{"id":80810,"date":"2023-11-27T00:00:00","date_gmt":"2023-11-27T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/climate\/2023\/11\/27\/dp-world-partners-with-irena-to-boost-maritime-logistics-decarbonization\/"},"modified":"2023-11-27T00:00:00","modified_gmt":"2023-11-27T00:00:00","slug":"dp-world-partners-with-irena-to-boost-maritime-logistics-decarbonization","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/climate\/2023\/11\/27\/dp-world-partners-with-irena-to-boost-maritime-logistics-decarbonization\/","title":{"rendered":"DP World partners with Irena to boost maritime logistics decarbonization"},"content":{"rendered":"

<\/strong>Irena <\/strong>+ DP World partner to decarbonize maritime shipping:<\/strong> The International Renewable Energy Agency (Irena) and UAE-based global port operator DP World signed an agreement to collaborate on scaling up the use of renewable-based fuels and electrifying the shipping and ports sectors, according to a statement<\/a> released on Friday. The agreement will see the two organizations partner on aligning the current infrastructure, logistics, and processes with the demands of the energy transition, the statement notes.<\/p>\n

Irena is on a roll:<\/strong> The agency also launched The Accelerated Partnership for Renewables in Africa with Kenya, Denmark, Germany, and the UAE to promote renewable energy in Africa in September<\/a>. The partnership focuses on mobilizing finance, providing technical assistance and capacity building, and encouraging private sector participation.<\/p>\n

What they said:<\/strong> \u201cTo align with the goals of the Paris Agreement and meet the demands of a transforming energy landscape, we must overcome existing infrastructure barriers, including in shipping and ports. By partnering with DP World, we aim to transform these sectors, making them more conducive to the global energy transition, where renewables-based fuels will play an increasingly prominent role,\u201d said Irena Director-General Francesco La Camera. <\/p>\n

DP World keeps a green path:<\/strong> DP World is using the proceeds of its USD 1.5 bn green sukuk issuance to fund eligible green projects<\/a> including renewable energy, energy efficiency, electrification, and clean transportation. DP World and operator of the Khalifa bin Salman Port APM Terminals announced implementing a new initiative last month to expedite decarbonization efforts<\/a> by electrifying container handling equipment. The port operator also halved CO2 emissions<\/a> from its UAE operations reaching a 47% reduction by accessing renewable power from the Dubai Electricity and Water Authority, which issued more than 200k International Renewable Energy Certificates to DP World this year. <\/p>\n

IN OTHER SHIPPING NEWS- <\/strong>EU carbon market reforms will cost the shipping industry <\/strong>USD bns:<\/strong> The EU\u2019s Emissions Trading System (ETS) reforms approved earlier this year<\/a> \u2014 which added shipping emissions to the carbon market from 2024 \u2014 will cost the sector USD 3.6 bn in levies next year, Bloomberg<\/a> reported last week, citing an estimate by Drewry Shipping Consultants. Shippers only have to cover 40% of their emissions in 2024, which will then go up to 70% in 2025 and 100% in 2026 \u2014 the same year methane and nitrous oxide emissions come under the rules, according to the European Council<\/a>. The levies will be imposed on all maritime vessels, from cargo ships to LNG carriers sailing from and docking at EU\u2019s ports. <\/p>\n

What price will the carbon be traded at<\/strong>? One estimate from marine classification society DNV predicts the carbon price under the ETS to be EUR 90 per ton of CO2 in 2024, Bloomberg notes. Another Reuters poll of seven analysts released earlier this year<\/a> predicted EU allowances will average EUR 96.2 in 2024, and EUR 104.8 per ton in 2025. The carbon tax is \u201calmost certainly going to rise\u201d after 2024 as the EU updates its climate action strategies, according to the newswire. <\/p>\n

The carbon price likely to be too low to sway shipping companies away from fossil fuels: <\/strong>Assuming a carbon price of EUR 90 a ton in 2024, a container ship sailing between Europe and Asia could incur charges of about EUR 810k, equivalent to only around 10% of what the same ship\u2019s annual fuel bill would be.\u201dThe new rules are unlikely to enable clean alternatives like green methanol to compete on price with fossil fuels in the near future,\u201d senior consultant at Drewry Stijn Rubens said. <\/p>\n

REMEMBER- The shipping industry accounts for <\/strong>nearly 3%<\/a><\/strong> of global greenhouse gas emissions<\/strong>, with emissions escalating by 20%<\/a> in just a decade. Decarbonizing the sector would require an additional USD 8 bn to USD 28 bn annually by 2050. Given the affordability of gas and oil prices, the ETS is unlikely to incentivize a transition to green methanol utilization in the maritime industry until 2026, Bloomberg notes. Investments ranging from USD 28 bn to USD 90<\/a> bn annually will be required to develop infrastructure for 100% carbon-neutral fuels by 2050, according to UNCTAD.<\/p>\n","protected":false},"excerpt":{"rendered":"

DP and Irena will work on scaling the use of renewable-based fuels and electrifying the shipping sector<\/p>\n","protected":false},"author":1,"featured_media":80811,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[257],"tags":[255,74,72,11,173,285,404,52],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-80810","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-decarbonization","tag-carbon-offsetting","tag-decarbonization","tag-dp-world","tag-enterpriseclimate","tag-eu","tag-green-shipping","tag-irena","tag-uae","wpautop","entry"],"acf":{"mongo_id":"25dfea3c-2f04-466c-af8f-e348262ed377","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2023\/10\/1505.jpg","photo_position":"above","homepage_title":"","full_issue_title":"DP World partners with Irena to boost maritime logistics decarbonization + EU carbon market reforms will hit the shipping sector\u2019s pockets","related_issue":[80803],"teaser":"DP and Irena will work on scaling the use of renewable-based fuels and electrifying the shipping sector","voice_url":"https:\/\/s3.us-east-1.amazonaws.com\/ent.news\/audio\/2023\/11\/.99d892b2-2244-4879-b92f-1ef2ed2734fa.mp3"},"yoast_head":"\nDP World partners with Irena to boost maritime logistics decarbonization - Climate<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/climate\/2023\/11\/27\/dp-world-partners-with-irena-to-boost-maritime-logistics-decarbonization\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"DP World partners with Irena to boost maritime logistics 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