As if being difficult and controversial was not enough, it is also extremely expensive. However, tough problems need innovative solutions, and the targeted halving of emissions from the shipping industry by 2050 offers enormous opportunities for startups.
“A new study by UMAS and the Energy Transitions Commission says that massive investment is required if the shipping industry is to meet IMO’s 2050 target to reduce emissions by at least 50% (from 2008 levels).
Undertaken for the Getting to Zero Coalition – a partnership between the Global Maritime Forum, the Friends of Ocean Action, and the World Economic Forum – the study states that, depending on the production method, the cumulative investment needed between 2030 and 2050 to halve shipping’s emissions would amount to between US$1-1.4Tn, an average of US$50-70Bn annually for 20 years.
And further investments of some US$400Bn over 20 years would be required if shipping is to fully decarbonize by 2050, bringing the estimated total to US$1.4-1.9Tn.
Shipping’s decarbonisation transition will require infrastructure investments in new fuel production, supply chains, and a new or retrofitted fleet, according to the study.”
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