The CEOs of major shipping companies, including Hapag-Lloyd, A.P. Moller – Maersk, CMA CGM, Wallenius Wilhelmsen and MSC Mediterranean Shipping Company, have advocated for establishing an ‘end-date’ for newbuilds reliant solely on fossil fuels in the maritime sector.
Making the announcement during COP28 in Dubai, the CEOs also urged the International Maritime Organization (IMO) to create a regulatory framework that facilitates a swift transition to green fuels.
Rapid shift to greener fuels
According to the maritime industry, meeting the IMO’s greenhouse gas reduction targets for 2030, 2040, and net-zero by 2050 requires a large-scale and rapid shift from fossil fuels to green alternatives.
The CEOs also called for the implementation of an effective greenhouse gas pricing mechanism to ensure the competitiveness of green fuels against fossil fuels during the transition period when both are in use. Additionally, they proposed a vessel pooling option for greenhouse gas regulatory compliance, allowing the collective performance of a group of vessels to be considered instead of just individual ships.
The executives expressed their shared conviction that regulation can play a key role in mitigating the cost of the green transition within the transport sector, 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, they added.
What they said
“The momentum for green fuel is building and we are pleased to see strong partnerships across the industry as we continue our joint efforts of making decarbonisation in shipping successful,” commented Vincent Clerc, CEO of A.P. Moller – Maersk.
Elsewhere, Rolf Habben Jansen, chief executive officer of Hapag-Lloyd, added, “We believe that a regulatory framework and clear targets are crucial to accelerating the introduction of alternative fuels and reducing our carbon footprint. This commitment is in line with Hapag-Lloyd’s goal of achieving a net-zero carbon fleet by 2045 and reflects our industry’s unwavering commitment to environmental responsibility.”
Also commenting, Rodolphe Saadé, chairman and chief executive officer of the CMA CGM Group, noted, “This sets an ambitious milestone for the decarbonisation 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.”
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