WSC Report Highlights Barriers And Opportunities For EU Shipping Decarbonization

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Mfame Editor
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The World Shipping Council (WSC) has released the first “WSC EU Shipping Decarbonisation Report”, which analyzes the EU’s progress in transitioning to renewable fuels for shipping. While renewable-capable vessels and fuels are becoming available, the high price gap between fossil fuels and renewable alternatives remains the biggest challenge to achieving decarbonization goals.

Key Findings from the WSC Report

Renewable-Fuel Capable Vessels:

  • Currently, 200 liner vessels can run on renewable fuels.

  • By 2030, an additional 700 vessels will enter service.

Projected Fuel Demand by 2030:

  • 14.4 Mtoe (Million tonnes oil equivalent) of methane.

  • 7 Mtoe of methanol.

  • 0.7 Mtoe of ammonia.

Renewable Fuel Production & Supply:

  • The EU’s production of renewable fuels is growing.

  • Supply is expected to meet the FuelEU 2030 decarbonisation targets.

  • However, cost remains the major barrier to commercial viability.

Cost Comparison: Fossil vs Renewable Fuels

Renewable fuels remain significantly more expensive than fossil alternatives:

  • Bio-methane: 169% more expensive than fossil LNG.

  • Bio-methanol: 469% more expensive than Very Low Sulphur Fuel Oil (VLSFO).

  • E-methane: 560% more expensive than VLSFO.

  • E-methanol: 626% more expensive than VLSFO.

Regulatory Measures Needed for Decarbonization

The WSC urges policymakers to implement ambitious regulations to bridge the cost gap and accelerate the transition to renewable maritime fuels.

WSC’s Recommendations for the EU:

  • Align policies with global regulations to ensure fair competition.
  • Set performance-based fuel standards that reflect actual emissions reductions.
  • Introduce a GHG pricing mechanism to fund renewable fuel adoption, possibly using EU ETS revenues.
  • Ensure global certification for truly renewable marine fuels.

With the International Maritime Organization (IMO) set to discuss global fuel standards next month, the EU has a crucial role in shaping ambitious policies that make renewable shipping fuels commercially viable.

“Switching from fossil fuels to renewable energy will take time and require massive investments, but with ambitious regulation, we can achieve both climate goals and commercial sustainability.” — Joe Kramek, President & CEO, WSC.

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Source: World Shipping Council