Effects of COP28 on the shipping industry

DUBAI : In particular, in an article published on LR website, Mr. Hayden Walmsley notes that industry sees the opportunities, not just the challenges as the maritime industry’s outlook has shifted, significantly. The  The COP28 Summit concluded on 12th of December in Dubai, reaching -after a prolonged debate and much controversy- the UAE Consensus that plans to phase out fossil fuels. During the summit, global maritime leaders united for net zero shipping in an event coordinated by the International Chamber of Shipping (ICS), in partnership with the Emirates Shipping Association.

Shipping maintains the lowest CO2 per tonne per mile and the industry is eager to maintain this mantle as other transport sectors decarbonise. COP28 showed shipping is striving for investment, to seize the opportunities presented by the energy transition.

He continues his argument citing the ‘Green Shipping Challenge’ as an example where countries, ports, and companies made more than 60 major announcements or updates to announcements on issues ranging from new green shipping corridors; to integration of new zero and near-zero emission fuels and technologies; new training frameworks for seafarers on new maritime fuels; and supporting the overall implementation of the 2023 IMO GHG Strategy long-term goal and indicative checkpoints.

• Amazon and other Cargo Owners announced Zero-Emission Maritime Buyers Alliance (ZEMBA)
• Australia announced a Maritime Emissions Reduction National Action Plan.
• The Port of Antwerp-Bruges is to become import hub for green hydrogen.
• Brazil and Port CEOs of Hamburg, Açu, Halifax, and Antwerp joined the Clean Energy Marine Hubs.
• Fortescue “Green Pioneer” was unveiled and will become the world’s first ammonia capable ship.
• Höegh Autoliners has invested $1.2 billion in building 12 new net zero ammonia-ready car carriers that will decarbonize international shipping.
• Wind Challenger – Mitsui O.S.K. Lines wind powered vessel “SHOFU MARU” sets sail.
• Wallenius Wilhelmsen announced green energy new-builds for a net-zero end-to-end offering by 2027, as well as a commitment to making wind propulsion a reality again.
• Yara International and partners announced the world’s first container ship that will use clean ammonia as fuel. Named Yara Eyde, the vessel will be the first to sail emission-free sea route between Norway and Germany.

Hayden also highlights that partnerships are key and provided feedback from the summit. According to LR CEO Nick Brown, ”whilst we await the future fuelled vessels to come online, and for the production of future fuels to be scaled up, the best fuel saved is the fuel not burnt”.

Until we can phase out the use of fossil fuelled vessels, “there are lots of relatively simple energy saving devices we can add today… whether its rudders, propellers, bow optimisation, paint, fins, air lubrication, wind assistance. All need to be adopted at much greater pace and scale.”

Others also talked of the need for carbon pricing, with acceptance across panels that some form was inevitable and necessary to level the playing field while Alicia Eastman, CEO of Intercontinental Energy, emphasized on ensuring that consumers do not face a dilemma between responsibly produced, zero-emission fuels and those accompanied by pollution in their production.

Whilst official texts from COP28 have been received with mixed reactions, shipping was united at COP. United to seize the opportunities afforded by decarbonisation, united in partnerships to drive advancement and united by the desire to get regulations right.

…he concluded.