Fuel Production Stakeholders Call for Ambitious Shipping Decarbonisation Policies

(Environmental Defense Fund) Companies and original equipment manufacturers commit to facilitating fuel demand ahead of MEPC 80 -- A group of fuel production stakeholders, including H2Carrier and MAN Energy Solutions, today joined Environmental Defense Fund in support for the full decarbonisation of the shipping industry by 2050. The companies call on International Maritime Organization (IMO) Member States to develop policies that incentivize the production and adoption of sustainable fuels, and to adopt ambitious interim targets for 2030 and 2040 to eliminate emissions from shipping in line with the 1.5 degrees Celsius temperature goal of the Paris Agreement. The request comes a few weeks before the 80th session of the IMO’s Marine Environment Protection Committee (MEPC 80) is set to revise its Initial Strategy on the Reduction of Greenhouse Gas Emissions from Ships.

Decarbonising the shipping industry rests largely on commercializing cleaner fuel alternatives and suitable technologies. A strengthened IMO Strategy on the Reduction of Greenhouse Gas Emissions from Ships – one that includes a commitment to eliminating the sector’s emissions on a full life cycle basis by 2050, ambitious interim targets, and a comprehensive policy package with other tools, such as a market-based measure and a fuel standard – is key to developing them at scale.

"This Call to Action gives International Maritime Organization Member States confidence that an ambitious decarbonisation pathway is attainable. Our signatories are ready to play their part in shipping’s transition away from fossil fuels. The message is clear, fuel and technology companies support maritime decarbonization in line with the 1.5 temperature goal by calling for ambitious interim targets and a Well-to-Wake approach to emissions, which will drive truly sustainable fuel production at scale." – Marie Cabbia Hubatova, Director, Global Shipping at Environmental Defense Fund

"While contributing to this call to action, we were reminded how much is at stake. Only through alignment of sufficient ambition between the fuel producers, regulators and maritime industry, can an effective transition to a sustainable future occur. This year, with no time to spare, we are certain that the three elements described form the critical basis of any revised strategy." – Conor and Sofia Fürstenberg Stott, Partners of Fürstenberg Maritime Advisory

“These commitments send a clear signal that fuel producers are ready to support full decarbonization of the shipping industry." "Now, it’s time for our world leaders to step up and bring an end to fossil fueled shipping by adopting an ambitious Revised GHG Reduction Strategy at MEPC80 -- with a Well-to-Wake approach to fuels’ emissions and interim targets to put us on track to peak and eliminate emissions in line with a 1.5 degree Celsius scenario." – Allyson Browne, Climate Campaign Director, Ports of Pacific Environment

"The maritime sector has an obligation to act and this Call to Action reflects a strong expectation that IMO will identify a clear path towards reaching a fully decarbonized shipping industry by 2050. Technology providers and sustainable fuel producers are pushing forward to ensure that the entire value chain will be in place to deliver on this goal. The timing for this Call is crucial and IMO’s actions can identify a clear path for the industry and for investors who will need to play a key role in this transformation." – Mårten Lunde, CEO of H2Carrier AS

“MAN Energy Solutions is in a unique position to assess the future-fuel mix based on our dual-fuel engine contracting, and we wholeheartedly believe that the prompt adoption of regulations that invite capital into the production of alternative, green fuels is a must; shipping urgently requires large volumes and thus scalability. To this end, we believe that a collective comprising players from the maritime, regulatory and political spheres can build enough momentum to achieve our decarbonisation aims." – Dr. Uwe Lauber, CEO of MAN Energy Solution

“The European Biodiesel Board fully backs this call for full shipping decarbonisation. European produced biodiesel is the most successful driver of road transport decarbonisation in history, delivering unprecedented GHG savings and reducing the use of fossil fuel. We are confident that, with ambitious targets and a true Well-to-Wake lifecycle assessment approach, International Maritime Organization policies will drive a similarly successful transition to cleaner fuels in maritime transport. We stand committed to meeting this demand, and ready to significantly contribute to this crucial global effort and supply the necessary renewable fuel.” – Cailean Iain Macleod, Technical and Regulatory Affairs Director of European Biodiesel Board

"InterContinental Energy will be producing green fuels at scale for the maritime sector, helping shipping companies to meet their 2030 goals as well as net zero by 2050. We support this Call to Action in order to provide the regulatory framework required to incentivize the reduction of greenhouse gas emissions, said Alicia Eastman, President of InterContinental Energy.” – Alicia Eastman, President of InterContinental Energy

Maritime shipping is central to the global supply chain. Climate pollution from ships accounts for 3% of global greenhouse gas emissions, and with the increasing demand to move goods, pollution from shipping is expected to grow significantly in the next two decades unless significant action is taken. Decarbonizing the sector no later than 2050 is critical to limit global warming in alignment with the 1.5 degree Celsius temperature goal of the Paris Agreement.