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Navigating Towards Cleaner Maritime Shipping Lessons from the Nordic Region

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Navigating Towards Cleaner Maritime Shipping Lessons from the Nordic Region CPB Corporate Partnership Board Navigating Towards Cleaner Maritime Shipping Lessons From the Nordic Region Decarbonising Transport Navigating Towards Cleaner Maritime Shipping Lessons From the Nordic Region Decarbonising Transport This report was funded by Nordic Energy Research, the platform for cooperative energy research and policy development under the auspices of the Nordic Council of Ministers. The International Transport Forum The International Transport Forum is an intergovernmental organisation with 62 member countries. It acts as a think tank for transport policy and organises the Annual Summit of transport ministers. ITF is the only global body that covers all transport modes. The ITF is politically autonomous and administratively integrated with the OECD. The ITF works for transport policies that improve peoples’ lives. Our mission is to foster a deeper understanding of the role of transport in economic growth, environmental sustainability and social inclusion and to raise the public profile of transport policy. The ITF organises global dialogue for better transport. We act as a platform for discussion and pre- negotiation of policy issues across all transport modes. We analyse trends, share knowledge and promote exchange among transport decision-makers and civil society. The ITF’s Annual Summit is the world’s largest gathering of transport ministers and the leading global platform for dialogue on transport policy. The Members of the Forum are: Albania, Armenia, Argentina, Australia, Austria, Azerbaijan, Belarus, Belgium, Bosnia and Herzegovina, Bulgaria, Canada, Chile, China (People’s Republic of), Croatia, Czech Republic, Denmark, Estonia, Finland, France, Georgia, Germany, Greece, Hungary, Iceland, India, Ireland, Israel, Italy, Japan, Kazakhstan, Korea, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Mexico, Republic of Moldova, Mongolia, Montenegro, Morocco, the Netherlands, New Zealand, North Macedonia, Norway, Poland, Portugal, Romania, Russian Federation, Serbia, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Tunisia, Turkey, Ukraine, the United Arab Emirates, the United Kingdom, the United States and Uzbekistan. International Transport Forum 2 rue André Pascal F-75775 Paris Cedex 16 [email protected] www.itf-oecd.org Case-Specific Policy Analysis Reports The ITF’s Case-Specific Policy Analysis series presents topical studies on specific issues carried out by the ITF in agreement with local institutions. Any findings, interpretations and conclusions expressed herein are those of the authors and do not necessarily reflect the views of the International Transport Forum or the OECD. Neither the OECD, ITF nor the authors guarantee the accuracy of any data or other information contained in this publication and accept no responsibility whatsoever for any consequence of their use. This work is published under the responsibility of the Secretary-General of the ITF. This document, as well as any data and map included herein, are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area. Cite this work as: ITF (2020), “Navigating Towards Cleaner Maritime Shipping: Lessons from the Nordic Region”, International Transport Forum Policy Papers, No. 80, OECD Publishing, Paris. Acknowledgements The authors of this report are Matteo Craglia, Lucie Kirstein, Pierpaolo Cazzola and Olaf Merk. The main authors of the chapters entitled “Technologies to decarbonise maritime transport” and “What could be the best fuels to decarbonise shipping?” are Matteo Craglia and Pierpaolo Cazzola. Lucie Kirstein and Olaf Merk are the main authors of the chapter entitled “Nordic region policies for the decarbonisation of the maritime sector”. The final chapter “Moving towards zero-carbon shipping” was written by all authors. The project was managed by Pierpaolo Cazzola at the International Transport Forum and Svend Søyland at Nordic Energy Research. The report is informed by desk research and contributions and insights that emerged during the ITF expert workshop “Prospects for Energy and Maritime Transport in the Nordic Region”, 26-27 February 2020 in Malmö, Sweden. This was a collaboration between the International Transport Forum (ITF), the Wold Maritime University (WMU) and Nordic Energy Research. Workshop participants are listed in the Annex. The authors would like to thank Svend Søyland (Nordic Energy Research – NER), Kevin Johnsen (NER) and Till Bunsen (International Transport Forum – ITF) for their inputs during the preparation of the report, and the following individuals (in alphabetical order) for their contributions and insightful comments during the review process: Kolbjørn Berge (Norwegian Maritime Authority), Åsa Burman (Lighthouse collaboration platform), Bryan Comer (International Council for Clean Transportation – ICCT), Zou Guangrong (VTT), Bart Hellings (GoodFuels), Anne Sophie Vinther Hansen (Vækstfonden – Sovereign Fund of Denmark), Julia Hansson (IVL Swedish Environmental Research Institute), Roel Hoenders (International Maritime Organisation – IMO), Rein Juriado (Trafikverket), Cecilie Larsen (EFerry), Francisco Laveron (Iberdrola), Cedric Philibert (Centre for Energy and Climate, French Institute of International Relations - IFRI), Christophe Pouts (Exxonmobil), Carlos Ruiz (International Renewable Energy Agency – IRENA), Gondia Sokhna Seck (French Institute of Petroleum and New Energies – IFPEN), Johannes Schürmann (GoodFuels), Renske Schuitmaker (FastNed), Tapio Siren (Neste), Jacopo Tattini (International Energy Agency) and Charlotte Voorhoeve (GoodFuels). Credit also goes to Jari Kauppila and Stephen Perkins at the International Transport Forum for their reviews. This work is part of the ITF Decarbonising Transport Initiative (DTI), a key instrument developed by the ITF to help governments and industry to translate climate ambitions into actions. The initiative brings together a partnership that extends far beyond the ITF’s member countries. Its work: tracks progress to evaluate how current mitigation measures contribute to reaching objectives for reducing greenhouse gas (GHG) emissions from transport develops in-depth sectoral and focus studies to identify effective policies in specific modes (e.g. road transport) and thematic areas (e.g. cities) brings policies together in a catalogue of effective measures, to support countries to develop their GHG emission mitigation strategy in transport supports the policy dialogue, leveraging on extensive engagement with the United Nations Framework Convention on Climate Change (UNFCCC), including the ITF’s designation as a focal point for transport of the Marrakech Partnership for Global Climate Action (MP-GCA). Funding for this work was kindly provided by Nordic Energy Research. Nordic Energy Research (NER) is a regional platform for co-operative energy research and policy development under the auspices of Nordic Council of Ministers. NER is based in Oslo, together with its sister organisations Nordforsk and Nordic Innovation. Nordic co-operation in energy research started in 1975, leading to common research funding since 1985 and the establishment of NER as an institution under the Nordic Council of Ministers in 1999. The governance structure of NER is closely connected to both the national governments of the five Nordic countries as well as the intergovernmental Nordic system. NER manages numerous projects and facilitates Ministerial working groups that provide input to energy technology policy making in the region. NER funds research that is of shared Nordic interest and that supports the region’s ambition to reduce carbon emissions and dependence on fossil fuels, and to create new growth industries based on green technology. It does so by expanding knowledge on sustainable energy and contributing to the development of new and competitive energy solutions. NER has been supporting research at the intersection of transport, energy and environment since its inception. In particular, NER funded research on electro-fuels, biofuels, fuel cells and electric transport. Projects funded by NER cover various modes of transport, including aviation, heavy freight, maritime transport, public transport and personal electric vehicles. For more information, visit: www.nordicenergy.org. TABLE OF CONTENTS Table of contents Executive summary ............................................................................................................................. 7 Introduction ...................................................................................................................................... 11 Technologies to decarbonise maritime transport .............................................................................. 13 Increased energy efficiency in new and existing ships .................................................................. 14 Alternative fuels ............................................................................................................................ 18 What could be the best fuels to decarbonise shipping? .................................................................... 35 Energy density ............................................................................................................................... 35 GHG emission reduction potentials ............................................................................................... 36 The potential to scale-up..............................................................................................................
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