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ICS AND RICARDO REPORT URGENT NEED FOR DECARBONISATION FUNDS

ICS AND RICARDO REPORT URGENT NEED FOR DECARBONISATION FUNDS

Wednesday, November 3, 2021 

A massive scaling up of finance for research and development is essential to achieve zero carbon emissions by 2050, according to a report by consulting engineer Ricardo and the International Chamber of Shipping (ICS)

A Zero Emission Blueprint for Shipping outlines the urgent steps that will be required to completely transform shipping’s current dominant propulsion technology and fuels landscape in under three decades.

To ensure shipping can achieve its ‘4th propulsion revolution’ the report highlights the need for a major scaling up of finance for technology and development in shipping. Latest figures from the International Energy Agency on private sector R&D in maritime reveals R&D spending has fallen from US$ 2.7bn in 2017 to US$ 1.6bn in 2019.

Launched to coincide with COP26 and ahead of pivotal meetings at the IMO, the report provides a blueprint for governments and industry to target their investment in innovation. Ricardo has identified a list of more than 260 example R&D projects needed to overcome key technical and systemic challenges and accelerate the transition to zero-carbon emissions in shipping. An estimated cost of US$ 4.4bn would be needed to fund these projects.

Of the hundreds of projects, 20 example projects in hydrogen, ammonia and battery power have been presented in greater detail, serving as a potential blueprint for R&D projects to be commissioned in the future. The example projects were picked on the basis that they are ‘high priority’ and give the broadest coverage of zero carbon fuel and technology options available to the sector. Many of the projects identified will take between one to six years to reach commercialisation.

Shipping has put forward a submission to its UN body for the approval of a US$ 5bn R&D fund, created solely from contributions by industry. This report makes clear just how essential this fund is to equitably advance alternative technologies and fuels needed at the required pace and scale to decarbonise the global shipping industry. Governments will be voting on whether to approve the fund at an upcoming event at the IMO, after COP26.

Colin McNaught, Director Strategic Growth & Development, Ricardo Energy & Environment said: “There are clearly large number of projects that are needed to deliver zero emission ships at scale, and beyond current pilot projects in the pipeline. Significant and long-term, high-risk investments will be required to trigger the step-change to advance technology readiness levels and deliver pilot these technologies.”

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