The International Chamber of Shipping (ICS), representing over 80% of world’s merchant fleet, has signed a Partnership Agreement with the International Renewable Energy Agency (IRENA) to support the decarbonisation of the shipping sector and its role in the transition towards a global energy sector based on renewables, according to ICS's release.
Signed during a meeting between the heads of the two organisations at the Twelfth Session of IRENA Assembly 2022, the partnership will provide a framework over the next two years for ICS and IRENA to assist with the decarbonisation of the shipping sector and the use of renewable technologies on this key sector of the global economy. It will also enable the industry to work closer with IRENA’s global membership of more than 160 countries and territories on issues related to the increasing role of renewable energy in decarbonising shipping.
The organisations will set up a regular exchange of information regarding energy supply and demand relevant to the shipping sector and exchange of data on scenarios of ‘future fuels’ (such as green hydrogen and ammonia), for both, nation states and the shipping industry. This partnership agreement draws particular focus on the need to ensure an equitable energy transition for developing economies, and the important role of capacity building as well as recognising the energy needs of shipping itself.
With new access to governments from 167 countries, ICS hopes that the agreement with IRENA will spur R&D investment from political decision-makers into making zero-carbon fuels widely commercially available. ICS presented at COP26 that nearly $5BN USD is needed to accelerate the shift in R&D to zero-carbon fuels in the shipping sector, as multiple nascent technologies need to be developed to reach large scale deployment. Shifting to alternative fuels such as hydrogen, ammonia, biofuels and electrification from renewable sources could cut 80% of emissions from maritime transport by 2050 as presented by IRENA. The Partnership Agreement will also see consultation between the two bodies with a view to combining capacity-building opportunities and avoiding duplication of resources.
The memorandum specifically identifies the opportunity that exists within developing nations, supporting the recently established ‘Just Transition Maritime Task Force’, which was founded at COP26 to drive decarbonisation of the industry.
Many seafarers come from developing nations, who are witnessing first-hand the effects of climate change. ICS wants these workers to be given green skills they need to keep global trade moving, and for developing nations to have access to the technologies and infrastructure to be part of shipping’s green transition.