Since the IMO declared its goal in 2023 of achieving Net-Zero greenhouse gas emissions in the shipping industry by 2050, the global shipping industry has been paying close attention to the upcoming MEPC 83^rd session scheduled for this April. The mid-term measures expected to be approved at this meeting will significantly impact the global shipping industry. Ongoing intersessional working group discussions are addressing sharp divisions among member states regarding these measures. In particular, there has been intense debate over establishing standards for the Goal-based Fuel Standard (GFS) as a technical measure and whether to introduce carbon taxes as an economic measure.

This winter issue delves into the definition of the Goal-based Fuel Standard (GFS) - a cornerstone of achieving the IMO’s 2050 net-zero emissions target -and provides scenario-based projections of the regulatory levels anticipated by 2050. Establishing GFS regulations requires a sustainable, practical, and balanced approach, grounded in a thorough understanding of the industry’s dynamics and their profound impact.

Achieving decarbonization goals necessitates a transition to zero-carbon or carbon-neutral fuels such as biofuels, methanol, and ammonia. However, these alternatives are significantly more expensive than conventional fossil fuels, prompting shipping companies to explore every possible energy-saving device to reduce fuel consumption. Among these, wind-assisted propulsion systems stand out as particularly effective for ships operating on routes with favorable environmental conditions. By directly harnessing wind power, these systems achieve high efficiency and may qualify for separate incentives under FuelEU Maritime. Despite their benefits, wind-assisted propulsion systems involve high costs, and their efficiency varies depending on the ship and route. Consequently, shipping companies must carefully evaluate their cost-effectiveness before making installation decisions. This issue highlights KR’s method for predicting actual fuel savings when installing wind-assisted propulsion systems for specific routes and vessels.

We are also excited to feature an exclusive interview with Mr. LEE Won, Team Leader at Hyundai Glovis, a leading company advancing decarbonization policies. He discusses the company’s roadmap for decarbonization, adoption of energy-saving technologies, compliance strategies for IMO and EU greenhouse gas regulations, and plans to transition to alternative fuel-powered vessels. In addressing the specific needs of its PCTC (Pure Car and Truck Carrier) shippers, Hyundai Glovis is strengthening its ESG management practices and implementing robust safety measures to address Scope 3 emissions reduction goals and mitigate risks associated with electric vehicle fires. This interview offers valuable insights for shipping companies seeking to develop effective decarbonization strategies.

KR has been conducting extensive research into fire risks aboard PCTCs, and this issue highlights KR’s report on the safe maritime transport of electric vehicles. The issue also covers KR’s recent signing of MOUs with domestic shipyards, shipping companies, and flag states to establish ammonia bunkering safety standards, as well as its participation in NEMO (Nuclear Energy Maritime Organization), an international private organization dedicated to the application of nuclear energy in the maritime sector. Additionally, KR is actively involved in developing IMO safety regulations for ammonia and hydrogen, and revising the Carbon Intensity Indicator (CII). Updates on these initiatives will continue to be featured in future editions of this magazine.

At the end of 2024, KR hosted a green conference titled “Time for Action Towards Green Shipping”. The conference featured diverse presentations, including KR’s decarbonization support services, shipping companies’ decarbonization strategies, and technological advancements by shipyards. It served as a platform for participants to share the understanding that the shipping industry can no longer afford to hesitate but must actively pursue and implement decarbonization strategies. There is no such thing as the perfect moment to start-now is the time to set sail. KR is fully committed to supporting these efforts and will remain a reliable partner throughout our customers’ green journey.