Industry players urge governments to enable full shipping decarbonisation by 2050

Industry players urge governments to enable full shipping decarbonisation by 2050
Henriette Hallberg Thygesen, Maersk CEO of fleet and strategic brands

More than 150 industry leaders and organisations representing the entire maritime value chain have called for decisive government action to enable full decarbonisation of international shipping by 2050.

With the private sector taking steps to decarbonise supply chains, the signatories look to governments to deliver the policies that will supercharge the transition and make zero emission shipping the default choice by 2030.

The signatories of the Call to Action for Shipping Decarbonisation urged world leaders to align shipping with the Paris Agreement temperature goal.

Signatories to the Call to Action for Shipping Decarbonisation include some of the world’s largest actors in global trade: A.P. Moller – Maersk, BP, Hapag-Lloyd, Mitsui O.S.K Lines, MSC and Ocean Network Express (ONE).

Henriette Hallberg Thygesen, CEO of fleet and strategic brands at A.P. Moller – Maersk, said: “For the world to decarbonise, shipping must decarbonise. Our customers are looking to us to decarbonise their supply chain emissions.

“We are investing significantly in the carbon neutral emissions technologies that are readily available. To make such investments the default choice across our industry, we need a market-based measure to close the competitiveness gap between fossil and zero emission fuels of today and the carbon neutral fuels of tomorrow.”

The Panama Canal Authority and Port of Rotterdam are also signatories, as well as BP, Daewoo Shipbuilding & Marine Engineering, Olympic Shipping and Management, ENGIE, Citi, Volvo, Shell and more.

Ships transport around 80% of global trade and account for about 3% of global greenhouse gas (GHG) emissions.

In 2018, the UN’s International Maritime Organisation (IMO) adopted an initial GHG strategy that aims to reduce international shipping’s total annual GHG emissions by at least 50% of 2008 levels by 2050 – the strategy is set to be revised in 2023.

In conjunction with the UN General Assembly and ahead of critical climate negotiations at COP26 in Glasgow this November, they call on governments to work together with industry to deliver the policies and investments needed to reach critical tipping points in decarbonising supply chains.

Jeremy Weir, executive chairman and CEO of Trafigura, said: “Decarbonising shipping is both critical to achieving net zero global emissions and increasingly urgent.

“Policy makers have a historic opportunity to accelerate this process by introducing a global carbon levy on marine fuels, to drive decarbonisation and incentivise investment in zero emissions fuels and vessels. The time for action is now.”

The private sector has already invested in RD&D and pilot projects, ordering and building vessels operated carbon neutrally and buying zero emission shipping services.

It has also invested in the production of net-zero emission fuels, in port and bunkering infrastructure and assessing and disclosing the climate alignment of shipping related activities.

The signatories call on world leaders to commit to decarbonising international shipping by 2050, support industrial scale zero emission shipping projects through national action and to deliver policy measures that will make zero emission shipping the default choice by 2030.

To achieve these goals, they ask world leaders to deliver a clear and equitable implementation plan to achieve decarbonisation when adopting the IMO GHG Strategy in 2023.

Additionally, they ask them to set clear decarbonisation targets and provide incentives to support first movers and the broader deployment of zero emissions fuels and vessels.

They also want ‘meaningful market-based measures’ taking effect by 2025 that can support the commercial deployment of zero emission vessels and fuels in international shipping,  making zero emission shipping the default choice by 2030.

Jane Fraser, CEO of Citi, said: “Now is the time to raise our ambitions and align shipping worldwide – a significant carrier of global trade – with the goals of the Paris Agreement.

“We are working closely with our clients to advance the shipping industry’s transition to net zero emissions and, with the support of strong public policy measures, we can accelerate our collective efforts to decarbonise the global economy.”

Johannah Christensen, CEO of the Global Maritime Forum, added: “Decarbonising shipping should leave no country behind.

“To make the transition to zero emission shipping and fuels equitable and inclusive, policy measures must make sure that decarbonising shipping also brings jobs and opportunities to people in developing counties and emerging economies.”