Commenting on shipping’s journey towards decarbonization, Soren Skou, Chief Executive Officer, A.P. Møller-Maersk, said that the 2020s must be the decade of action.
In a piece written for the World Economic Forum, Mr. Skou explained that time is running out for the IMO:
Market-based measures consisting of a greenhouse gas price should be introduced to close the competition gap between new, green fuels and fossil fuels. That way, switching to green fuels will make economic sense for the industry. We support such a CO2 price, and it must be substantial enough to achieve true price parity
Therefore, he adds that if the IMO doesn’t reach agreement on global rules now, the shipping would face an inadequate patchwork of different rules in different regions.
If the IMO can’t deliver, then quotas for greenhouse gases through an Emissions Trading System in the EU might be needed to push the industry on the right track towards decarbonisation. The EU then needs to balance its role as a regional regulator with that of a leading bloc at IMO. A strong voice from the EU at UN level is needed to raise ambitions and secure the adoption of meaningful global regulations
He is hopeful however, by the fact that decarbonization of the shipping industry has moved up on the international political agenda. He based this on the fact that the US is calling on the IMO to step up its ambitions, while shipping is part of the UK’s climate plan, with Singapore investing $90 million in a research centre for decarbonisation.
It is not just from the political scene that we are currently witnessing a changed conversation around the climate challenge and the urgency for action. Consumers are changing buying habits and expect that goods are not only produced but also transported with the climate in mind
On the other hand, Mr. Skou focuses on the challenges of production scale as well as the lack of a mature market. As he explains, the market for new fuels is currently fragmented, as there are many different projects and suppliers.
As for Maersk, the company has announced that it will be moving forward with vessels that can sail on sustainable fuels, “be it sustainable methanol, ammonia or other types of fuels.”
Although the task of decarbonising global shipping is enormous, it is clear when we look to the future that this does not just pose challenges. It also brings along opportunities that businesses, customers and decision makers must seize. As an integrated logistics and transport company, we are ready. We have embarked on a journey to create a change that we believe is both responsible and the right path for our company, our customers and not least for the planet
Mr. Skou concluded.
