Transport
Shipping
Decarbonising maritime transport for a sustainable future
Maritime transport is vital to the global economy, facilitating 80% of global trade, but it contributes approximately 2% of global greenhouse gas (GHG) emissions. Without action, shipping emissions could increase by 50–250% by 2050, making decarbonisation critical to achieving the Paris Agreement’s 1.5°C target.
Challenges in decarbonising shipping
The shipping sector faces several challenges on the path to decarbonisation:
- High emissions: CO2 accounts for 98% of shipping emissions, with methane (CH4) emissions rising due to increased use of liquified gas and methane slip during transport.
- Hard-to-Abate Sector: Electric technologies are currently feasible only for small vessels, leaving large-scale shipping reliant on alternative solutions.
- Fuel competitiveness: A zero-emissions fleet requires the development of cost-competitive energy sources to replace traditional fuels.
Path to decarbonisation
The shipping sector must achieve zero emissions by 2050, with zero-emission ships dominating the market by 2030.
Key strategies include:
- Improving shipping efficiency.
- Reducing the GHG intensity of fuels used by ships.
Purpose of the Shipping Criteria
The Shipping Criteria provide science-based standards to guide investments and financial decisions that accelerate the transition to zero-emissions shipping. Developed in alignment with the International Maritime Organisation’s (IMO) objectives, these Criteria aim to close the competitiveness gap for zero-emission technologies.
Key features of the Shipping Criteria:
- Assessment of energy efficiency:
Real-world performance is evaluated using metrics like Annual Efficiency Ratio (AER) and Energy Efficiency Operational Indicator (EEOI).
- Support for decarbonisation:
Financial instruments linked to the Criteria encourage investments in energy-efficient technologies and alternative fuels.
- Alignment with climate goals:
The Criteria ensure alignment with the 1.5°C target, accelerating the transition to a zero-emissions shipping sector.
Driving a greener shipping industry
By promoting sustainable financial instruments, the Shipping Criteria support the decarbonisation of maritime transport, enabling a swift and effective transition toward a greener shipping industry.
Resources
Certifications
To see the whole list of Shipping Climate Bonds, visit our Certified Bonds Dataset