COP28: Shipping companies urge IMO to fast track green fuel regulations
Shipping companies at the ongoing UN Climate Change Conference (COP28) urged the International Maritime Organization (IMO) to create “concrete measures” that will accelerate investment in the maritime industry’s green energy transition.
PHOTO: Maersk's 2,100 TEU dual-fuelled methanol feeder vessel. A.P. Moller-Maersk
The chief executive officers (CEOs) of several global shipping lines have led a coalition and jointly advocated for an “end date for fossil-only powered newbuilds,” at COP28, global shipping company A.P. Moller-Maersk stated.
The coalition is made up of shipping giants such as A.P. Moller-Maersk, CMA CGM, Hapag-Lloyd, Mediterranean Shipping Company (MSC), and Wallenius Wilhelmsen.
The joint declaration calls for establishing regulatory “cornerstones”:
- Establishing an end date for building new vessels that run on conventional-oil-based marine fuels, along with a clear timeline for a greenhouse Gas (GHG) Intensity Standard to expedite investments in new cleaner ships and fuel infrastructure for an accelerated energy transition.
- Implementing an effective GHG Intensity Standard timeline that will accelerate investments for new ships and fuel supply infrastructure to fasten energy transition.
- An effective GHG pricing mechanism to ensure competitiveness between green fuels and conventional-oil-based marine fuels during the transition phase when both fuels are used. IMO must also increase regulatory incentives for green fuel-powered ships to achieve deeper emissions reductions.
- Introducing a vessel pooling option for GHG regulatory compliance, where the performance of a group of vessels is considered instead of individual ships.
- A well-to-wake or lifecycle GHG regulatory basis to align investment decisions with climate interests and mitigate the risk of stranded assets.
“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,” Maersk further said in a statement.
Regulatory conditions will drive shipping companies to develop the most effective GHG reduction scheme per invested US Dollar, said Vincent Clerc, chief executive officer of A.P. Moller–Maersk. “This includes an efficient pricing mechanism to close the gap between fossil and green fuels and ensuring that the green choice is easier to make for our customers and consumers globally,” he further added.
“Our collective responsibility for a sustainable future and clean practices is paramount. We believe that a regulatory framework and clear targets are crucial to accelerating the introduction of alternative fuels and reducing our carbon footprint,” said Hapag-Lloyd’s chief executive officer Rolf Habben Jansen.
By Aparupa Mazumder
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