MSC, Maersk, CMA CGM, Hapag-Lloyd and Wallenius Wilhelmsen call for an end date of fossil-only powered newbuilds
The CEOs of leading global shipping lines, MSC, Maersk, CMA CGM, Hapag-Lloyd and Wallenius Wilhelmsen, issued a joint declaration at COP 28 on Friday calling for an end date for fossil-only powered newbuilds and urging the International Maritime Organization (IMO) to create the regulatory conditions to accelerate the transition to green fuels.
The only realistic way to meet the new targets set out by IMO this year is to transition from fossil to green fuels at scale and at pace, the five CEOs argued in a joint statement, which has the backing of Emmanuel Macron, the French president among others.
The joint declaration calls for the establishment of four regulatory cornerstones starting with an end date for newbuilding of fossil fuel-only vessels and a clear greenhouse gas (GHG) intensity standard timeline to inspire investment confidence, both for new ships and the fuel supply infrastructure needed to accelerate the energy transition.
Secondly, they have called for 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.
The five men have also called for 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.
Finally, they have demanded a well-to-wake or lifecycle GHG regulatory basis to align investment decisions with climate interests and mitigate the risk of stranded assets.
“Our collective responsibility for a sustainable future and clean practices is paramount,” commented Rolf Habben Jansen, CEO of Hapag-Lloyd
“The support of governments across the world will be an essential element to reach our common goal and among those efforts we want to see an end to delivery of ships that can only run on fossil fuels,” said Soren Toft, CEO of MSC, while his counterpart at Wallenius Wilhelmsen, Lasse Kristoffersen, urged for a global regulatory framework to match the ambition of the five companies to drive the investments needed at a global scale.
Isn’t it interesting that the big shipping lines want to have nothing to do with any government or IMO when they make billions in profits and when the market goes down and the profits are paid out to the share holders and gone they ask governments to fork over more money for them to comply or invent the future. I was 46 years at sea and 35 years Master and about everything what was somehow put in place through the IMO was slow walked or only implemented to the minimum possible in the longest time frame.
Now these are realistic proposals by which the private sector can “get on with it”, and not be taken to bankruptcy by the other 80% of the fleet that doesn’t care enough to put money where their greenwashing is. It would be good if Arsenio Domingues to pick them up and run with them. None are new; indeed the “effective GHG pricing mechanism” (meaning, a Carbon Tax like the ETS) was scuppered in 2012-2014 by the main tonnage nations, most of which were still happily denying climate change at that point. If the carbon tax is applied across the board (as it is starting in Europe), it creates a huge budget from which serious shipowners can invest; if pooling is allowed (like FuelEU will be), then Owners can build “Starship Enterprise” to replace the oldest/worst and work their way up the fleet.
This is the real deal. Not fairy talk of 100% of vessels 100% emission-free “tomorrow”; this can be done and should be done within a decade or two.
Nice collaboration
These gentlemen wish to secure their future profits by making mandatory for their competitors to do what has to be done anyway, naturally. It is curious that, with the current developments in technology there is so little interest in harnessing the wind power directly (not suitable for all the ship types obviously). Perhaps building massive offshore windfarms, supplying electricity to the ports / ships containing batteries or building new factories producing novel fuels is better for the big business / ‘economy’ / GDP. Planting trees is not attractive option for the GDP & Co. either. It is just too simple and low cost.
Worst cruise ship I have ever been on they build me for things that I did not receive they comped me things, and then billed me for them. I contacted customer service. They said it would be taken care of immediately and that was a week ago. I’m now on my third email and still no reply.
#80edays inspired the world transporting the first electric car emission free over the Atlantic Ocean and registered at Hapag Lloyd and Maersk to transport the car over the pacific Ocean inspiring the CEOs to think about alternative cargo solutions. I am glad that the project again pushed to rethink like it pushed crossing 2012 China to change to EVs.