LONDON: Sea freight costs are expected to remain high in 2022 as investors and regulators scramble to accelerate the decarbonization of the shipping industry and businesses grapple with green finance, sources say.
Maritime transport, which carries around 90% of world trade and accounts for nearly 3% of global CO2 emissions, is under increasing pressure from environmentalists to take more concrete action, including a carbon tax.
The International Maritime Organization (IMO), the UN’s specialized maritime agency, said it has made progress on short-term greenhouse gas (GHG) reduction measures.
But this timeline is not considered quick enough by environmentalists and a number of IMO’s 175 member countries.
Pakistan calls on developed world to support UN maritime agency process
“At the MEPC (IMO committee) meeting in June next year, there will be a lot of heat and pressure on regulators to ensure they are ready to negotiate a solution rather than kick the box due to misalignment or negotiating tactics. This is really not acceptable, ”said Christian Michael Ingerslev, Managing Director of Maersk Tankers.
Last month, countries including the United States at the COP 26 climate summit pushed the IMO to adopt a zero emissions target by 2050. So far, its goal is to reduce 50% of overall GHG emissions from ships compared to 2008 levels by 2050.
A proposal submitted to the IMO to create a $ 5 billion research and development fund to find the right technology to achieve the targets is still under discussion and further discussions are postponed until next year.
The impact on poorer countries like Pakistan will highlight the challenges ahead.
While the country was a small emitter of carbon, climate change had “directly and severely affected us,” Pakistan Federal Minister of Maritime Affairs Ali Haider Zaidi said.
“Developing countries cannot afford to spend on the kind of infrastructure needed and therefore developed countries need to support the process at IMO,” he told Reuters referring to the fund. of R&D.
Another hurdle is funding the way forward. Shipping will need $ 2.4 trillion to reach net zero emissions by 2050, with around $ 500 billion needed by 2030, analysts estimate.
Posted in Dawn, le 23 December 2021