Low-carbon fuel initiative adopted by ministers at global energy summit

The Clean Energy Ministerial (CEM) has adopted the Clean Energy

Marine Hubs Initiative (CEM-Hubs) at a summit in Goa, India.

The first-of-its-kind platform brings together the private sector and

governments across the energy-maritime value chain to transform maritime

transportation and production hubs for future low-carbon fuels.

The CEM-Hubs initiative is initially backed by Canada, Norway, Panama,

Uruguay and the United Arab Emirates (UAE) in partnership with the International

Chamber of Shipping (ICS), and the International Association of Ports &

Harbors (IAPH).

The CEM Hubs initiative is a partnership that’s jointly led by private

sector and governments working in close collaboration.

The energy maritime value chain is far from ready to transport the influx

of low-carbon fuels that are expected between now and 2050.

To accommodate demand, the shipping industry is expected to transport at

least 50 per cent of all traded low carbon fuels by 2050, according to the

International Renewable Energy Agency (IRENA).

But the production centres, vessels and port infrastructure required to

accommodate expected demand do not currently exist at commercial scale.

So far only one ship in the whole global fleet has been piloted to

transport liquefied hydrogen – travelling from Australia to Japan.

For hydrogen derivates such as ammonia and other low-carbon fuels moved by

ships, the scale is far from what heavy industries, transport, and other sectors

would require.

To support the global transition to net-zero targets, shipping is expected

to transport between two and up to five times the low-carbon fuels it will

consume by 2050.

The mix of fuels that shipping moves will also need to change to be aligned

to the Paris Agreement.

Participants have convened in Goa for the first ever CEM-Hub meeting. The

initiative was adopted less than a year after it was first presented, in an

unprecedented move by the CEM that reflects the immense scale of the problem and

urgency to establish solutions. The CEM-Hubs initiative and progress will be

featured at the next COP28 in Dubai.

The initiative is also supported by the IRENA and the Global Centre for

Maritime Decarbonisation (GCMD).

Jean-François Gagné, Head of Secretariat, Clean Energy Ministerial, said:

“Ports, shipping, and the logistics network need to be an integral part of the

global clean energy transition.

“The Clean Energy Marine Hubs Initiative is a truly public-private platform

between energy, maritime, shipping and finance communities.

“It represents a unique opportunity to develop concrete implementable

actions to ensure greener supply chains globally.”

Earlier this month, the GCMD and Nippon Yusen Kabushiki Kaisha (NYK) have

announced the signing of a five-year strategic partnership agreement.