From production to propulsion: Effective shipping regulations should take into account marine fuel emissions throughout their entire life cycle

By Natacha Stamatiou

Innovations were showcased at the Posidonia shipping fair in Greece, but what was striking was the industry’s cautious approach to decarbonisation, particularly the lack of discussions on life cycle analysis of marine fuels. This is crucial as we approach the 82nd session of the Committee for the Protection of the Marine Environment at the International Maritime Organization in September. At this meeting, negotiations on considering the full life cycle of marine fuels will be crucial to developing measures to achieve significant emissions reduction targets and decarbonise the sector.

Introducing a standardised sustainable development framework, similar to the International Civil Aviation Organization (ICAO) approach, will streamline regulations and strengthen the global response to maritime emissions. This approach will encourage investment in cleaner technologies, increase transparency and ensure accountability, thereby achieving real progress towards sustainability.

From production to propulsion: Effective shipping regulations should take into account marine fuel emissions throughout their entire life cycle Share on X

The Well-to-Wake approach

The IMO’s revised strategy to reduce greenhouse gas emissions from ships commits the sector to significant reductions by 2030 and 2040. At its core is the ‘well-to-wake’ approach, which covers the entire lifecycle of fuels, including emissions at every stage of a marine fuel – from extraction to combustion. A well-designed lifecycle emissions framework is essential to move the shipping industry closer to its sustainability goals by focusing on comprehensive emissions tracking and understanding the full environmental impact of each fuel source.

In shipping, combustion emissions receive the most attention. However, significant emissions are generated during the production of marine fuels. For example, while alternative fuels such as liquefied natural gas may have lower carbon dioxide emissions when burned, their overall greenhouse gas footprint can be negated by methane leaks during extraction and distribution. The short-term warming effect of methane is significantly higher than that of CO₂, underscoring the need for a holistic emissions analysis.

As the shipping industry seeks alternative fuel sources, a comprehensive approach is critical to making accurate regulatory and business decisions.

A robust lifecycle approach will help regulators, ship operators and industry to achieve the strategy’s objectives and make informed decisions on fuel selection, ensuring decarbonisation pathways are followed that effectively reduce environmental and social impacts. This is critical as industry explores various alternative fuels, each with different emissions profiles over their lifecycle.

Furthermore, a holistic approach can avoid perverse incentives that could arise from focusing exclusively on ship-level emissions and promote a more precise and effective strategy to reduce greenhouse gas emissions.

Address concerns about double counting in emissions accounting

Due to the extensive scope of emissions tracking, there are concerns about double counting of emissions under the life-cycle approach. These issues are particularly relevant in international contexts where fuels are produced and consumed in different countries. However, transparency and appropriate action by the Parties to the Paris Agreement and the IMO can help to eliminate the risk of double counting and ensure the integrity of emissions reduction strategies.

What happens next?

By considering a full life cycle analysis, we gain a deep understanding of the environmental impacts from fuel production to end use, enabling us to make informed, economically and environmentally responsible fuel decisions.

The Posidonia exhibition highlights the shipping industry’s ongoing transformation towards a more sustainable version of itself. Future discussions must delve deeper into energy transition issues and adapt to evolving regulations and the urgent need to consider the impact of fuels comprehensively. The ‘well-to-wake’ approach, supported by international standards and collaboration, will improve the industry’s ability to manage its environmental impacts and promote sustainability.