Many shipping companies and other stakeholders have announced ambitions to deploy zero-GHG ships in the course of this decade. As the total costs of ownership of a ship running on zero-GHG fuel are currently 2-10 times higher than for a vessel burning fuel oil or LNG, it is hard to make a business case for a zero-GHG ship. At the same time, IMO has agreed a short-term measure requiring vessels to improve their carbon intensity, which means shipping companies will often face costs to meet the required Carbon Intensity Indicator (CII).
This study analyses whether the business case for a zero-carbon ship would be improved if the costs of meeting the CII are pooled. It is concluded that about half the additional costs of low- and zero-carbon fuels can be met by pooling compliance without compromising the environmental outcome.