Net zero aviation and shipping: Written evidence to the House of Commons Environmental Audit Committee
29 Sept 21
Abstract:
Pressure is increasing for international marine transportation to decarbonise, and no clear strategy for doing so yet exists
An estimated 2.9% of global greenhouse gas (GHG) emissions are produced by the marine transportation sector
Several technologies are strong candidates for shipping decarbonisation, and are at various stages of maturity in terms of development and adoption
Clean fuels have seen a substantial decline in cost resulting from technological advances, particularly in renewable power generation.
For zero-emissions shipping technologies to become commercially viable, greater regulatory support and a step change in financial investment is required
Similar cost differentials have been successfully overcome in recent years across various sectors, particularly renewable energy
Facilitating private investment into zero emissions shipping technologies is essential to the viability of clean shipping fuels at scale
The long-term success of any market-based mechanism requires both economic and legal feasibility and buy-in from key stakeholders
In a recently published report Oxford University researchers propose the use of a Contracts-for-Difference (CfD) scheme to encourage private investment and innovation in the development and uptake of technologies and fuels for zero-emissions shipping.
With the help of legal experts Pinsent Masons, the report provides two legally workable mock-ups of CfD Heads of Agreement specifically designed to support a technology-neutral incentive programme for the decarbonisation of international shipping.
Citation:
Ives, M., Larsson, L., and Clark, A. (2021). Written evidence to the House of Commons Environmental Audit Committee - ZAS0037 Net zero aviation and shipping.