The world Bank report published last 15th April has not been unnoticed!
The World Bank prepared an analytic work on the prospects of decarbonising maritime transport. To do so, a representative selection of zero-carbon bunker fuels was assessed to identify the most promising candidate fuels for shipping’s decarbonization currently (biofuels, hydrogen, ammonia, synthetic carbon-based fuels).
Key findings of the report clearly state that green ammonia and hydrogen appear to be the most promising zero-carbon bunker fuel for shipping to date. However, LNG is estimated to play a rather limited role in the transition toward low- and zero-carbon shipping, being mostly used in niche applications. According to the report natural gas could play an important enabling role for zero-carbon bunker fuel production. This would create an inclusive market allowing many countries, including developing countries, to shift from energy importers to energy exporters.
These key findings lead the World Bank to propose implications both to policy makers and the industry. Among others, the World Bank encourages public support through the IMO or national action to accelerate crucial R&D and enable the industry to make confident long-term investments. However, the World Bank advises to avoid any support to LNG as bunker fuel in new public policies. It even suggests reconsidering existing support in order to put shipping on a Paris-aligned GHG emissions trajectory. In addition, the report suggests a strong and urgent regulation of methane emissions and encourage additional research.