The American Bureau of Shipping (ABS) is urging shipowners to take gradual progressive steps towards low-carbon operations until a breakthrough in technology and alternative fuels becomes established.
The Houston-based classification society said shipowners need to respond to the decarbonisation drive, because it will play a key role in shaping the shipping business in the future, as well as influence how environmental and financial performances are assessed.
But in its recent Setting the Course to Low Carbon Shipping report, ABS warned that the pathways to achieve the International Maritime Organization's 2050 decarbonisation goals are not yet clear enough.
The outfit advised that shipowners need to look toward a “staged transition”.
ABS said a focus on retrofitting existing vessels and fuel substitution “can offer valuable time for more aggressive deployment of decarbonisation technologies while allowing supply chains to become commercially available”.
“At the same time, this can help to avoid early vessel retirement and asset depreciation, while also avoiding some technology selection risks,” the outfit said.
ABS chief executive Christopher Wiernicki said shipowners should go through a “cycle of continuous process improvement” towards decarbonisation.
He said: “They can do this by understanding the impact of decarbonisation on all aspects of their business and using that information to power the cycle.”
Many shipowners will start cutting carbon by upgrading vessels to meet the requirements of the Energy Efficiency Existing Ship Index and Carbon Intensity Indicator regulations which will enter into force in 2023.
ABS said a “large fraction” of the bulker and tanker fleet will have to make adaptations to meet the regulations. It also pointed out that some steam-turbine LNG carriers will face challenges in complying.
The classification society said decarbonisation is the key to gain a competitive advantage in the market and if shipowners make an additional effort it will pay off.
“Any plan must be designed to go beyond compliance and form the cornerstone of a company’s business strategy,” ABS said.
