Shell together with Deloitte released a report that reveals the need for urgent effort by industry to reduce carbon emissions, says a press release published on their website.
About the report
Shell together with Deloitte Netherlands and Deloitte UK today published joint research outlining industry perspectives on decarbonising the shipping sector.
The “Decarbonising Shipping: All Hands on Deck” report sets out the views of 80 senior shipping executives from across the sector and presents a roadmap of solutions to help the industry meet the International Maritime Organization’s (IMO) ambition to reduce carbon emissions.
Huibert Vigeveno, Downstream Director of Shell says, as shipping is one of the harder sectors to decarbonise, they are working with their customers and the wider industry to identify possible solutions.
“This report shows the urgent effort required by industry to reduce carbon emissions. It stems from Shell’s own ambition to be a net-zero emissions energy business by 2050 or sooner. To achieve that, we need to work with our customers.”
Shipping executives view
Around 95% of shipping executives interviewed view decarbonisation as important or a top-three priority and nearly 80% noted that its importance had increased significantly over the past 18 months.
- 85% of interviewees saw market and customer demand as a major factor driving change towards decarbonisation.
- 80% of interviewees saw technology alignment as a major factor in making decarbonisation feasible.
- 65% of interviewees saw ease of replacing infrastructure as a major factor in being able to make change happen at speed and scale.
About the study
According to Grahaeme Henderson, Vice President Shell Shipping & Maritime, though the current focus of shipping leaders are on the current challenges of the COVID-19 pandemic, the research shows that they still have their sights on the horizon and identify decarbonising shipping as a top priority.
Interviews with shipping’s top executives
The unique study involved detailed interviews with more than 80 of shipping’s top executives, which gave a better understanding of the broader shipping sector.
The research identified the:
- barriers the industry faces,
- solutions that will drive progress, and
- how to work to help accelerate change.
Grahaeme Henderson said:
We want to catalyse progress towards a net-zero emissions shipping industry and working together will be crucial to implementing these solutions.
Roadmap to unlock decarbonisation
Tarek Helmi, Partner, Deloitte Netherlands, said, “The insights from the research give us a comprehensive roadmap to unlock decarbonisation by identifying who needs to do what, and when to drive change.”
Based on in-depth interviews with senior shipping executives across Europe, Asia and North America, the report presents a consolidated roadmap of how to accelerate decarbonisation of the shipping sector.
The five solutions for decarbonisation
It prioritises five solutions to be implemented over the next two to three years that could speed up progress:
- Scale up customer demand: create scale in demand for zero-emission shipping through charterer’s commitments such as long-term contracts and green procurement criteria.
- Global regulatory alignment: create a level playing field by aligning decarbonisation targets and timelines between the IMO and major local regulatory bodies.
- Cross-sector R&D: accelerate companies partnering to develop a zero or low-emission fuel through joint research and development (R&D) across shipping, onshore sectors in which change is hard to achieve and the energy industry.
- Scale up controlled pilot projects: accelerate R&D by running end-to-end green pilot projects involving charterers, operators, owners and ports on specific routes and vessel types.
- Coordinated industry commitment: increase the reach of existing initiatives and implement independent coordination mechanisms to choreograph action and areas of responsibility.
The transition process
In addition, operational efficiency is identified as the foundation for the transition process, enabling reduced emissions from the current fleet through accelerated implementation of operational measures.
- fuel and lubricant quality,
- digitalisation, and
- the use of data and smart navigation strategies.
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Source: Shell Global