The CEOs of Maersk, CMA CGM, Hapag-Lloyd, MSC, and Wallenius Wilhelmsen have issued a joint declaration at COP 28 calling for an end date for fossil-only powered newbuilds, urging the IMO to create the regulatory conditions to accelerate the transition to green fuels.
ccording to a statement published by Maersk, as frontrunners, the CEOs are convinced that even closer collaboration with IMO regulators will produce the effective and concrete policy measures needed to underpin the investment within maritime shipping and its ancillary industries that will enable decarbonisation to occur at the pace required.
A.P. Moller – Maersk wants to accelerate the green transition in shipping and logistics and a crucial next step is to introduce regulatory conditions which ensure that we create the most greenhouse gas emission reductions per invested dollar.
Being at the forefront of introducing lower greenhouse gas (GHG) emission ships underscores the CEOs’ commitment to the IMO GHG reduction objectives for 2030, 2040, and 2050, the statement says. Their joint declaration also calls for the establishment of four regulatory ‘cornerstones’:
- An end date for new building of fossil fuel-only vessels and a clear GHG Intensity Standard timeline to inspire investment confidence, both for new ships and the fuel supply infrastructure needed to accelerate the energy transition.
- An effective GHG pricing mechanism to make green fuel competitive with black fuel during the transition phase when both are used. This can be done by distributing the premium for the green fuels across all the fossil fuel used. With low initial volumes of green fuels any inflationary effects are minimised. The mechanism must also feature an increasing regulatory incentive to achieve deeper emissions reductions. Furthermore, beyond covering the ‘green balance fee’, revenue generated by the mechanism should go to an RD&D fund and to investments in developing countries to ensure a just transition that leaves no one behind.
- A vessel pooling option for GHG regulatory compliance where the performance of a group of vessels could count instead of only that of individual ships, ensuring investments are made where they achieve the greatest GHG reduction and thereby accelerating decarbonisation across the global fleet.
- A Well-to-Wake or lifecycle GHG regulatory basis to align investment decisions with climate interests and mitigate the risk of stranded assets.
This sets an ambitious milestone for the decarbonization of our industry. By collaborating with others, we each take a new step in our energy transition, while ensuring a collective level playing field and access to greener fuels for the industry.
… commented Rodolphe Saadé, Chairman and Chief Executive Officer of the CMA CGM Group
We believe that a regulatory framework and clear targets are crucial to accelerating the introduction of alternative fuels and reducing our carbon footprint.
… added Rolf Habben Jansen, Chief Executive Officer of Hapag-Lloyd
In a unprecedent action, major players of the shipping industry express their shared conviction that regulation can play a key role in mitigating the cost of the green transition as well as the risk of extreme weather events. Given the cost of climate change is far greater than the cost of the green transition they look forward to being joined by other companies.
Soren Toft, Chief Executive Officer of MSC Mediterranean Shipping Company, stated that MSC has fully supported and committed to net decarbonization by 2050 but without the full support from other stakeholders particularly energy providers it will be extremely difficult to meet those objectives – no one can do this alone.
At Wallenius Wilhelmsen we have decided to be a shaper of the journey to net-zero and focus our investments in supporting this ambition. Our customers want to partner with us on the voyage. Now, we need a global regulatory framework matching this ambition to drive the investments needed at a global scale.
… concluded Lasse Kristoffersen, President and Chief Executive Officer of Wallenius Wilhelmsen