Shipping & Transportation

Transitioning the shipping industry to zero-emission fuels needs to happen as rapidly as possible and will require both financial and strategic support.

The shipping industry plays a critical role in the global economy, carrying approximately 90% of the total tonnage of world’s traded goods. To avert the consequences of climate change, electrification and renewable energy sources present the best path forward. For bulk shipping across the ocean, which is already responsible for 3% of global emissions and poised to grow, zero-emission fuels coupled with energy-saving devices is the best path to decarbonization. As the world’s maritime fleet transitions towards more sustainable fuels, it will become increasingly important to capitalize on the opportunities associated with this transition in the coming years. 

With the development of new cleaner fuels, making transportation greener has never been more viable. Norway has played a key goal in getting the International Maritime Organisation to adopt an ambitious goal of cutting carbon emissions from the global shipping industry by a minimum of 50% by 2050. The country itself, however, is aiming much higher.

The airline industry encompass not just airlines and flights, but also transport. We are now beginning to see the how Covid-19 affects the airline industry in the long-term. Some effects are obvious: hygiene and safety standards will be more stringent, and digitalization will continue to transform the travel experience. 

Some airlines have responded to the pandemic by restructuring for greater efficiency. Airlines need to proactively set the business up for long-term structural value creation. Becoming better necessitate investment, particularly in IT and digitalization. Airlines should reevaluate the economics of their operations as leisure trips seems to be fueling the recovery, and business travel taking longer to recover.  It will take incentives to encourage the aviation industry to become sustainable. Technology has to evolve; countries will need to change legislation, and airlines will need to fund expensive research. Greener air travel will depend on emerging technologies: Electric engines, alternative fuels, and better navigation could all help reduce emissions. As travel needs to become greener and more efficient, the aviation industry are taking steps now to transform this sector. Air travel is here to stay, so the cleaner the better.