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New Report Highlights Role of LNG in Cleaner Marine Transport


The International Gas Union (IGU) has released a new report on the crucial role of LNG in enabling cleaner marine transport. Unveiled at the G20 Energy Sustainability Working Group, the latest report highlights the detrimental impact of marine transport on air quality levels, emphasizing the positive role LNG can play in combatting these impacts as an alternative and cleaner fuel for shipping.

Urban air pollution has become a top priority for local, national, and international governments in both developed and developing countries. Marine transportation is an often overlooked contributor to negative air quality levels. In Hong Kong, ship traffic is responsible for half of the city’s total toxic pollutants—more so than those produced by the power generation and transportation sectors. In the world’s top 100 ports, roughly 230 million people are exposed directly to the harmful emissions produced by shipping.

These emissions also create significant economic costs, with emissions of PM2.5, SO₂ and NOx produced by shipping in the world’s 50 largest ports costing authorities more than $13 billion annually.

The use of LNG in marine transport can deliver significant environmental, economic and social benefits. These include significant reductions in emissions of harmful pollutants, and a switch to LNG fuel can generate substantial monetary savings for operators through fuel costs, as well as benefiting local infrastructure through investments and jobs.

Armed with the latest supporting data, and various global case studies, the report outlines a number of recommendations for G20 Governments:

  • Increasing regulation of emissionsfrom marine transport
  • Identifying and eliminating gaps in existing regulatory frameworks
  • Facilitatingbetter access to financing for the switch to LNG
  • Funding LNG technology development and first-mover deployments

The recommendations above would tackle existing barriers to the more rapid deployment of LNG-fuled ships, which the report identifies primarily as: a confusing regulatory landscape; gaps in emissions controls; regional inconsistencies; lack of clarity in future policy direction; as well as commercial barriers, such as access to capital and cost uncertainties.

To download the full report, click here.