Canadian Green Shipping Corridors

Canadian Green Shipping Corridors: A Preliminary Assessment

Introduction The need for accelerated action to combat greenhouse gas emissions from shipping is paramount, given shipping's contribution to the Canadian economy and its direct impact on global climate change. This report, commissioned by Oceans North Conservation Society and conducted by Arup International Projects Limited, explores the potential role of green shipping corridors in Canada's maritime decarbonization efforts.

Key Findings

1. Background and Need for Action

• Economic Impact: Commercial shipping contributes approximately $30 billion annually to Canada's economy.
• Environmental Impact: In 2019, vessels operating in Canadian waters emitted over 13 million tonnes of CO2, representing about 1.7% of Canada's total greenhouse gas emissions.
• Health and Climate Impact: Air pollutants from these vessels affect port and coastal communities' health, pollute oceans, and contribute significantly to climate change.

2. Transition to Zero Emission Alternatives

• Current Challenges: Progress towards efficiency and exhaust treatment technologies only marginally reduces emissions.
• Global Transition Requirement: A shift away from fossil fuels to zero emission alternatives is essential to meet Paris Agreement goals.
• Infrastructure Opportunity: Developing infrastructure for zero emission fuels presents a significant opportunity for economic growth and environmental sustainability.

3. Green Shipping Corridors

• Purpose: Facilitate collaboration among stakeholders to overcome barriers to low and zero emission fuel adoption.
• Implementation: Canadian ports have initiated several green shipping corridor partnerships, guided by Transport Canada's national framework.

4. Marine Fuel Production Pathways

• Low and Zero Emission Fuels: Focus on fuels with zero lifecycle greenhouse gas emissions and those with lower intensity.
• Feedstock Considerations: Different regions face varying challenges and opportunities based on local energy and resources.

5. Stakeholder Mobilization

• Value Chain Engagement: Green corridors encourage cooperation among producers, distributors, and end-users to drive fuel uptake.
• Feasibility Demonstration: Short-to-mid-term demonstrations of fuel usage can catalyze broader adoption.

6. Demand Analysis and Infrastructure Requirements

• Scenario-Based Demand Estimation: Lloyd's Register provided estimates for low and zero emission fuel uptake at three Canadian ports under various scenarios.
• Capital Costs and Infrastructure Needs: Analysis of required infrastructure size, type, and cost to meet demand projections.

7. Total Value Case

• Co-Benefits Exploration: Application of a 'Total Value' approach to highlight financial, social, and economic benefits of effective infrastructure delivery.

Conclusion

The report underscores Canada's potential to leverage green shipping corridors for decarbonization, emphasizing the need for coordinated action, innovative infrastructure solutions, and stakeholder collaboration to realize environmental, economic, and social benefits.