Maersk CEO shares three imperatives for shipping’s decarbonization to succeed

Ahead of the key global event that will decide the pace of shipping’s decarbonization, Vincent Clerc, CEO of Danish shipping and logistics giant A.P. Moller – Maersk, has highlighted three imperatives that will be crucial if the maritime industry wants to meet ambitious emission reduction targets.

According to Maersk CEO, the success of these efforts hinges on three imperatives:

1.     We need to close the price gap between green and fossil fuels – right now with a financial mechanism effectively levelling out the price difference between green and fossil fuels and rewarding the right fuel choices.

2.     We need to ensure a well-to-wake approach that is science-based and results in genuine emission reductions. Otherwise, we will merely be moving emissions around from one sector to another.

3.     We need to ensure this green transition is just and supports developing countries. A number of these countries, provided that investments and funding is geared in their direction could become the world’s new green bunkering hubs.

 “Maersk fully supports the Green Balance Mechanism proposed by the World Shipping Council which addresses all three points. We optimistically look forward to meaningful MEPC discussions next week, with the ambitious result of an IMO member state agreement that truly charts a net zero course for the maritime industry,” Clerc concluded.

This proposal will be brought to the table during negotiations at the IMO MEPC 81.

Maersk CEO, together with chief executive officers of the world’s leading shipping companies, recently issued a joint declaration at COP 28 calling for an end date for fossil-only powered newbuilds and urging the UN global maritime regulator to create the regulatory conditions to accelerate the transition to green fuels. Their joint declaration, signed last year, calls for establishing four regulatory ‘cornerstones’.

Apart from cutting GHG emissions from ships, the upcoming MEPC 81 will also address the energy efficiency of ships; tackling marine litter; the adoption of amendments on reporting procedures for lost containers / recommendations on carriage of plastic pellets by sea in freight containers; Ballast Water Management Convention implementation; proposals for Emission Control Areas; the implementation of the Hong Kong Convention on ship recycling ; marine diesel engine replacing a steam system; and the underwater noise reduction.