The shipping industry accounts for roughly 3% of global greenhouse gas emissions. A far cry from meeting the goals of the Paris climate agreement. Big economies around the world like the US and EU are starting to draw up plans and policies to decarbonize the shipping sector in an effort to go green.
An industry as huge as the shipping sector facilitates the transport of 90% of all globally traded goods ranging from raw materials to finished products. Consumer goods are loaded and unloaded at ports by metric tons on a daily basis. As expected, this process consumes fuel and ships burn approximately 300m metric tons of fossil fuel each year. This in turn produces roughly 1 billion metric tons of carbon dioxide in the process.
As stated in the Paris climate agreement, the shipping industry will have to eliminate those carbon emissions by 2050 to reach the 1/5C global heating target. In lieu of this, stricter regulations are needed and the pressure on the shipping industry intensifies. It’s either they adapt or be grounded, which in turn could lead to a loss of revenue for the sector.
The Philippine shipping industry is affected by the climate crisis like many other countries. Stricter regulations passed on by global leaders in the sector and environment protection will pose a challenge to shipping companies in the country to adhere to the changes. For one, shipping companies will be required to give their vessels an A-E grade on energy efficiency and submit a plan of action to make sure that ships that receive a D or E grade will make the cut for three consecutive years.
What does this mean for ship management companies? For starters, it is forecasted that existing ships are to be retrofitted to accept green methanol—a type of fuel that significantly decreases carbon emissions compared to traditional bunker oil. Ammonia and hydrogen are also among newer fuel types that can be used for shipping vessels however they will require more modifications to ship designs to be sustainable in the long run.
This in turn requires better crew management. Ship crews will have to be trained in methods to load up these newer, green fuels into ships. Ship workers will have to undergo training not only when it comes to loading fuel but also in maintaining the systems that will be fitted into vessels. It will be yet another challenge when it comes to crewing but is an important one at that if Philippine vessels are to be seen plying global trade routes.
Ship services will have to drastically change for the local shipping industry. Once these newer types of synthetic fuels are approved and guaranteed to be safe and sustainable for the industry, more changes will follow in order to adapt to the new normal of the shipping sector.
While it is fraught with challenges and concerns, it is worthy to note that the sector is headed for uncharted territory when it comes to future viability and sustainability. The goal of achieving zero emissions is attainable with shared innovation and foresight among countries.
