Nordic Shipping Roadmap Urges Govs to Close Fuel Transition Cost Gaps
The Nordic Roadmap project has unveiled the Fuel Transition Roadmap for Nordic Shipping, a comprehensive document outlining a decarbonization strategy for the region, which urges the Nordic ministers to close the cost gap associated with the fuel transition.
The roadmap has been developed by the project team led by DNV with members from MAN Energy Solutions, IVL Swedish Environmental Research Institute, Chalmers University of Technology, Menon Economics, and Litehauz, and in collaboration with more than 60 industry partners.
To decarbonize, shipping will need to switch to zero-emission fuels and the roadmap strategy identifies three main barriers to their uptake in the region:
- Demand and costs – linked to the lack of demand for zero-emission shipping and cost-competitiveness of zero-emission fuels.
- Fuel availability – referring to the lack of onshore development of the supply chain, including fuel production and sourcing of raw materials, distribution, and bunkering infrastructure.
- Technology and safety – referring to the low maturity level of fuel technologies and safety regulations, both onshore and onboard vessels.
The report goes on to outline seven building blocks, broken down further into 20 specific actions to be taken towards 2030, to overcome the interlinked barriers. These represent specific work packages that governments and industry stakeholders must collaborate and work on in parallel to upscale the use of zero-emission fuels.
The key recommendations of the roadmap highlight the urgent need for government action to bridge the cost gap for zero-emission fuels and to accelerate the implementation of competitive tenders for green shipping corridors.
The strategy envisions the first corridor becoming operational by 2025, followed by three more by 2026, and an additional six by the end of 2028. An immediate priority is to develop a plan for the regional integration of fuel production and infrastructure.
“We call on Nordic governments to act swiftly on the urgent measures identified in the Fuel Transition Roadmap for Nordic Shipping. Doing so will give the industry confidence to invest in ships capable of running on zero-emission fuels, and the fuel infrastructure needed to support them.
“Cross border and value chain collaboration will be crucial in enabling the industry to overcome key barriers and to meet the ambitious decarbonization targets. By leading the way, the Nordics can not only drive value creation and boost exports but can also play a key role in the global fuel transition,” said Knut Ørbeck-Nilssen, CEO Maritime, DNV.
The findings and recommendations of the roadmap were officially presented to Nordic ministers at a High-Level Conference on Green Shipping in the Nordic Region, held in Copenhagen.
Alongside their commitment to global maritime emission reduction targets set by the IMO, the Nordic countries have also pledged to meet ambitious regional climate targets for shipping.
These include early commitments to net-zero emissions by 2050, advancing a sustainable ocean economy and green transition, cooperation on transport, infrastructure and energy supply, and the establishment of green shipping corridors.
The Nordic Roadmap project started in 2022 and is funded by the Nordic Council of Ministers. It aims to reduce key barriers to the uptake of zero-emission fuels and develop a common roadmap for the whole Nordic region towards zero-emission shipping.