IMarEST sets out NZF solution to unite the industry

Ahead of next week’s meeting of the IMO’s MEPC84, the Institute of Marine Engineering, Science and Technology (IMarEST) has set out proposals to ensure the Net Zero Framework (NZF) is scalable, practical to deliver, and reduces investment risk. The Institute says this is essential if the global shipping industry is to adopt an effective pathway to net zero greenhouse gas emissions by 2050.

Central to the intervention at the IMO is the use of reverse auctions, to ensure NZF subsidies support the deployment of technical solutions most likely to achieve widespread industry uptake and deliver the greatest emissions reductions.

The IMarEST argues that reverse auctions, alongside targeted support for the most promising solutions, would prevent incentives from being spread too thinly and ensure investment is focused on technologies with the greatest potential to deliver cost effective, scalable emissions reductions. Well-designed reverse auctions have already demonstrated their effectiveness in driving innovation in terrestrial renewable energy projects, it says.

The proposal draws on research from University College London, which suggests that around 5% industry adoption is a critical threshold to catalyze sector wide uptake of technology. By directing IMO funding to help solutions reach this level as soon as possible, the IMarEST says the NZF incentive fund can achieve far greater impact by setting a direction for the decarbonization of the industry and lowering the cost of transition for all.

Alasdair Wishart, technical and policy director at the IMarEST, said: “Reverse auctions could unlock the billions of dollars of capital needed to finance new energy production and supply chains. Without clear direction from the IMO on meeting 2050 emissions targets, the industry risks an unworkable fragmentation of national and regional regulations to reduce greenhouse gas emissions.

"Our proposal will help to shape a Net Zero Framework that is robust, practical and capable of delivering real impact, and is vital to the future sustainability of our industry.”

Professor Tristan Smith, an IMarEST delegate to the IMO, said: “Research consistently shows that shipping will need to rapidly shift to renewable energy production and supply chains if it is to play its part in reducing emissions and slowing climate change. We cannot continue to rely on fossil fuels. Only by promoting solutions that deliver environmental, economic and social benefits will we find a way forward.”

To help make its case, the IMarEST will present its reverse auction proposal at a lunchtime session at the IMO on Thursday 23 April at 12:45, to be attended by representatives from IMO member states, industry and technical experts, and IMO observers.