International shipping emits more than 1 000 million tonnes of CO2e per year, and this number is projected to rise. According to the Fourth IMO Greenhose Gas (GHG) Study, shipping emissions represent 2,89% of the worlds GHG emissions. If the sector were a country, it would rank sixth in the world in terms of emissions.
The global shipping industry is essential to the functioning of our societies and economies, as 80% of global trade, by volume, is carried by sea. While the global nature of the industry makes it hard to regulate, the need for a green transition in the industry is clear. While both global and regional policy efforts are being made, responsible companies are starting to lead the way.
Both the International Maritime Organisation (IMO), the UN body for regulating global shipping, and the European Union, are major actors in shipping’s green transition. In 2018, in response to the Paris agreement, the IMO adopted an initial strategy to reduce the total annual GHG emissions by at least 50% by 2050, compared to 2008 levels.
The EU’s current emissions reduction target for 2030 is 40% compared to 2018 levels, and this is expected to be raised.
In 2018 the EU introduced the Monitoring, Reporting and Verification (EU MRV) scheme for monitoring and reporting CO2 emissions from global shipping. In 2019 the IMO introduced the equivalent Data Collection System (IMO DCS) on fuel consumption. The reporting schemes will make it easier to compare emissions data and prepare for the implementation of regulatory actions to cut emissions.
One of the main reasons that the uptake of new carbon and cost-efficient measures often is blocked, is due to a lack of reliable information. This shortfall of accurate and standardised information on energy efficiency in shipping leads to flawed or inefficient decision-making in companies.
Siglar works with responsible industry players to eliminate this market barrier and provides transparent emissions data to inform decision-making and to increase efficiency and sustainability in the shipping sector.
Update: In mid-September the EU parliament voted to including shipping in the EU emissions trading system (ETS) and to set binding targets for carbon efficiency reductions. On the 8th of October 2020 members of the EU parliament also called for a further raise in the total emissions reduction target to 60% in 2030.