A new report from the Sea Cargo Charter (SCC) has unveiled alarming statistics regarding the shipping industry’s progress towards international climate targets. The report, which represents a global transparency initiative by the Global Maritime Forum, reveals that in 2023, the industry fell short of minimum international climate goals set by the International Maritime Organization (IMO) by an average of 17%. This shortfall translates to a staggering 165 million metric tonnes of CO2 equivalent.
The SCC, encompassing 20% of global bulk cargo transport, also highlighted that when aiming for the IMO’s more ambitious ‘striving’ goals, the misalignment was even greater, averaging 22% or 204 million metric tonnes of CO2e in 2023. This data underscores a critical need for accelerated efforts within the shipping sector to curb emissions.
Currently, sectors such as dry bulk, general cargo, and tankers collectively contribute around 400 million tonnes of CO2 emissions annually. With global trade projected to quadruple by 2050, urgent and concerted action is imperative to prevent a drastic surge in emissions.
For the first time, the 2024 report includes rigorous assessments against the IMO’s revised Greenhouse Gas (GHG) Strategy, which outlines ambitious net-zero emissions targets for 2050 with interim goals set for 2030 and 2040. This expanded reporting now encompasses “well-to-wake” emissions, providing a comprehensive view from fuel extraction to end-use, thereby enhancing the industry’s transparency and accountability in pursuing decarbonization.
Despite these sobering statistics, there are positive signs of progress. The number of SCC signatories has grown to 37 in 2024, with 35 reporting this year, marking a significant increase from previous years and indicating a growing commitment to sustainability. Moreover, the average reporting percentage has risen steadily, reaching 93.2% this year compared to 80% in 2022, reflecting improved industry collaboration and data sharing initiatives.
Rasmus Bach Nielsen, Chair of the Sea Cargo Charter and Global Head of Fuel Decarbonisation at Trafigura, emphasized the importance of transparency and accountability in driving these positive changes. He noted, “The Sea Cargo Charter’s expanding coverage and stringent reporting criteria set a new standard for environmental stewardship in the maritime sector. By integrating climate considerations into business decisions, we are not only enhancing emissions transparency but also accelerating our journey towards a sustainable future.”
The report identifies several challenges hindering emission reductions, including geopolitical disruptions, limited availability of green fuel options for long voyages, and insufficient infrastructure to support new technologies. Looking ahead, starting next year, shipowners will be included in the annual report, marking a pivotal step towards comprehensive transparency across the entire shipping value chain.
While meeting the more ambitious IMO targets presents formidable challenges, industry stakeholders remain optimistic and committed to the evolving SCC framework. The report’s findings underscore a sector increasingly aware of its environmental impact and actively seeking solutions through innovation and collaboration.
In conclusion, the SCC’s 2024 report serves as a critical call to action for the shipping industry. While significant challenges lie ahead, enhanced transparency, intensified collaboration, and alignment with global climate goals offer a pathway towards a more sustainable future. With continued dedication and innovation, the maritime sector can navigate the complexities of decarbonization and contribute to global climate efforts effectively.
Source:Sea Cargo Charter
