World - Shipping Industry Tycoons Call For Quick Actions To Decarbonise Marine Transportation
In a joint statement released at COP 28, the CEOs of the largest international shipping companies urged the International Marine Organization (IMO) to quicken the decarbonisation of the marine transportation industry.
The CEOs are advocating for regulatory requirements and a deadline for new construction projects solely using fossil fuels to accelerate the transition to sustainable energy sources. These companies include MSC, Maersk, CMA CGM, and Hapag-Lloyd.
The declaration underlines how critical it is to reach the IMO’s greenhouse gas (GHG) commitments by 2030, 2040, and 2050 while maintaining net-zero global temperatures. The CEOs contend that a rapid and significant switch from fossil fuels to green fuels is the only feasible course of action for an industry that accounts for 2-3% of global greenhouse gas emissions.
The CEOs suggest the following four regulatory pillars:
End Date for Fossil-Only Vessels: The CEOs are urging the suspension of new construction for vessels solely using fossil fuels and requesting an exact deadline for a GHG intensity requirement. This will help to increase investment confidence in both new ships and the infrastructure required for fuel delivery.
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The mechanism for pricing GHG: The CEOs advocate for a price scheme that spreads the premium for green fuels over fossil fuels utilised, making green fuels competitive during the transition period. They highlight the need for low initial volumes of green fuels to have minimum inflationary effects. They propose allocating mechanism-generated revenue to investments in underdeveloped nations and expenditures for research and development.
Vessel Pooling for GHG Compliance: The CEOs recommend that the performance of a group of vessels should be considered instead of the version of individual ships when proposing a vessel pooling option for GHG regulatory compliance. Focusing investments where they may have the most significant impact on reducing greenhouse gas emissions will hasten the decarbonisation of the whole global fleet.
The CEOs recommend a Well-to-Wake or lifecycle GHG regulation foundation to lower the risk of stranded assets and better connect investment decisions with climate interests.
The CEOs claim that they are all convinced that regulations can reduce the dangers connected with extreme weather events and the expenses of the green transition. They hope that industry participation in this cooperative endeavour to address the higher cost of climate change than the switch to green practices will be more widespread.
