Achieving carbon-neutral shipping requires a bold, comprehensive strategy that blends cutting-edge green technologies with smart carbon offset investments. The goal is clear: to propel the shipping industry towards the International Maritime Organization‘s (IMO) ambitious net-zero emissions target by 2050.
Every IMO member state has united in a groundbreaking commitment to slash greenhouse gas emissions in international shipping. The roadmap is ambitious:
- By 2030, 5-10% of the energy powering global shipping must come from zero or near-zero GHG sources.
- By 2040, total emissions must drop by 70-80%, regardless of trade growth.
- By 2050, the ultimate goal is to reach zero emissions – or as close as possible – transforming the industry for a sustainable future.
Meeting these targets involves recording, reporting, and actively reducing emissions – a complex task that can feel overwhelming.
To support you on this journey, Pole Star Global has crafted an actionable 8-step guide on how to achieve net zero, beginning with carbon-neutral shipping. This guide uses the 4 Cs framework – Conserve, Competence, Clean, and Capture – for emission reduction and offsetting.
Shipping Emissions: Unpacking the Climate Impact of Global Shipping
Over the past few decades, carbon emissions from shipping have surged alongside the growth in global trade and production. Today, the shipping industry accounts for 3% of the world’s total emissions – matching the output of the aviation sector.
Looking ahead, the International Maritime Organization (IMO) projects that global shipping volumes will increase by 2-4% annually until 2050. If this trend continues, the shipping industry could contribute to a 10% rise in global emissions by mid-century.
To effectively combat climate change, maritime players must address their carbon footprint head-on. This is where carbon-neutral shipping becomes crucial. In this article, you’ll learn how to achieve carbon neutrality. Specifically, you will learn:
Carbon-neutral shipping aims to balance out the carbon emissions from shipping with an equivalent amount of carbon emissions removed, so there’s no overall increase in carbon dioxide in the atmosphere. Here’s how it works:
- Carbon Emissions From Shipping Are Reduced: Initiatives cut carbon emissions from operations. This includes improving supply chains and voyage routes while also switching to greener fuels for ships.
- Carbon Emissions Are Removed From the Atmosphere: This involves investing in projects that take carbon out of the air.
As mentioned, carbon-neutral shipping is crucial for meeting IMO’s net-zero emissions goal by 2050. However, it’s important to remember that net-zero and carbon-neutral aren’t exactly the same thing. This is explained further below.
Carbon Neutral vs Net Zero: Net Zero Shipping Relies on Carbon Neutrality
Net zero goes beyond carbon neutrality by cutting down on all types of greenhouse gas (GHG) emissions, not just carbon dioxide. That is, carbon dioxide is only one of several GHGs that contribute to rising global temperatures. Other, notable GHGs include methane, nitrous oxide, and water vapour.
By addressing these other GHG gases, net zero offers a more comprehensive approach than carbon neutrality. And so, with net zero, you demonstrate a stronger commitment to reducing emissions from all sources.
However, since carbon dioxide is the largest cause of human-driven global warming, achieving carbon neutrality is your first crucial first step toward reaching net zero.
The Paris Climate Agreement was a groundbreaking milestone, uniting nearly 200 countries in the fight against global warming at the 2015 UN Climate Change Conference in Paris.
The main goal of the agreement is to keep global temperatures from rising more than 2°C above pre-industrial levels. This requires working with key industries to drastically cut emissions, raising the question: What does this mean for maritime trade?
Applying the Paris Agreement to shipping is tricky. There’s still a lot of confusion about whether emissions from ships are actually covered.
Some believe the agreement’s push to “cut emissions across the entire economy” certainly encompasses maritime trade. However, the International Chamber of Shipping contends otherwise, arguing that shipping is not explicitly mentioned in the agreement.
To clarify this uncertainty, the IMO has taken the lead in driving emission reductions in the shipping industry. The significance of IMO’s efforts is clearly highlighted by Peter Hinchliffe:
“CO₂ is a global problem and shipping is a global industry. IMO is the only forum which can take account of the UN principle of ‘differentiation’ while requiring all ships to apply the same CO₂ reduction measures, regardless of their flag State. Unilateral or regional regulation would be disastrous for shipping and disastrous for global CO₂ reduction, whereas IMO is already helping shipping to deliver substantial CO₂ reductions on a global basis” – Peter Hinchliffe, Former ICS Secretary General
Peter Hinchliffe emphasises that the IMO is the only global organisation capable of effectively managing carbon emissions from shipping. This is because the IMO uses the idea of “differentiation,” meaning it understands that different countries and ships have different abilities and responsibilities. Still the IMO enforces the same CO₂ reduction rules for all ships, no matter where they’re registered.
Hinchliffe warns that if individual countries or regions created their own shipping emission rules, it could cause confusion and hurt global CO₂ reduction efforts. Instead, the IMO provides a unified approach that drives significant CO₂ reductions worldwide.
So, what new laws has the IMO introduced to push for net-zero shipping? Listed below are key regulations you should know about.
- IMO’s Energy Efficiency Design Index (EEDI): The EEDI was the first global rule to reduce emissions from shipping. The EEDI, which became effective in 2013, mandates that all new ships be built with energy efficiency in mind.
- IMO’s Ship Energy Efficiency Management Plan (SEEMP): Under SEEMP rules, owners and operators must keep track of how much energy their ships use and follow a structured approach to manage and improve energy performance.
- EU Emissions Trading System (EU ETS): This key European policy aims to cut GHG emissions by capping the total amount of emissions allowed. It now applies to ships over 5,000 gross tonnage operating within the European Economic Area (EEA). These ships must purchase emission permits that cover a portion of their greenhouse gas emissions each year.
- Mediterranean Sea Emission Control Area (ECA): As part of its broader initiative to reduce shipping emissions, the IMO is pushing for a global sulphur cap on marine fuels. For example, the Mediterranean ECA controls sulphur oxides and particulate matter emissions in the region, helping to clean up the air and protect the environment.
However, despite these regulations, there’s a growing need for tougher and expanded efforts to make shipping more sustainable.
For instance, although the IMO’s EEDI has been in place since 2013, studies indicate that many vessels are still not as efficient as hoped. Any improvements in efficiency seen so far have largely been linked to changes in the economy and fuel prices, rather than the EEDI standards themselves. Hence, current rules might not be enough to make a real, lasting difference.
On the bright side, this opens up huge opportunities for cutting emissions further that haven’t been fully tapped into yet. This calls for stricter rules, better communication and collaboration, and the use of advanced technologies.
With this in mind, the COP26: Clydebank Declaration has championed the creation of green shipping corridors to lead the way toward carbon-neutral and, eventually, net-zero shipping. These green corridors serve as ideal test hubs where different groups work together to quickly cut emissions and achieve carbon neutrality and net zero.
To learn more about green shipping corridors, check out: “Green Shipping Corridors: How to Boldly Meet Net Zero”.
To achieve carbon neutrality in green shipping corridors and beyond, a comprehensive approach is essential. To help you navigate this journey, Pole Star Global’s 8-step guide uses the simple but powerful acronym: Conserve, Competence, Clean, and Capture.
With these four Cs as your guide, you’ll develop a powerful strategy for meaningful emission reductions. This acronym is explained further below to propel you toward success.
- Conserve: This means finding ways to save energy in your operations by adjusting your output. Improvements are made by better planning shipping operations and routes to use less fuel. Effective strategies include voyage optimisation and slow steaming, both of which are explained in detail in the guide below.
- Competence: This means figuring out how to use less energy while still achieving the same results. In other words, you want to create more energy-efficient systems. Examples include polishing propellers, cleaning ship hulls, using wind power to drive ships, and reducing waste heat. Competence also means ensuring your team has the right skills, tools, and knowledge to carry out your carbon reduction plans. This demands investments in training, staying up-to-date with the latest technology, and understanding current regulations.
- Clean: Clean means using green fuels to run your operations. Green fuels are energy sources that release fewer GHG emissions than fossil fuels. Examples include ammonia, e-hydrogen, and biofuels.
- Capture: Any leftover emissions need to be balanced by investing in projects that remove emissions from the air. The idea is simple: if you remove the same amount of emissions as you produce, your total emissions can balance out to zero.
To help you put the above acronym into practice and achieve carbon neutrality, Pole Star Global has created the following 8-step guide. This guide is designed to assist you in reducing emissions from your operations while neutralising your remaining carbon footprint.
Step #1 – Measure: Assess Your Current Impact and Set Ambitious Goals
To cut your carbon footprint effectively, you first need to understand your current level of emissions. This baseline will help you track progress and plan future reductions. Pole Star Global’s Podium5 emissions module is the ideal tool for this.
With Podium5’s onboard interface, your vessels seamlessly report emissions and performance data. This real-time information feeds into Podium’s dynamic dashboards, giving you clear visibility and control.
Using this data, Podium5 offers detailed reports on voyage emissions, annual emissions, and fleet rankings, allowing you to pinpoint emission hotspots and focus your efforts on these areas first. These emission reports also serve as benchmarks, essential for tracking your progress as you move forward.
Next, use your current emission calculations to set quarterly and yearly reduction targets. These milestones should guide you toward your ultimate goal of carbon neutrality by 2050, in line with the International Maritime Organization’s targets.
Step #2 – Conserve: Optimise Shipping Routes
Conserving energy in your business means changing how you operate to cut down on carbon emissions. In maritime trade, this involves fine-tuning shipping routes to use less energy when travelling from point A to point B. This means reducing:
- Distance travelled
- Total time ships are running
- Exposure to bad weather
- Ship speed
Each of these factors contributes to lower fuel consumption and fewer greenhouse gas emissions.
How to Minimise Distance Travelled, Avoid Bad Weather, and Reduce Time at Sea
AI-powered systems are excellent tools for finding the best shipping routes. These systems analyse real-time weather and ocean conditions to suggest the most efficient paths.
However, human intuition is still crucial for interpreting this data, verifying results, and making improvements. This is where Pole Star Global’s Podium5 Fleetweather module truly excels.
Fleetweather combines advanced algorithms and AI to process data quickly, while marine experts refine these results. This powerful combination provides incredibly accurate and efficient routing. For example, Fleetweather helped one client save $50,000 by using weather and current forecasts, along with total distance measures, to recommend the best paths. This reduction in fuel costs also translates to lower greenhouse gas emissions.
To learn more, download the full case study here: Case Study: Unlock Hidden Savings with FleetWeather’s Optimised Routing
Other studies support Pole Star Global’s findings – that AI technology and automation can lead to significant fuel savings. For instance, one company reduced their fuel use by 10% using an AI-powered routing solution.
How to Reduce Ship Speed With Slow Steaming
Slow steaming involves running a ship at speeds slower than its maximum capacity. This method helps cut fuel use and consequently lowers greenhouse gas emissions.
Here’s how it works: Fuel consumption increases exponentially with speed. This means even a small increase in ship speed leads to a big jump in fuel use. This is because, as a ship speeds up, it encounters more water resistance (drag), requiring more power and, therefore, more fuel.
Reducing a ship’s speed by just 20% can lead to a remarkable 24-34% drop in emissions.
Yet, if every ship slowed down, more ships would be needed to carry the same amount of cargo. Could this increase total industry emissions from building and operating these additional vessels? Studies show that, even when considering this as a factor, a 10% speed reduction across all ships could still lead to an overall 19% decrease in CO₂ emissions from maritime trade.
Showcasing slow steaming in action, Danish shipping giant Maersk reduced ship speeds to 10-15 knots, down from the usual 25 knots. Despite initial concerns about potential engine damage from soot build-up or loss of lubrication, Maersk’s extensive testing has shown that slow steaming does not cause any technical, operational, or safety issues.
To implement slow steaming, consider upgrading your autopilot systems to help maintain optimal speed.
Step #3 – Competence: Upgrade Your Fleet Using Green Technology
The next step toward carbon-neutral shipping is demonstrating competence, which means achieving the same results while using less energy. In other words, it’s about being more efficient. Here are some strategies and technologies you can use to reduce greenhouse gas emissions from ships without impacting their operational output:
- Propeller Polishing: Cleaning and smoothing the ship’s propeller reduces friction and resistance in the water. This makes the ship more efficient, allowing it to travel at the same speed with less fuel, which lowers CO₂ emissions.
- Water Flow Optimisation: Improving the design of the ship’s hull and propulsion system reduces water resistance. Less drag means the ship needs less energy to move, which cuts down on fuel use and emissions.
- Propeller Upgrades: Newer propeller designs make better use of engine power, so the ship uses less energy for propulsion. This leads to lower fuel consumption and fewer emissions.
- Hull Cleaning: Removing marine growth like algae and barnacles from the hull lowers drag, so the engine doesn’t have to work as hard to maintain speed. This results in less fuel use and reduced CO₂ emissions.
- Air Lubrication: Systems that create air bubbles along the hull reduce friction between the hull and the water. This decreases resistance, lowers fuel consumption, and cuts GHG emissions.
- Hull Coating: Special paints or coatings keep the hull smooth and prevent marine growth. This reduces friction and drag, improving fuel efficiency and lowering emissions.
- Wind Power: Using sails, kites, or rotor sails to harness wind energy helps reduce the need for fuel-powered propulsion. This alternative energy source can significantly lower fuel use and emissions.
- Waste Heat Reduction: Systems that capture and use heat from the ship’s engines reduce fuel consumption and emissions.
- Main Engine Retrofits: Upgrading engines with more efficient technology reduces fuel use and boosts overall efficiency, leading to lower emissions.
- Speed-Controlled Pumps and Fans: Systems that adjust their speed based on demand, rather than running at full power all the time, save energy and reduce overall fuel consumption and greenhouse gas emissions.
- Solar Panels Onboard Ships: Solar panels generate renewable energy, reducing the need for fuel-burning generators, lowering fuel consumption and emissions.
Some of the options presented above require more investment than others. Therefore, it’s recommended you start with the “low-hanging fruit” initiatives first. This refers to practices that are cost-effective and offer quick results. The idea here is that early successes will help you and your team stay motivated as you work toward carbon neutrality.
Step #4 – Competence: Empower and Train Your Key Players
To achieve carbon neutrality, it’s essential to involve all key stakeholders. This means getting everyone in your supply chain aligned toward the same goal.
Here’s how to engage your stakeholders effectively, broken down into three stages:
- Stage 1 – Identify Key Stakeholders: Identify and list the stakeholders who need to be involved. Include all of your:
- Suppliers
- Partners
- Customers
- Employees
- Stage 2 – Share Your Vision: When communicating your carbon neutrality plan, ensure your message is:
- Clear: Create a straightforward plan that explains what you’re doing, why you’re doing it, and how it will reduce emissions.
- Persuasive: Highlight the benefits of your strategy, both environmental and economic. Explain how your efforts will positively impact stakeholders and the community at large.
- Stage 3 – Work Together: Build a collaborative approach with each stakeholder group. This includes:
- Suppliers and Partners: Collaborate with your suppliers and partners to assess their carbon footprints and find ways to cut emissions throughout the supply chain. Encourage them to adopt sustainable practices that align with your carbon-neutral goals.
- Customers: Inform your customers about your carbon-neutral initiatives. Use product labels, update your website, and run marketing campaigns to keep them informed and engaged.
- Employees: Involve your team by hosting sustainability training and workshop events. Reward employees for adopting sustainable practices. Encourage their ideas and feedback to foster a strong culture of sustainability.
By following these three stages, you’ll create a unified approach, driving everyone toward a common goal of carbon neutrality.
Step #5 – Clean: Switch to Alternative Green Fuels
The main goal of achieving carbon neutrality is to eliminate reliance on fossil fuels. This means replacing traditional fuels, like Liquefied Natural Gas (LNG) and Heavy Fuel Oil (HFO), with green fuels. Green fuels are designed to produce fewer GHG emissions and have a lower environmental impact.
To meet your 2050 targets, you need to ensure that 5% of your fuels are zero-emission options by 2030. This demands investing in electric motor engines that run on e-methanol, ammonia, and/or hydrogen. Here’s a closer look at these fuel options:
- E-Methanol: Also known as electro-methanol, this synthetic fuel is created by mixing hydrogen (obtained through electrolysis that splits water using renewable energy) with carbon dioxide (CO₂). The CO₂ used is captured from the air or industrial processes. When burned, e-methanol primarily produces CO₂ and water vapour. When produced using renewable energy, the CO₂ released is balanced by the CO₂ captured during production, resulting in a net-zero CO₂ output.
- Ammonia: Nitrogen is extracted from the air (through a process called distillation) and combined with hydrogen (obtained by splitting water through electrolysis). This creates ammonia. When burned, ammonia releases nitrogen (N₂) and water vapour (H₂O), making it a clean fuel. When produced using renewable energy, ammonia does not rely on fossil fuels.
- Hydrogen: Hydrogen fuels are produced by splitting water using electricity from renewable sources. When used in fuel cells or combustion engines, hydrogen generates only water as a byproduct, making it a clean option.
The transition to these alternative green fuels is already in progress. Major shipping companies like Maersk, Evergreen, CMA CGM, and COSCO are ordering vessels that can use both methanol and methane. For example, Maersk’s first dual-fuel vessel completed its maiden voyage in August 2023, travelling from South Korea to Denmark using a combination of green methanol and fuel oil.
Additionally, ports in Rotterdam and Singapore have set up storage facilities for green fuels like ammonia and methanol. In September 2023, the first methanol-powered container ship, Laura Maersk, sailed between these ports, achieving (up to) a 65% reduction in GHG emissions compared to traditional fossil-fuel engines.
To find out more, read: Green Shipping Corridors: How to Boldly Meet Net Zero
Step #6 – Capture: Offset Remaining Emissions
After you’ve tracked and reduced your emissions through steps #1-5, any remaining emissions will be unavoidable. This is where carbon offsets come into play.
Carbon offsets allow you to balance out the emissions you can’t eliminate by investing in projects that reduce or capture GHGs elsewhere. Here’s how it works:
Greenhouse gases mix in the atmosphere, so if you invest in projects that remove as much CO₂ as you produce, your total emissions can balance out to zero. That is, the projects you support will take a certain amount of CO₂ out of the air, which you can then subtract from your total emissions.
For example, if your operations produce 10 tons of unavoidable CO₂, and you invest in offset projects that remove 4 tons of CO₂, this reduces your effective CO₂ emissions to 6 tons (10 tons – 4 tons). To achieve carbon neutrality, you would need to invest in additional offset projects to remove the remaining 6 tons of CO₂ from the atmosphere.
The projects you invest in could include habitat restoration, carbon capture, or renewable energy initiatives. To get started, find a trustworthy offset provider and build a diverse portfolio of different projects.
When choosing an offset provider, follow these five important rules:
- Rule #1 – Ensure the offsets are linked to your own emission reductions: Offsets should complement, not replace your efforts to cut emissions.
- Rule #2 – Check when the offsets will actually take effect: Avoid counting on emission reductions before they are confirmed.
- Rule #3 – Choose projects that are unique and not just things that would have happened anyway: For example, through government initiatives.
- Rule #4 – Look for a plan that ensures the projects will have a lasting impact: This means they won’t fall through. For example, reforestation projects are risky as forests can be destroyed by fire or logging.
- Rule #5 – Ensure the projects benefit local communities and protect ecosystems: Do not harm local communities or ecosystems. For instance, environmental support should not come at the expense of local people. Plus, climate change mitigation projects should not negatively impact biodiversity or other environmental concerns.
By carefully selecting and managing your carbon offsets using the above five rules, you can ensure your efforts achieve carbon neutrality and are successful and meaningful.
Step #7 – Re-Measure: Keep Track and Celebrate Your Progress
Keep a close eye on your emissions even after your plan for carbon neutrality is in place.
Conduct routine checks and review your emissions every few months and annually. Refer to step #1 for guidance on tracking and recording your emissions.
Compare your progress to the benchmark you set in step #1. Adjust your goals as needed, but make sure they still challenge you to reach that ambitious net zero target for 2050.
Step #8 – Report: Regularly Report on Your Progress
The final step is to formally report your emission data regularly. Use Pole Star Global’s Podium5 emissions module to streamline your reporting process for CII, EU and UK MRV, DCS, and Sea Cargo Charter.
For European operations, Podium5 integrates with leading verifiers like DMV and Verifavia, making it easy to settle your EU ETS accounts, whether you’re handling them voyage by voyage or preparing for your annual EU and IMO DCS filings.
Podium5 ensures your reports are easily accessible to key stakeholders. This will help maintain transparency about your carbon neutrality goals, efforts, challenges, and progress.
Navigate Your Way to Net Zero with Pole Star Global’s Podium5
With global shipping accounting for 3% of the world’s emissions, the industry’s contribution to climate change cannot be ignored.
Becoming carbon-neutral is just the first step. It involves using new methods to cut emissions, switching to greener fuels, and making up for any emissions that can’t be avoided. The goal is to meet the International Maritime Organization’s target of net zero emissions by 2050. Having a solid plan for carbon neutrality will help you reach this goal.
Adopting a comprehensive approach is key. The Four Cs – Conserve, Competence, Clean, and Capture – provide a practical framework for achieving meaningful results. This framework, detailed in Pole Star Global’s 8-step guide, gives you a clear path to start achieving carbon-neutral shipping.
These steps are more than just suggestions -they’re a call to action for everyone in the industry to work together for a cleaner, greener shipping sector. The time to act is now. Take on the challenge and lead the way to a more sustainable future in shipping.
To reach your carbon neutrality and net zero goals, you need the right tools and technology by your side. Pole Star Global’s Podium5, with features like Voyage Optimisation and emissions recording and reporting, can help you improve fuel efficiency and reduce emissions. Plus, stay ahead of new regulations to ensure compliance at all times. Get in touch today to get started!