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Liner chiefs vow to end fossil fuels in shipping

[ December 1, 2023   //   ]

The chief executive s of five global shipping lines issued a joint declaration at the COP 28 environmental summit on 1 December calling for an end date for fossil-only powered newbuilds and urged the International Maritime Organization to accelerate the transition to green fuels.

The heads of Maersk, CMA CGM, Hapag Lloyd, MSC and Wallenius Wilhelmsen said that the only realistic way to meet net-zero 2050 greenhouse gas targets for an industry that accounts for 2-3% of global GHG emissions is to move from fossil to green fuels at scale and at pace.

Their joint declaration calls for the establishment of four regulatory cornerstones:

-An end date for new building of fossil fuel-only vessels and a clear GHG Intensity Standard timeline to inspire investment confidence, both for new ships and the fuel supply infrastructure needed.

-An effective mechanism to make green fuel competitive with ‘black’ fuel during the transition. This could be done by distributing the premium for the green fuels across all the fossil fuel used. There should also be a regulatory incentive to achieve deeper emissions reductions. Revenue generated by the mechanism should go to a research fund and to investments in developing countries.

-A vessel pooling option for GHG regulatory compliance whereby the performance of a group of vessels would be counted instead of only that of individual ships, ensuring investments are made where they achieve the greatest GHG reduction.

-Well-to-Wake or lifecycle GHG regulation to align investment decisions with climate interests and mitigate the risk of stranded assets.

CMA CGM Group chairman and chief executive Rodolphe Saadédescribed the plan as “an ambitious milestone for the decarbonization of our industry. By collaborating with others, we each take a new step in our energy transition, while ensuring a collective level playing field and access to greener fuels for the industry.”

Chief executive AP Moller – Maersk, Vincent Clerc, added: “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 decarbonisation in shipping successful.”

MSC Mediterranean Shipping Company chief executive, Soren Toft, said: “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.”

The five chief executives said they looked forward to being joined by other companies in the venture.

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