New initiative launched at COP29 to accelerate uptake of zero-emission fuels by 2030

November 12, 2024, by Naida Hakirevic Prevljak

At the 2024 UN Climate Change Conference (COP29) in Baku, Azerbaijan, global industry leaders have committed to increasing the uptake of zero or near-zero GHG emission shipping fuels to at least 5%, striving for 10%, by 2030.

As informed, more than 50 leaders across the spectrum of the shipping value chain — e-fuel producers, vessel and cargo owners, ports, and equipment manufacturers — have signed a Call to Action today to accelerate the adoption of zero-emission fuels.

Organized by RMI, the UN Climate Change High-Level Champions, the UCL Energy Institute, and the United Nations Foundation, the Call to Action is said to demonstrate “strong industry momentum to invest in decarbonisation through scalable zero-emission fuel pathways”.

The joint statement calls for “faster and bolder” action to increase zero and near-zero emissions fuel uptake, investment in zero-emissions vessels, and global development of green hydrogen infrastructure, leaving no country behind.

“We are proud to be part of this initiative dedicated to expand the production of green hydrogen as a marine fuel or as an enabler for synthetic zero to near-zero carbon fuels. One of the biggest tasks ahead of us is developing a robust and reliable green hydrogen supply chain to deliver zero carbon fuels to vessels in key maritime hubs in ways that are safe, sustainable and that benefit all shipping stakeholders, particularly seafarers and port communities,” James Forsdyke, Managing Director of the Lloyd’s Register Maritime Decarbonisation Hub, commented.

The Call to Action comes as the maritime industry awaits the Marine Environment Protection Committee’s (MEPC) milestone convening in April 2025, where global regulatory architecture will be set for a global fuel standard and a greenhouse gas pricing mechanism to achieve the International Maritime Organization’s (IMO) Revised 2023 GHG Strategy’s ambition of achieving net-zero emissions in the maritime sector by 2050.

Industry members are sending a strong signal to global regulators ahead of this convening that clearly defined regulation is needed to strengthen the business case to complement and amplify industry momentum towards decarbonization.

“Nearly a decade after the adoption of the Paris Agreement, the time is now for governments and industry to line up behind an ambitious, IMO-mandated trajectory and mechanisms to drive shipping emissions reductions. Next year’s IMO meetings will consider what is likely the single most important policy decision for driving a new international market for zero-emissions fuels, in turn delivering a massive lift to the emerging green hydrogen market and the important projects required to supply it,” Alex Hewitt, Co-founder and executive board director of CWP Global, highlighted.

In anticipation of this regulatory milestone, the signatories outline several key recommendations to expedite the adoption of hydrogen-derived fuels, namely the need for clear, ambitious mid-term measures; a balanced approach to revenue distribution to help bridge the cost gap between fossil fuels and scalable zero-emission fuels (SZEFs); and evidence that key milestones for practical use of SZEFs are advancing.

To align with a 1.5°C pathway, global green hydrogen production must double by 2030, translating to the uptake of at least 5 million tonnes of green hydrogen in the shipping sector. To accomplish this, coordinated action is needed across the supply chain to expand the supply and adoption of zero or near zero-emission shipping fuels such as e-ammonia and e-methanol, build up the ecosystem synergistically, and deliver on a just and equitable transition.

Close collaboration between green hydrogen producers, shipping actors, and policymakers is said to be vital to securing the enabling conditions and investments that will deliver shipping’s clean energy transition.

“The Green Hydrogen Catapult is proud to support this initiative. Collaboration across the maritime value chain is key to an accelerated, just, and equitable transition of the sector to renewable fuels, and partnerships are key to building and maintaining momentum,” Oleksiy Tatarenko, the leader of RMI’s hydrogen initiatives and the Green Hydrogen Catapult, a coalition of green hydrogen market leaders promoting the aggressive global adoption of green hydrogen, pointed out.

Ports and port service companies, alongside financiers, have also added their support to the Call to Action, committing to investing in hydrogen-derived fuel infrastructure and safety projects to support bunkering of e-fuels.