Mr. Darshan Ghodawat, CEO and Managing Director, AVA Global Logistics LLP
- What are the most significant challenges facing the shipping industry in reducing its carbon footprint, and how can they be addressed in the context of increasing global trade and demand for shipping services?
One of the most significant challenges facing the shipping industry in reducing its carbon
footprint is managing the various pollutants and waste generated on board ships. The
marine ecosystem is threatened by both solid and liquid waste, such as ballast water,
grey water, food waste, dunnage and packing material, paper products, and cleaning
materials. We need to address these challenges with a multifaceted approach that
combines technological innovation with operational efficiency. To reduce carbon
emissions, the industry must decrease reliance on non-renewable energy and increase
the use of renewable energy sources. The use of new low-carbon ships and developing
green ports are essential steps, as are updating the loading, unloading, and handling
equipment to more efficient alternatives. Additionally, reducing the operational speed
of ships can significantly improve energy efficiency, leading to lower fuel consumption
and reduced CO2 and greenhouse gas emissions. By adopting these strategies, the
shipping industry can make significant strides in reducing its environmental impact while
continuing to meet the demands of global trade. This holistic approach is essential for
balancing economic growth with environmental responsibility.
2. How can shipping companies balance the need for efficiency and cost savings with the need to reduce emissions and go carbon-neutral, while also maintaining
competitiveness in a highly competitive industry?
Shipping companies can effectively balance the need for efficiency and cost savings with
the imperative to reduce emissions and move towards carbon neutrality by adopting a
strategic and multifaceted approach. One key strategy is investing in green technologies,
such as energy-efficient engines and alternative fuels, which not only reduce emissions
but also enhance long-term cost efficiency. Additionally, optimising operations by
carefully planning routes and adjusting speeds can save fuel and improve loading
efficiency, contributing to both environmental and economic goals. Modernising ship
designs with energy-saving features further supports these efforts by making vessels
more efficient in their fuel use. Companies can also explore renewable energy sources,
like wind or solar power, to supplement traditional fuels, thereby reducing overall
carbon emissions. Improving port efficiency through streamlined operations and the use
of shore power while ships are docked is another crucial step. Finally, investing in carbon
offsets, such as purchasing carbon credits or supporting environmental projects, allows
companies to mitigate their emissions while maintaining competitiveness in the
industry. I think by integrating these strategies, shipping companies can achieve a
balance between operational efficiency, cost savings, and environmental responsibility,
ensuring they remain competitive in a highly demanding market.
3. What alternative fuels and technologies are being explored in the shipping industry to reduce dependence on fossil fuels, such as hydrogen fuel cells, battery-electric propulsion, and wind-assisted propulsion?
The shipping industry is exploring a variety of alternative fuels and technologies to
reduce its reliance on fossil fuels and move toward more sustainable practices.
Hydrogen fuel cells, which generate electricity to power electric motors with water as
the only byproduct, offer the potential for zero emissions when produced from
renewable sources. Battery-electric propulsion systems, designed for short-sea and
harbour vessels, provide zero emissions by storing energy from renewable sources,
although they require advancements in battery technology for longer voyages. Wind-
assisted propulsion technologies, such as wing sails and Flettner rotors, harness wind
power to improve fuel efficiency and reduce emissions. Liquefied natural gas (LNG)
serves as a cleaner-burning fossil fuel alternative, reducing CO₂, sulphur oxides (SOx),
and nitrogen oxides (NOx) emissions, while biofuels, derived from organic materials, can
replace conventional marine fuels and lower CO₂ emissions when produced sustainably.
Ammonia and methanol, both potential zero-emission fuels when produced from
renewable sources, are also being explored, with ammonia presenting challenges in
storage due to its toxicity, and methanol offering a cleaner burn with modifications to
existing engines. Additionally, emerging technologies like hydrokinetic and wave energy
aim to harness power from ocean currents and waves to supplement onboard energy
needs. Together, these alternatives are part of the industry’s broader effort to adopt
more sustainable and lower-emission practices.
4. How can the shipping industry work with policymakers and regulators to develop and implement effective emissions reduction policies, such as carbon pricing and subsidies for low-carbon technologies?
The shipping industry has been engaging with policymakers and regulators to develop
and implement emissions reduction policies. This is being done by actively engaging in
dialogue and participating in policy discussions and consultations. By providing valuable
industry insights, the industry can help shape practical and achievable regulations.
Collaboration on research and development is also crucial, as partnering with
governments and research institutions can advance the development of low-carbon
technologies and alternative fuels, ensuring that policies support innovation and
practical solutions. Supporting carbon pricing mechanisms that reflect the
environmental cost of emissions is important, as long as they are fair and balanced to
avoid placing undue financial strain on the industry. Promoting subsidies, tax breaks, and
grants for adopting green technologies can accelerate the transition to low-carbon
practices and reduce financial barriers for companies. Sharing detailed data on
emissions, fuel use, and technology performance helps informed policymaking and
demonstrating the effectiveness of various measures. Additionally, experimenting
through pilot projects to test and showcase new technologies and practices can provide
real-world examples of their benefits and feasibility, guiding policy decisions. I feel that
the shipping industry can play a significant role in developing and implementing
effective and balanced emissions reduction policies through these steps.
