COP28: Global shipping CEOs call for maritime decarbonization 'cornerstones'

Chief executive officers of leading shipping lines worldwide issued a joint declaration at the UN Climate Change Conference, calling for the establishment of four 'cornerstones' for maritime decarbonization and urging the International Maritime Organization to create a regulatory environment to expedite the transition to green fuels.

The cornerstones include an end date for new building of fossil fuel only ships and a clear greenhouse gases intensity standard timeline, an effective GHG pricing mechanism, a vessel pooling option for GHG regulatory compliance as well as a well-to-wake GHG regulatory basis, A.P. Moller-Maersk, whose CEO is also party to the declaration, said on its website Dec. 1.

Some of the other CEOs part of this declaration are from global shipping companies CMA CGM, Hapag-Lloyd, MSC and Wallenius Wilhelmsen.

An end date for new building of fossil fuel-only vessels and a clear GHG intensity standard timeline will help inspire investment confidence, both for new ships and the fuel supply infrastructure, while an effective GHG pricing mechanism would make green fuel competitive with black fuel during the transition phase when both are used, the declaration said, adding that this could be done by distributing the premium for green fuels across all fossil fuels used.

"With low initial volumes of green fuels any inflationary effects are minimized. The mechanism must also feature an increasing regulatory incentive to achieve deeper emissions reductions," the declaration said.

(opens in a new tab)

Beyond covering the 'green balance fee', revenue generated by the mechanism should go to a research, development, and demonstration, or RD&D, fund and to investments in developing countries to ensure a just transition for everyone, the declaration said.

A vessel pooling option for GHG regulatory compliance, where the performance of a group of vessels could count instead of only individual ships, would ensure that investments are made where they achieve the greatest GHG reduction, the declaration said. Pooling would therefore ensure the immediate commercial viability of ships that can accomplish drastic emissions reductions.

In addition, a well-to-wake or lifecycle GHG regulatory basis will likely align investment decisions with climate interests and mitigate the risk of stranded assets, the declaration said.