still in the early stage of development and has high costs, necessitating special policy intervention to stimulate investment and uptake. Without incentives, the sector can’t scale up the production of green hydrogen and supporting infrastructure.
Expert Opinion on the Importance of Green Hydrogen
Aurelia Leeuw, Director of EU Policy, emphasized the need for a structured regulatory approach, stating: “De-risking green hydrogen is a much-needed intervention but requires safeguards to ensure the hydrogen is used only where alternatives like electrification aren’t available. Furthermore, financial mechanisms that help decarbonise shipping must be paid for by the industry itself.”
The EU has initiated early actions towards facilitating the uptake of green hydrogen. It was the initial member state to incorporate shipping within its ETS, and revenue went toward putting out renewable and low-carbon fuels. FuelEU Maritime introduced a conditional aim of 2% uptake of e-fuel by 2034, while the EU Hydrogen Bank earmarked €200 million for maritime off-takers.
Sluggish Takeup of Green Hydrogen
Despite all this, progress has been sluggish. To date, only two e-methanol and two e-ammonia shipping projects have reached a final investment decision (FID), accounting for a mere six per cent of the volumes needed to achieve FuelEU Maritime’s 2% target.
Producing green hydrogen fuels is a key challenge area, especially with the high energy inputs needed for production. By 2050, shipping alone may need as much as 59.5 million tonnes of hydrogen every year, which would call for large-scale improvements in the world’s hydrogen production capacity.
Water Supply Issues in Hydrogen Production
Green hydrogen production entails massive amounts of fresh water, thus sparking debate about equitable access and environmental impact. Desalination may aid in mitigating the problem, but upcoming projects should integrate enough infrastructure to achieve sustainability.
The Need for Strong Policy and Regulation
Strong policies and regulatory systems will be critical to driving investment in e-fuels and zero-emission shipping and aviation technologies. Europe will become a leading producer of green hydrogen, which will be vital for decarbonizing sectors that cannot be easily electrified.
While green hydrogen has a well-defined application in shipping and aviation, its upfront cost premium poses an investment challenge. Investor confidence relies on a stable and clearly defined regulatory regime that will guarantee demand for green hydrogen solutions.
Unclear Rules of Regulation for E-Fuel Investment
The fact that few e-fuel projects have made it to FID suggests that current regulation is not offering sufficient certainty to investors. In air transport, the lack of a coherent structure for zero-emission flight technology also raises uncertainty and the potential for delaying investment. Aircraft typically remain in service for 30 years, so delays in deploying clean technologies today risk committing to high emissions for decades to come.
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Source: Safety4Sea
