In an exclusive interview to SAFETY4SEA, Mr. Claus Winter Graugaard, Head of Onboard Vessel Solutions at the Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping, warns that this decade is critical to make substantial progress if we plan to decarbonize global shipping by 2050.
Although shipping decarbonization is a feasible scenario, is not an easy one, Mr Graugaard notes, adding that all stakeholders need to step up and take action today for this to happen. ‘’We should applause and support the brave first movers taking real action and driving the leadership by example.’’ he concludes.
SAFETY4SEA: What are the key industry’s challenges up to 2030 from your perspective?
Claus W. Graugaard: The latest IPCC report confirmed our fears – we have very little time to act. We need to start developing the solutions and work on HOW we future proof shipping. Key challenges include mobilizing a very decentralized and truly global, hard-to-abate industry and a dependency on technical solutions that doesn’t yet exist in the scale we need them.
S4S: Which are the key barriers towards a greener shipping and how could the industry to overcome them?
C.G.: We are witnessing a chicken and egg situation where the supply chain for future fuels is not being created because there is lack of faith in the uptake. Meanwhile the industry is hesitant to make the swop to green fuels because of lack of faith in the supply chain. There is a need for regulatory action to unlock this situation and fast forward the development of the needed future solutions.
S4S: What should be the key priorities for the shipping industry with regards to decarbonization and how does your organization aim to assist towards that end?
C.G.: A key priority is for everybody to start doing something now. We are changing and entire business system and we need to see substantial change in place already by 2030 to decarbonize global shipping by 2050. Collaboration is essential and in the Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping we are uniting players across the eco system to mature a portfolio of R&D projects to develop the new, sustainable solutions for shipping. We have also entered in several strategic partnerships that unite private and public efforts to build a greener maritime industry. An example is the Mission Innovation Zero Emission Shipping Mission has defined a clear target of 5% alternative fuels and 200 deep-sea ships primarily running on alternative fuels by 2030.
S4S: What is your advice to ship operators to enhance their energy efficiency?
C.G.: Even if it is still unclear what will be the permanent solutions there are plenty of opportunities to reduce emissions in the meantime through energy efficiency measures and incremental changes. Several proven technologies and relatively easy and cost-effective solutions exist for retrofitting of existing vessels. Not only hardware upgrades but also digitalization and voyage optimization of vessel operation are very relevant future solutions and there is significant potential in enhancing the energy efficiency of the world fleet. Owners, Operators, Charters, Ports & Terminals need to work together to unlock this important and large potential for emission reduction. Regulation to force EE improvement of existing as well as new vessels should likewise set the bar increasing high to drive the world fleet optimization ambitiously in the next decade.
S4S: How could industry stakeholders be motivated to leave their mark on zero carbon shipping? What are your suggestions/ recommendations?
C.G.: We are seeing key industry players acting as first movers on the needed transformation of the value chain already with the initial announcements of zero-carbon vessels and calls for action on market-based measures. This is an example of the change leadership and responsibility taken by the industry – there is a growing sense of urgency and desire to contribute to the fight against climate changes. But it is not cheap, and the cost of the transition needs to be handled through global regulation that ensures fairness for all. We are also seeing decarbonization developing into a competitive edge as customers start demanding guarantees of green shipment of their goods. In return, a growing willingness to pay could contribute to accelerate the green transition of the sector.
S4S: If you could change one thing across the industry from your perspective, what this would be and why?
C.G.: The challenge here is that there is no silver bullet. Not one factor that will make the difference by itself. Decarbonizing shipping is possible, but it will require close collaboration across industries but also across public and private players to address the full complexity. Clarity and un-biased trust in the future pathways of decarbonization of the maritime sector will be very important to create common ground and accelerate implementation. At the Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping we see ourselves as drivers and accelerators of the change because we unite industry, academia and regulators around maturing these pathways.
S4S: Do you have any new plans/ projects/ initiatives to further support decarbonization that you would like to share?
C.G.: We have a growing portfolio of projects and are increasingly engaged in global initiatives on the decarbonization agenda. Our partners are actively contributing to this work by providing human resources that are allocated to center activities and we see a huge potential on combining our strength across the entire shipping value chain like this. We ae also firming up our first transition strategy that will be launched this fall with our take on the challenge we face and suggestions for actions.
S4S: What is your key message to industry stakeholders with respect to a more sustainable future?
C.G.: Our message is that it is possible to decarbonize shipping. It will not be easy, but we have an opportunity to act responsibly and show that shipping once again is capable of reinventing itself to match the changes in society. Another key message is that we can’t wait for others to bring the solution – everyone in the shipping ecosystem must step up and take action for this to happen. We should applause and support the brave first movers taking real action and driving the leadership by example.
The views presented hereabove are only those of the author and do not necessarily those of SAFETY4SEA and are for information sharing and discussion purposes only.
