What’s new with zero-carbon shipping and the climate crisis

Come sail away  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ 

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Ship shape The news • Bracing for the 2050 challenge. The shipping industry must halve their vessels’ carbon-dioxide emissions by 2050, in accordance with standards set by the International Maritime Organization. But cleaner fuel options, such as methanol and ammonia, are turning out to be scarce and expensive. One container-ship operator has resorted to using liquefied natural gas due to a lack of alternatives. [WSJ] • Cargo-ship electrification. A new start-up is advocating using electricity to help the shipping industry meet its sustainability goals. The company is experimenting with building electric batteries in standard shipping containers, which can also be modified for use by smaller ships. When ships reach the port, the drained batteries get replaced with a new pack for cost-effective refueling. [CNBC] Every year, the global shipping sector consumes 300 million tons of fuel, releasing around 3% of the world’s carbon-dioxide emissions into the atmosphere. Our insights • Why it matters. Marine shipping, just like other segments within the global transportation industry, has an important role to play in fighting the climate crisis. To transition to zero-carbon shipping, companies will need to develop the energy and technical resources to supply over 70,000 vessels with cleaner-burning fuels. Implementing new types of fuels will also require new technical capabilities. • Leading the way. Leaders in the shipping industry need to understand the risks and implications of transitioning and then shape an overall narrative of how the sector is going to get to zero carbon. For more on how shipping companies can kick-start their own journey to a zero-carbon future, read our interview with Bo Cerup-Simonsen, CEO of the Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping. — Edited by Arshiya Khullar    Stay afloat Was this forwarded to you? Sign up here. Or send us feedback — we’d love to hear from you. Follow our thinking This email contains information about McKinsey’s research, insights, services, or events. By opening our emails or clicking on links, you agree to our use of cookies and web tracking technology. For more information on how we use and protect your information, please review our privacy policy. You received this email because you subscribed to the On Point newsletter. Manage subscriptions | Unsubscribe Copyright © 2021 | McKinsey & Company, 3 World Trade Center, 175 Greenwich Street, New York, NY 10007