Net Zero Industry Tracker 2024 Shipping

Readiness Emission intensity trajectory for shipping sector FIGURE 29 Source: Accenture analysis derived from IEA and IMO.2.04.08.010.012.014.0gCO2/tonne miles6.0 BAU Net zero2023 2040 20502050 BAU scenario 7.3 gCO2/ tonne miles 2050 net- zero scenario 0.0 gCO2/ tonne miles12.411 20301.78.7 010.312.4 Overall shipping demand is expected to grow by 37% by 2050 as per the IRENA 1.5 degree scenario.178 Dry bulk, containers, chemicals and gas tankers will account for most of the growth in shipping demand. Increasing international trade, industrialization and urbanization in emerging markets, and growth in global population (leading to rising consumption and infrastructure requirements) are expected to be the main drivers for demand growth.Thus, the industry needs to act quickly on decarbonization to ensure reduction in emission intensity and to offset the increase in demand. The key mitigation pathways are expected to be use of hydrogen-derived alternative fuels in the fuel mix and increasing the energy efficiency. Decarbonization levers and top mitigation methods (IRENA’s NZE Scenario) FIGURE 30 +37% -83% 0.4 0.20.8 0.61.01.2 0Top three mitigation methods 2022 2050 Avoided demand Activity increase Biofuels Energy efficiency Ammonia Expected to reduce emissions by 32% Energy efficiency Expected to reduce emissions by 20% Hydrogen Expected to reduce emissions by 14%H2NH3CO2 emissions, Gt CO2e-17% Methanol Electricity Ammonia Hydrogen Source: Accenture analysis derived from IRENA and IMO. Net-Zero Industry Tracker: 2024 Edition 5