Examining the Biggest Polluters: Report Card of Shipping Industry

Nearly 80 per cent of the world’s trade is carried out by sea. Indeed, shipping offers an environmentally efficient means of transport per unit of cargo when compared to other highly polluting media such as air and road transport. Yet, the sheer volume of maritime trade results in a significant contribution to the world’s greenhouse gas emissions, making it one of the biggest polluters. Global demand for shipping is also growing, and if the sector doesn’t clean up, its harm to the climate will grow, too.

Being one of the biggest polluters, the shipping industry contributes disproportionately to air pollution in many densely populated coastal areas. This is also a major global health issue of increasing concern.

The globe is now eyeing to go carbon neutral by around mid of this century. Despite offering fewer emissions per unit of cargo transport, the shipping industry is also on the crosshair of international efforts to reduce carbon emissions as a part of the net zero goal.

Share in the Global Pollution

International shipping accounted for around 2 per cent of the global GHG emissions annually in 2021 – comparable to the total emissions from the aviation industry. The industry emitted over 1,056 million tonnes of CO2 in 2018. The emissions continue to grow and are still far from being aligned with the Paris Agreement’s temperature goal of limiting global warming to 1.5 degrees Celsius. According to IMO, the emissions may grow to 130 per cent of 2008 levels by the middle of the century if left unchecked.

Dirtiest Fuel

Most cargo ships run on one of the dirtiest fuels on the planet – bunker fuel or heavy fuel oil. It’s a thick sludge that has to be heated to 104 degrees Fahrenheit just to flow enough to be pumped. Ships, especially container ships, need the largest burning of this fuel – more than 66 gallons of fuel per minute underway.

Naturally, the exhaust it produces on consumption consists of several noxious chemicals. According to the International Council on Clean Transportation (ICCT), the pollution due to shipping is responsible for about 60,000 premature deaths per year.

Measures to Reduce Carbon Footprint

The United Nations agency for regulating shipping – International Maritime Organization (IMO) – and several companies have ambitious commitments to curb shipping emissions and reduce fuel consumption.

IMO is at the helm and driving the shipping industry toward the same goal. The Initial Strategy envisages carbon intensity of international shipping to decline by at least 40% by 2030, with efforts to achieve 70 per cent reductions by 2050 and reducing at least 50 per cent GHG emissions by 2050, compared to the 2008 target. It entails an almost 15% reduction in emissions from 2021 to 2030. Further, draft guidelines to support the implementation of ship carbon intensity measures coming into effect in 2023 have been finalized by an International Maritime Organization (IMO) Working Group.

However, existing regulations on energy efficiency fall short of long-term targets. As per IEA findings, IMO’s short-term measures entail an average annual efficiency improvement of the global vessel fleet (measured as emissions per tonne-kilometre) of almost 2% between 2020 and 2030. This is not a much higher target compared to the historical average annual improvement rate of 1.6% between 2000 and 2017. At least, 4 per cent of average annual improvements to 2030 are required to put international shipping on the Net Zero Emissions pathway.

Private Efforts

Several shipping companies have set ambitious climate targets for themselves, even beyond what regulators have imposed. These firms don’t just look to trade credits and buy carbon offsets to meet their targets. They aim to decarbonize the ships completely, ensuring that the largest vehicles on earth have zero impact on the climate.

Western Efforts

One of the largest container shipping companies in the world, Maersk, has moved up its deadline for achieving net-zero greenhouse gas emissions to 2040. Earlier, the shipping industry giant had set the deadline of 2050 for the same. On the way, the company also aims to cut its emissions per container by 50 per cent and emissions at its terminals by 70 per cent by 2030.

Mediterranean Shipping Company S.A. (MSC), another European heavyweight, also set a 2050 net-zero goal. Recently, CMA CGM Group and WWF France have partnered to decarbonize shipping and logistics, which also includes strengthening the fight against illicit trafficking in protected species and preserving marine ecosystems. CMA CGM also commits to achieving Net Zero Carbon by 2050.

Asian Efforts

Chinese COSCO Shipping Holdings (COSCO) is also aiming to achieve carbon neutrality. Unlike its European counterparts, the Asian Shipping major aims to achieve this target by 2060 by using clean fuel, renewable energy, and ships with green passports. The state-owned organisation is also looking to reduce the GHG emission intensity of its container shipping business by 12 per cent (compared with 2019) and its holding terminals by 20 per cent (compared with 2020) by 2030.

Mitsui O.S.K. Lines (MOL) of Japan aims to achieve group-wide net-zero GHG emissions by 2050 as well. To achieve this, MOL has set two additional mid-to-long term targets: deploy ocean-going vessels having net zero emissions in the 2020s; and, reduce GHG emissions intensity by approximately 45 per cent by 2035.

Taiwanese Evergreen Marine Corp. strategizes to support sustainable operations and set targets for CO2 reduction. A 50% reduction by 2030 is planned, compared to 2008 as the baseline. Evergreen aims to be carbon-neutral by 2050.

Clydebank Declaration

Clydebank Declaration was launched by the UK at COP26, last year. The declaration, signed by 19 countries aims to set up green shipping corridors, which are zero-emission maritime routes between 2 (or more) ports. Under the programme, the signatory countries will support the establishment of at least six green shipping corridors by 2025. This will require developing supplies of zero emissions fuels, the infrastructure required for decarbonisation and regulatory frameworks.