Shipping giants make their decarbonization demands at COP28

Global shipping executives call on IMO to step up green transition: CEOs of global shipping lines Maersk, MSC, CMA CGM, Hapag-Llyod, and RoRo carrier Wallenius have issued a joint declaration to global regulator, the International Maritime Organization (IMO), to hasten efforts to decarbonize the shipping industry, according to a Maersk press release. The statement, which comes on the sidelines of COP28, puts forward four regulatory “cornerstones” to advance the green transition and meet the IMO’s emissions reductions targets for 2030, 2040, and net-zero by 2050, the statement said.

The details: The statement calls for an “end date” for newbuild vessels that are powered solely by fossil fuels. It also calls for a clear greenhouse gas (GHG) “Intensity Standard timeline” to boost investments in new ships and the energy infrastructure to effect the green transition, as well as a payment structure that distributes the green fuel premium to make it more competitive.

They also argue that GHG regulatory compliance should be measured in terms of the performance of a group of vessels, rather than individual vessels, and that regulation on fuels should follow a well-to-wake approach that tracks a fuel’s lifecycle to mitigate investor risk.