International shipping keeps the global economy afloat, transporting billions of dollars worth of goods every day. However, these operations come at a high environmental cost, as the sector remains one of the biggest contributors to man-made climate change. The commercial shipping sector emits 1 billion tonnes of CO2 per year, accounting for around 3% of global emissions. However, this figure could rise to 10% by 2050 if current processes are not changed. Getting the sector to net zero emissions in line with global sustainability goals will be a huge challenge, especially as international freight demand continues to grow.
Biodiesel and other alternative green fuels have emerged as a potential solution to reduce the sector’s huge carbon footprint, but their widespread adoption is not happening fast enough. Moreover, the EPA’s recent decision on biofuel volume requirements casts uncertainties on the feasibility of a net zero transition in global shipping in the coming years.
As things stand, the main target for decarbonising shipping comes down to the type of fuel used and its associated carbon footprint. Fuels such as heavy fuel oil and marine gas oil are an environmental nightmare, and only by replacing them with cleaner alternatives can the industry take a significant step towards a greener future. Many clean shipping fuels already exist, but a full-scale transition can only happen with a government mandate.
In June 2023, the EPA announced its final rule on blending volumes and standards for several biofuels, including biomass-based diesel, cellulosic biofuel and advanced biofuel. Among these options, biomass diesel has the highest feasibility of adoption in the sector. The problem is that the EPA limited its volume target to 3.04 and 3.35 billion gallons by 2024 and 2025, respectively. This decision on biofuel volume requirements can be seen as a setback for the adoption of green fuels, but it is likely to be only a temporary blip in the grand scheme of things. Given the growing clamour for decarbonisation and eco-conscious practices sweeping the globe, the future of biofuels looks bright.