A new report from the UCL Energy Institute has highlighted the looming risk of maritime asset stranding, stating that a rapid energy transition could “lead to ‘premature scrapping’ of over a third
A new report from the UCL Energy Institute has highlighted the looming risk of maritime asset stranding, stating that a rapid energy transition could “lead to ‘premature scrapping’ of over a third of the fleet, valued at over $400 billion, unless they undergo costly retrofits to remain competitive in the wake of new GHG policies and wider energy transition.”
The report reveals that existing vessels and newbuilds on order will produce double the emissions permissible under a 1.5°C-aligned carbon budget, precipitating a slew of supply-side obsolescence and demand-side oversupply risks.
However, wind propulsion provides an alternative pathway, delivering immediate efficiency gains that align with carbon intensity indicator (CII) benchmarks, says BAR Technologies.
This comes amid mounting evidence that progress towards the IMO’s GHG reduction targets is intensely inadequate and doubts continue to linger around the price and availability of lower-carbon fuels. BAR Technologies urges shipping to recognize wind’s immense untapped potential as a self-sufficient, zero-emission and readily available energy source.
Current Alphaliner data shows that among the top 100 largest container lines in operation, 76 lines operate fewer than 50 vessels, and 28 of those operate just 10 ships or fewer. Considering the further dilutive effect of
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