At the United Nations Global Compact (UNGC) High-Level Ocean for the Future meeting held at the United Nations in New York on September 23, business leaders from shipping, ports, energy companies and banks called on the International Maritime Organization (IMO) Member States to support a global regulatory framework that accelerates the maritime industry’s drive towards net zero by 2050, according to the company's release.
Once again shipping CEOs from the largest liner companies, including MSC CEO Soren Toft, jointly called for the International Maritime Organization (IMO) to agree on and implement effective regulations to lower the price gap between conventional and net-zero GHG marine fuels, including bio and synthetic LNG. Currently low emission fuels appear 2-5 times costlier than conventional fuels.
This call-to-action from the world’s largest shipping companies comes right before the IMO’s Marine Environmental Protection Committee (MEPC) will convene end of September where they are set to further refine different proposals for a global fuel standard and carbon/GHG pricing – including how to charge for it, who would collect it and which fuels are considered low-carbon/GHG.
MSC has fully supported and committed to net decarbonization by 2050. As such, MSC’s fleet renewal strategy includes over 100 dual fuel LNG containerships on order, and over 300 retrofits already being implemented across the existing fleet. The technology for today’s fleets to run on net-zero fuels already exists but scalable production and infrastructure still inhibit accessibility to these fuels.
MSC hopes that a clear consensus will emerge at IMO MEPC, one that balances ambition with pragmatism, and sends a strong signal that governments are up to matching the shipping industry’s commitment to change.
Meeting delegates also voiced that regulations must be just, inclusive and ambitious. The human element is a crucial component to decarbonizing shipping by 2050 as it will be the seafarers who will need to safely operate engines running on net zero fuels. Therefore, crew upskilling will be critical to meet the target of net zero by 2050.
The High-Level Ocean of the Future meeting also showed the need to ensure a sustainable and resilient economy capable of adapting to global disruption. Trade opportunity and the liner shipping sector has for decades empowered communities to reach markets far beyond their coastlines.
Disruptive events over the past five years have brought to fore the importance of commercial shipping for world commerce. A fit-for-purpose regulatory regime for the maritime sector, which combines the fundamental requirements for future fuels, as well as carbon-pricing via an economic element will be essential to close the gap between today and tomorrow, and ultimately catalyze the development and uptake of net-zero fuels.