Governments are increasingly joining the United Nations International Maritime Organization's (IMO) goal of decarbonizing shipping. In this context, the shipping industry is urgently requesting the approval of its proposal to establish a $5 billion research and development fund to catalyze the industry's transformation away from fossil fuels and toward carbon-free energy sources.
Although total emissions from shipping are approximately 7% lower than in 2008, there is a technological limit as long as there is no alternative to fossil fuels and the demand for shipping continues to grow. The IMO's target of reducing total emissions by at least 50% by 2050, compared to 2008, will only be possible with the identification and development of new zero-carbon technologies so that viable ships using that technology can begin operating in the 2030s.
“As leaders in responsible tourism practices, CLIA, along with other maritime industry partners, has proposed establishing and funding a $5 billion Research and Development Council,” said Kelly Craighead, President and CEO of the Cruise Lines International Association (CLIA). “The industry continues to look beyond 2020 and is committed to working collaboratively across the sector to identify new technologies and energy sources that will enable us to achieve the IMO’s ultimate goal of zero carbon emissions across the entire fleet.”.
Several potential solutions exist, such as hydrogen or ammonia produced from renewable energy sources, but they are not yet available on a scale or in a form applicable to large ships. A number of complex technical questions remain unanswered, including considerations of safety, storage, distribution, energy density, and life-cycle impacts.
To this end, the shipping industry has proposed a $5 billion R&D program, to be overseen by the IMO and funded through an R&D contribution of $2 per tonne of marine fuel purchased by shipping companies for their own use. The R&D program would be managed through a non-governmental research and development organization: an International Maritime Research and Development Board (IMRB). The co-sponsors emphasize that for the proposal to succeed, all shipping companies worldwide must contribute fairly and equitably, and that the necessary funds must be generated to achieve the program's objectives.
Several governments view this proposal positively, subject to addressing issues such as governance.
The industry is eager to work with governments to ensure this initiative is implemented as soon as possible. It also calls on the IMO's Marine Environment Protection Committee to support the development of the IMRB concept at its meeting beginning in November. The IMO's climate goals can only be achieved by immediately accelerating the adoption of carbon-free fuels and technologies, and the IMRB is a crucial vehicle for driving the progress needed to build a carbon-free shipping industry.
Key features of the proposed International Maritime Research and Development Council (IMRB):
• The IMRB would be quasi-independent, subject to IMO oversight, with the sole mandate to accelerate R&D of low- and zero-carbon fuels, energy sources, propulsion systems, and other new greenhouse gas reduction technologies, operating under a charter approved by the IMO.
• An International Maritime Research Fund (IMRF) would provide industry funding for IMRB R&D programs, raising approximately $5 billion over a ten-year period through required contributions of $2 per tonne of fuel consumed by each ship.
• Other relevant stakeholders, such as energy providers, technology companies, research and development institutions, and foundations, could participate in and contribute to the International Maritime Research Council and its work.
• The IMRB should complete its mission within 10-15 years and deliver R&D projects that would enable companies to implement proven technologies and services across the global fleet during the 2030s, thus enabling the IMO's 2050 target to be met.
• The shipping industry organizations behind the proposal emphasize that the $2 contribution should be viewed with a defined technical purpose: accelerating R&D for carbon-free propulsion systems.
