Shipping's GHG Deal Means Major Investment with No Guarantee of Short Term Results: ABS

Tuesday May 15, 2018

After agreeing to reduce its emissions least 50% by 2050 and to zero as quickly as possible, the industry must prepare for a period of significant financial investment without any guarantee of short term results, according to Kirsi Tikka, Executive Vice President, Senior Maritime Advisor, American Bureau of Shipping (ABS).

However, given some of the previous experiences early adopters have had with using technology to comply with environmental regulations, the industry is unlikely to adopt any new GHG reduction technologies until they are fully proven, she told World Maritime News in a recent interview.

Tikka is certainly not alone in her assessment of Shipping industry caution, and many Shipowners are still taking a "wait and see" approach to the more immediate matter of the IMO 2020 global 0.50% sulfur cap that comes into effect in less than 20 months' time.

Genoil COO, Bruce Abbott, recently told Ship & Bunker that the industry was "renowned for its cautious approach to the adoption of new technology," an attitude he says is slowing progress in the application of desulfurization technology in the maritime industry.

Indeed, a report last year found the new sulfur regulations were doing little to accelerate the uptake of scrubbers or alternative bunker fuels either.

Financing the R&D efforts required to achieve IMO's GHG's goals will be a challenge then, Tikka says, adding that there are very few technologies "ready to go" on the scale needed to meet the global targets.

WMN's interview with Kirsi Tikka can be read here: https://worldmaritimenews.com/archives/252808/interview-shippings-decarbonization-will-need-major-rd-investment/