Danish Shipping calls for minimum green fuels mandate
The Danish shipowners association says that 5% of the global fleet should mandatorily use “green fuels” by 2030 to help decarbonise the maritime sector.
PHOTO: Maersk has ordered a total of 19 vessels with dual-fuel engines capable of running on green methanol. Maersk
Danish Shipping is joined by the Methanol Institute and the World Shipping Council when it urges policy makers to strengthen the EU's FuelEU Maritime regulation by raising greenhouse gas (GHG) emission reduction targets. This, they argue, will increase uptake of e-fuels and send strong demand signals to boost their production.
In its current form, the FuelEU Maritime proposal requires ships to reduce GHG emissions from their fuels by 75% by 2050, which is not in line with the EU's target of achieving net zero by then, Danish Shipping says.
Higher emission reduction targets will also encourage first movers who choose to use more expensive e-fuels, the industry bodies said in an open letter.
”It must pay off to lead the way. E-fuels are far from available in sufficient quantities and thus, it requires extensive planning to ensure supply when bunkering around the globe. Therefore, a mechanism is needed to incentivise the uptake,” Danish Shipping’s executive director of climate, environment and security Maria Skipper Schwenn says.
She adds that that in the phase-in period, shipowners should be encouraged to use smaller volumes of e-fuels. This will boost demand and production for e-fuels.
Some shipowners are actively working to reduce carbon emissions from their operations by switching to alternative clean fuels like green methanol.
Danish shipping company A.P. Moller – Maersk entered into its eighth green methanol supply deal with US-based project developer Carbon Sink last month. Carbon Sink is slated to start commercial production from its unit in South Dakota, US in 2027.
Maersk currently has orders for 19 vessels that will be capable of running on green methanol when they come into operation between 2023-2025.
By Shilpa Sharma
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