In an exclusive interview to SAFETY4SEA, Mr. Guy Platten, Secretary General of ICS, talks about the CEM-Hubs initiative that aims to ensure the availability of required ships, infrastructure and workforce to decarbonise the industry as we are heading towards a zero-emission future.
As Mr. Platten mentions ‘’climate change is not unique to any one industry, it is impacting all of us’’; in that regard, it is important all governments to provide clarity to accelerate investments in research, development, infrastructure and training.
SAFETY4SEA: Tell us a few words about the Clean Energy Marine Hubs (CEM-Hubs). What is the focus and goals of the Initiative?
G.P.: With 50% of the new zero emission fuels expected to be transported by ship, the CEM Hubs initiative brings together a CEO-led Clean Energy Maritime Taskforce, representing all aspects of the fuels value chain, and ministers of energy across the world to ensure that we deliver the global energy transition. The initiative was first presented at the Clean Energy Ministerial in Pittsburgh in September 2022, with activity kickstarted by the International Chamber of Shipping (ICS) and the International Association of Ports and Harbors. Working with the Clean Energy Ministerial and their member governments, we aim to accelerate the deployment of infrastructure, and to de-risk the investment needed to ensure that the world can have access to low-carbon fuels close to the ports for the maritime sector to transport and use. The Taskforce is made up of private sector members from across the energy-maritime value chain including ports, shipping, finance and energy sectors.
S4S: What are some of the key actions the CEM-Hubs Initiative is taking to address the critical issue of climate change?
G.P.: The key actions the CEM-Hubs initiative is taking include ensuring we have the ships, the infrastructure and the workforce we need for the whole world to decarbonise. The initiative is bringing together decision makers from the public and private sector, the people who have the power to make real, tangible difference. It is also bringing together all parts of the value chain. We all have our own goals when it comes to decarbonising and we all have a part to play reducing carbon emissions, but we must stop thinking in silos and come together. Climate change is not unique to any one industry, it is impacting all of us.
S4S: What are the top priorities in the International Chamber of Shipping’s agenda for the next five years?
G.P.: Decarbonisation of shipping and shipping’s role transporting new green fuels are of course among our top priorities. Equally as important is making sure the shipping industry’s seafarers are trained to use and transport these fuels of the future. Before we can address these priorities, governments need to give clear signals on their ambitions. The conversations regarding the revision of the IMO strategy will be key amongst these signals. Once we have this clarity from governments, we will see more investments being made to help further our work on decarbonisation. Shipping is already taking steps to prepare the workforce for the future. A review of the STCW is taking place to make sure it remains fit for purpose, and the Maritime Just Transition Taskforce, has been established to support seafarers and their communities through the energy transition whilst driving forward maritime decarbonisation, to ensure that no one is left behind.
S4S: What are the key actions that will make a step change in industry’s performance across a zero-emission future?
G.P.: An internationally accepted Global Economic Measure (GEM) is one proposal put forward by ICS and it is key to accelerating the uptake and deployment of zero-carbon fuels. ICS’s ‘fund and reward’ system aims to catalyse the adoption of alternative fuels, which currently cost at least two or three times more than conventional marine fuel. This system will benefit both developed and developing countries by narrowing the price gap of these fuels and could be up and running as early as 2024 if IMO member states give the green light. Getting something in place as soon as possible will reduce the investment risk, which is crucial to making tangible change. We cannot make investments just based on political statements.
S4S: Are you satisfied with progress made towards maritime decarbonization so far? What would you like to see up to 2030?
G.P.: In November 2022, new research commissioned by the ICS from the Tyndall Centre for Climate Change Research at the University of Manchester highlighted an urgent global need for investment in green fuels this decade to meet the Paris Climate goals. The report exposed the gap between announced government led projects and what is required – currently only 4% of current commitments are actually being funded. Governments need to send strong market signals to the shipping industry. Currently, the lack of clarity from governments is creating a fear of wasted investments. If governments don’t address these concerns to accelerate investments, we will remain in a stalemate position, this is not good for our industry, not good for governments and not good for the planet. We also need to make sure we move forward with training seafarers for the future. We are taking the recommendations in the 10-point action plan launched by the Maritime Just Transition Task Force to governments, so that they can incorporate the thinking into their own industrial planning.
S4S: What is your wish list for the industry and/or regulators and all parties involved for the shipping industry following COP27 discussions?
G.P.: Back in November 2021, at COP26 in Glasgow, the shipping industry made it clear that it is supportive of clear and well thought through regulations, as regulations provide the reassurance the industry needs to move forward. The Tyndall Centre’s research identified potential considerations for government policies, to give shippers, consumers and low-carbon hydrogen producers the confidence they need to invest. We hope to see these taken into consideration. Stakeholders across the world’s energy landscape are increasingly realising that we need to work together to decarbonise; this was reflected in the announcement made during the Green Shipping Challenge event at COP27 with John Kerry and the Prime Minister of Norway, when announced that more countries had come on board with the CEM-Hubs initiative. We now look forward to the next Clean Energy Ministerial Meeting in July when the initiative gets formally adopted.
S4S: Do you have any projects/ plans that you would like to share with industry stakeholders?
G.P.: In June the ICS and the Filipino Shipowners’ Association will be hosting a summit Shaping the Future of Shipping – The Seafarer 2050. Held in Manila, the summit will bring together government ministers, Regulators, Financiers, NGOs, Shipowners, industry CEOs and technology and infrastructure providers to discuss what will be required from the seafarer in 2050; who they will be, where they will come from, the training they will require and the environment in which they will work. As mentioned we also have big plans for the CEM Hubs initiative this year at the Clean Energy Ministerial in India in July and in December at COP28 the industry will be coming together to showcase real progress. We look forward to bringing the shipping industry and wider value chain together with government ministers to come up with real world solutions to tackle climate change.
S4S: If you could change one thing that would have an either profound or immediate impact on industry’s green performance, what this one thing would it be and why?
G.P.: For a sustainable future, not just for shipping but the entire world, governments around the world need to provide clarity. This will be key to accelerating investments in research, development, infrastructure and training that will help us achieve those vital climate change goals.
The views presented hereabove are only those of the author and do not necessarily reflect those of SAFETY4SEA and are for information sharing and discussion purposes only.
