The IMO’s target of a 50% reduction in total greenhouse gas emissions compared with 2008 levels by 2050 is set to cost at least USD 1 trillion in the 20 years from 2030, according to a new study by the energy consultancies, University Maritime Advisory Services and Energy Transitions Commission, undertaken on behalf of the Getting to Zero Coalition.
The research has indicated that an average of USD 50 to 70 billion will be needed annually over the 20-year period. If shipping were to decarbonise completely by mid-century, an additional USD 400 billion would be required between 2030 and 2050, taking the total of USD 1.4 to 1.9 trillion, the analysts said.
By far the largest share of the total investment will be required in land-based infrastructure and production facilities for low-carbon fuels, according to the research, making up about 87% of the total. The remaining 13% will be needed for ships themselves, according to the research, including propulsion and other machinery, shipboard storage capacity for new low-carbon fuels, and a significant retrofit programme for existing ships.