Shell and Deloitte research suggests six critical actions to accelerate decarbonisation of shipping
All Hands on Deck 2.0 shows pockets of decarbonisation progress and urgency to advance transition.
London- Today, Shell and Deloitte have released All Hands on Deck 2.0, which shows some progress has been made toward decarbonisation of the marine sector. However, action and investment must increase in both size and pace to achieve the ambition of being net zero by 20501 – as shipping volumes are expected to increase in tandem with the growth of global trade.
The first edition of the report was published in 2020, identifying 12 tangible actions to decarbonise the industry. The latest publication, All Hands on Deck 2.0, includes an overview of progress across the marine sector, updates on the actions needed and assesses the prevailing views, sentiments and concerns in the sector.
With shipping businesses facing increasing pressure to decarbonise, driving a reduction in emissions in the near-to-mid-term period will be critical. Featuring research and analysis based on insights drawn from leaders2 across all segments of the shipping sector, All Hands on Deck 2.0 proposes six recommendations for shipping:
- Scale up pockets of demand: creating clearer signals of demand through natural demand aggregation for low-carbon fuels and low-emission vessels.
- Take a segment-specific approach: identifying common characteristics of each segment to allow for the prioritisation and tailoring of solutions, starting with first movers.
- Leverage local/regional regulation for momentum: driving progress as a means of advancing near-term material impact on total greenhouse gas (GHG) emissions for the shipping sector, while anticipating that global regulation will need to quickly follow to achieve a level playing field for working towards a net-zero target.
- Drive clarity on fuel pathways: increasing demonstration projects and investment in these would support first-mover decision making for both fuel suppliers and shipowners – and should recognise the complementarity of different pathways.
- Adopt an integrated view on asset improvement: recognising fleet composition is crucial in tackling the decarbonisation challenge and requires an integrated set of levers. These include efficiency measures, greater investment in dual-fuel-capable vessels, and increased modularity via retrofits – as well as sufficient newbuild and repair-yard capacity to undertake these changes.
- Activate the first green corridors: taking the steps to operationalise the first green corridors offers a concrete proof point that can be scaled from inter-regional impact to an eventual global one.
“Change is often the only certainty we have in the shipping industry, but the continued urgency to decarbonise is one constant that remains,” said Melissa Williams, President, Shell Marine. “All Hands on Deck 2.0 shows that action is under way. But crucially, it also shows that this action is not happening at the speed required by the energy transition, especially in areas such as infrastructure replacement and around roles and decision making. I therefore encourage organisations across the industry to carefully consider how to act next, and to reach out to a solutions provider, like Shell, who can help them overcome their decarbonisation challenges. Because, by working together, we can secure a brighter horizon for the entire shipping ecosystem.”
For more information and to download Decarbonising Shipping: All Hands on Deck 2.0, please visit www.shell.com/marine/decarbonising.
1 Throughout this report, “net zero” is used based on the definition of the Intergovernmental Panel on Climate Change (IPCC), which defines net zero as the state where “anthropogenic emissions of greenhouse gases to the atmosphere are balanced by anthropogenic removals over a specified period”. The IPCC notes that its models indicate limiting global warming to 1.5C would require global achievement of net zero emissions by 2050.
2 Research participants: 14 CEOs/senior execs/owners, 9 operational sustainability experts, 3 policy experts, 6 shipowners/operators, 4 customer organisations, 4 financiers/legal bodies, 4 port authorities/operators, 6 regulators/standards/NGOs and 2 technology providers – as well as stakeholders representing the APAC, Americas and EMEA regions.
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With 80,000+ employees across 70+ countries, Shell works with global industries to accelerate the transition to net-zero emissions by providing more and cleaner energy solutions. Shell’s target is to become a net-zero business by 2050, which supports the ambitious goal to tackle climate change laid out in the UN Paris Agreement: to limit the rise in average global temperature to 1.5° Celsius.
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