Global shipping emissions present new challenges and emerging solutions across New Zealand

August 5, 2024

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By Daniel Ranger, Marine surveyor, New Zealand

Global emissions from international shipping reached a staggering 710 million metric tonnes of CO2 in 2022, accounting for approximately 3% of total global emissions. Despite this significant contribution, international shipping emissions were notably excluded from the Paris Agreement in 2015. If current growth trends continue unchecked, these emissions could skyrocket to account for 17% of global emissions by 2050. This alarming projection underscores the urgent need for effective solutions and stringent regulatory measures.

Domestic targets and international benchmarks

Countries around the world are beginning to address shipping emissions with varying degrees of urgency and ambition. The United Kingdom has integrated shipping emissions into its net-zero targets, while the European Union aims for an 80% reduction in greenhouse gases (GHG) from shipping by 2050. This includes initiatives such as shore power for ships. The United States is even more ambitious, seeking to achieve 100% zero GHG marine fuel by 2040. 

In contrast, New Zealand’s approach to shipping emissions is still evolving. As of 2016, New Zealand ranked 74th in emissions by country, with shipping contributing 9% of its total GHG emissions. From 2009 to 2019, New Zealand experienced a significant 51% increase in shipping emissions. The Climate Change Commission (CCC) in New Zealand has expressed concerns that the International Maritime Organisation’s (IMO) target of zero GHG marine fuels by 2040 may not be sufficient to prevent a global temperature rise of over 1.5°C. The CCC is currently consulting on this issue to provide well-founded recommendations to the government.

Green corridors: pioneering emission reduction pathways

Deploying global solutions at scale within the shipping industry is a complex endeavour. The industry is highly diverse, disaggregated and governed by the IMO, which represents the interests of 174 member countries. However, the concept of “green corridors” offers a promising pathway. These corridors are specific shipping routes where comprehensive, targeted regulatory measures, financial incentives and safety regulations are implemented. Such an ecosystem enables a subset of the industry to pioneer the transition to lower emissions, serving as a model for broader application.

Innovations in green vessels

The transition to green shipping involves the development and deployment of various types of environmentally friendly vessels. Here are some key categories:

1. Ships that reduce marine pollution or improve energy efficiency

  • These vessels incorporate advanced technologies to minimise pollution and optimise fuel consumption, thus reducing overall emissions. 

2. Ships using environmentally friendly energy sources

  • These ships utilise alternative fuels such as biofuels, liquefied natural gas (LNG), or hydrogen, which have a lower carbon footprint compared to traditional marine fuels.

3. Electric propulsion ships

  • These vessels are powered by electricity, often sourced from renewable energy. They offer a significant reduction in emissions, especially if the electricity is derived from sustainable sources.

4. Hybrid ships

  • Combining traditional fuel engines with electric propulsion systems, hybrid ships offer a transition solution that reduces emissions while maintaining operational reliability.

5. Fuel cell propulsion ships

  • Utilising hydrogen fuel cells, these ships generate electricity through a chemical reaction between hydrogen and oxygen, emitting only water as a byproduct.

New Zealand’s path forward

New Zealand faces a unique set of challenges in addressing its shipping emissions. Given the significant increase in emissions over the past decade and the substantial share of total GHG emissions that shipping represents, urgent action is required. The CCC’s consultation process is a critical step in formulating effective policies. Key strategies for New Zealand could include:

  • Regulatory measures: Implementing strict emission standards and incentivising the adoption of green technologies among shipping companies.
  • Financial incentives: Providing subsidies or tax breaks for investments in green vessels and infrastructure, such as shore power facilities.
  • Collaboration and innovation: Partnering with other nations and industry leaders to share knowledge and best practices, fostering innovation in green shipping technologies. 

The challenge of reducing international shipping emissions is a global one, requiring concerted efforts from all nations. For New Zealand, the stakes are particularly high, given the significant contribution of shipping to its total emissions. By embracing innovative solutions such as green corridors and green vessels, and by aligning domestic policies with international benchmarks, New Zealand can play a pivotal role in the global effort to mitigate shipping emissions. The CCC’s ongoing consultation process will be instrumental in shaping a sustainable future for New Zealand’s maritime industry, ensuring it contributes to global climate goals while supporting economic growth and environmental protection. 

Our expertise 

Sedgwick’s marine team has a vast network of experts, many with prior practical marine industry experience. With a reputation for maintaining the highest levels of professionalism and embodying our caring counts philosophy, we always strive to find a solution to meet the needs of our clients and their customers. 

Learn more > Find out how we can help your organisation by contacting Daniel Ranger at [email protected]

Tags: environment, environmental, ESG, international, Legislative, regulatory and compliance for carriers, marine, marine and transportation, New Zealand, NZ, Property, Restoring property, shipping, vessel