Riding the ‘hydrogen wave’: A new fuel source for a shipping industry seeking lower emissions
Shipping keeps the world moving; but what moves the ships? As part of the increasing global push to achieve net-zero greenhouse gas emissions by 2050, significant attention has been paid to the energy and power sectors. However, pressure is also mounting to address emissions from various “hard-to-decarbonize” sectors, such as shipping. This pressure comes from a variety of sources. For example, in 2018, the International Maritime Organization (“IMO”) adopted a goal of reducing greenhouse gas (“GHG”) emissions 50% below 2008 levels by 2050. Commensurate with the IMO’s goal, several financial institutions launched the Poseidon Principles, committing to reduce the emissions from their shipping finance portfolios.
Hydrogen as a clean fuel source poses an enticing, and increasingly compelling, option for shipping companies to meet these goals, particularly as multiple countries incorporate hydrogen into their sustainable economy plans. This article discusses how these trends intersect to help shipping companies that are considering riding the “hydrogen wave.”
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This information is provided by Vinson & Elkins LLP for educational and informational purposes only and is not intended, nor should it be construed, as legal advice.