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Future environmental protection measures would be another litmus test for shipowners

Post-summit net zero aimed measures will again unveil crew’s values in their employers’ eyes

There were several carbon neutrality-themed recommendations discussed, and one of them was phasing out fossil fuels. Some countries were not prepared to implement for financial reasons. While the reservations presented were valid, it is still the shipowners’ call on their approaches to reduce carbon dioxide (CO2) emissions.

Business dilemmas are here to stay
Industry observers have accepted that meeting net zero targets is impossible at this point. The International Maritime Organisation (IMO) would be revisiting its original targets – cut emissions by 50 per cent by 2050, and achieve carbon neutrality before 2100. However, not many economies have the means to facilitate transitions. Indonesia, a top coal exporter aimed to meet 23 per cent of its energy needs with renewable sources by 2025 and reach net-zero carbon emissions by 2060.

Furthermore, a Clydebank Declaration was launched at the COP26 Summit, which garnered 19 countries’ support in creating zero emissions shipping routes between ports to accelerate decarbonisation. It entailed establishing at least 6 green shipping routes between 2 (or more) ports. A mega shipowner point out they have invested over US$30 million over the last 3 years to bring their carbon emissions down through digital solutions. Christian Ingerslev, Chief Executive of Maersk Tankers said, “We need governments to not only back the regulatory push but also help create the zero emissions fuels at scale. The only way this is going to work is to set a market-based measure through a carbon tax.”

It was clear this climate crisis song and dance revolved around funding. When shipowners realise that it is not feasible for them to invest further, seafarers be affected as they need training on new technologies and everything related. The industry can expect another waiting game between private and public sectors; whom would be the first to take on financing.

Incidentally, Indonesia’s Finance Minister Sri Mulyani Indrawati, commented at a CNBC’s Sustainable Future Forum in October, “A combination of taxation and subsidies would be needed to help coal firms gradually transition to greener industries. We do not want to kill the business, we want it to be an affordable and just transition.”


Crewing Online News Team
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