In a remarkable move, CEOs of major global shipping lines including A.P. Moller – Maersk, CMA – CGM, Hapag Lloyd, MSC, and Wallenius Wilhelmsen, have jointly declared their commitment to accelerating the decarbonization of the maritime industry. This unprecedented collaboration comes as a pivotal step in addressing the urgent need for concrete regulatory measures to fuel the industry’s green transition.
Industry Leaders Call for Action at COP28
The CEOs issued a joint declaration at COP28, calling for an end date for fossil-only powered newbuilds and urging the International Maritime Organization (IMO) to establish regulatory conditions that facilitate the rapid adoption of green fuels. The shipping industry, contributing 2-3% of global greenhouse gas emissions, faces the imperative of meeting IMO’s 2030, 2040, and net-zero 2050 greenhouse gas targets.
Four Regulatory ‘Cornerstones’ Proposed
The CEOs outlined four crucial regulatory ‘cornerstones’ to drive the industry’s green transition:
- End Date for Fossil Fuel-Only Vessels: The CEOs advocate for a clear timeline for newbuilds, promoting investment confidence for both new ships and the necessary fuel supply infrastructure.
- GHG Pricing Mechanism: An effective mechanism to make green fuel competitive with conventional fuel during the transition phase, ensuring a fair distribution of costs and incentivizing deeper emissions reductions.
- Vessel Pooling for GHG Compliance: Introducing a vessel pooling option for regulatory compliance, allowing a group of vessels’ performance to contribute collectively towards GHG reduction targets.
- Well-to-Wake GHG Regulatory Basis: A lifecycle GHG regulatory approach to align investment decisions with climate goals and mitigate the risk of stranded assets.
CEOs Express Shared Conviction and Vision for Regulation
In an unprecedented move, industry leaders expressed their shared conviction that regulation plays a pivotal role in mitigating the costs and risks associated with the green transition. Vincent Clerc, CEO of A.P. Moller – Maersk, emphasized the importance of efficient regulatory conditions to maximize greenhouse gas emission reductions per invested dollar.
Quotations Reflect Commitment and Optimism
Vincent Clerc of A.P. Moller – Maersk stated, “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 decarbonization in shipping successful.”
Rodolphe Saadé, Chairman and CEO of the CMA CGM Group, highlighted their ambition, stating, “This new commitment is fully in line with the CMA CGM Group’s ambition to be Net Zero by 2050.”
Soren Toft, CEO of MSC Mediterranean Shipping Company, emphasized the need for global support, stating, “Today it feels like we are one step closer in this regard, but concrete supply of alternative fuels and globally recognized GHG pricing are essential to achieve our goals.”
Lasse Kristoffersen, CEO of Wallenius Wilhelmsen, expressed the importance of a global regulatory framework, stating, “Now, we need a global regulatory framework matching this ambition to drive the investments needed at a global scale.”
Conclusion: A Unified Front for a Sustainable Future
The joint declaration from shipping CEOs signifies a historic moment in the industry’s commitment to sustainable practices. As global temperatures rise, the call for regulatory measures to accelerate the transition to green fuels becomes more urgent. The collaborative efforts of these industry leaders underscore the collective responsibility towards a sustainable future.
