Europe has already spent half a billion US dollars on natural gas infrastructure for its shipping sector in order to comply with an EU law – and continuing its roll-out is likely to cost governments and investors $22 billion by 2050, a new study has found. Liquified natural gas (LNG) will reduce shipping emissions by just 6%, at most, compared to the replaced diesel fuel, the research by the UMAS consultancy shows.
In light of the recently adopted initial IMO strategy on reduction of GHG emissions and the Paris agreement, there is a need to better understand the potential market for LNG as a marine fuel, bunkering infrastructure investments required and associated risks in the context of shipping GHG reduction. This report attempts to assess the prospective future public and private financial investments by EU member states into LNG port/bunkering infrastructure consistent with EU plans to foster the widespread uptake of LNG as a means of decarbonising the shipping sector up to 2050. EU member states are mandated to set up LNG port infrastructure under the 2014 Alternative Fuels Infrastructure Directive.
Rolling out liquified natural gas (LNG) infrastructure for shipping in Europe would cost $22 billion and deliver, at best, a 6% reduction in ship greenhouse gas emissions by 2050 compared to the replaced diesel, a new independent study for Transport & Environment (T&E) by the UMAS consultancy finds. To date Europe has spent half a billion US dollars on LNG infrastructure for refuelling ships.
A levy on nitrogen oxides (NOx) emissions with revenues earmarked to fund the uptake of NOx abatement measures is the most promising tool to reduce these ship emissions by up to 70%, a new study by environmental consultancy IVL and CE Delft reveals. The study, commissioned by Transport & Environment (T&E), identifies for the first time the policy options available at the EU level to regulate ship NOx emissions in the EU seas and compares them with the measures to be taken under the International Maritime Organisation (IMO). In addition to a NOx levy with a fund, the study identified two other EU-level policy tools: mandatory slow steaming of ships (with a levy and fund as an alternative compliance option) and a stand-alone levy on emitted NOx.
In March 2016, the states surrounding the Baltic Sea, North Sea and the English Channel agreed to apply for the designation of these seas as NOx Emission Control Areas (NECAs) under the International Maritime Organisation (IMO). An 80% reduction of NOx emissions reduction will be required from new ships only when sailing in NECAs. Other EU seas are not affected.
Increasing the use of natural gas in cars and trucks would be largely ineffective in reducing greenhouse gas (GHG) emissions and air pollution, a new independent study finds. There are no GHG savings in shifting from diesel cars and trucks to compressed or liquefied natural gas (LNG) cars and trucks, while petrol-hybrid, electric and hydrogen cars deliver much greater climate benefits, the study for sustainable transport group Transport & Environment says.
In February 2016, the European Commission released a proposal to guarantee its gas supply security and is preparing another one to implement the EU’s 2030 climate targets for the transport, buildings and agriculture sectors. It is also developing a communication to decarbonise the road transport sector, to be announced this summer. To understand what role natural gas could have in achieving these objectives, T&E commissioned a study from Ricardo Energy & Environment to assess the impacts of large-scale use of natural gas in the transport sector.