News Analysis: Shipping industry in same boat to navigate through decarbonization uncertainties

Source: Xinhua

Facing a continuous increase in carbon emissions and challenges posted by climate change, experts said the shipping industry needs proactive and global solutions, rather than a piecemeal approach.

HONG KONG, Oct. 23 (Xinhua) -- The global shipping industry needs to be proactive rather than reactive toward decarbonization, and global cooperation is necessary to ensure smooth sailing in uncharted waters, industry leaders and experts have said at an international forum.

The environmental agenda has always played a large and impactful role in shipping, and related regulations have had a tendency to be reactive, driven by a specific incident, said Bjorn Hojgaard, chairman of the Hong Kong Shipowners Association, during the first World Maritime Merchants Forum that concluded here Wednesday.

"But in today's environmentally aware society, and endangered future, where disaster and climate change would be a disaster too late, the world and shipping can no longer afford to be reactive," he said.

Ji Yulong, dean of Graduate School at Dalian Maritime University, said that the continuous increase in carbon emissions will adversely affect the safety of the shipping industry and global trade, and inevitably, the industry will be restricted by increasingly stronger carbon emissions regulations.

"If no active countermeasures are taken, shipping costs will be greatly increased," Ji told Xinhua after attending the forum online.

The International Maritime Organization's stated greenhouse gas strategy aims to reduce CO2 emissions of international shipping by at least 40 percent by 2030, pursuing efforts towards a 70-percent drop by 2050, in comparison to 2008 levels.

"What we need to look at in the midterm are alternative fuels. A couple of years ago, alternative fuels accounted for less than 1 percent of the world's fleet. Today, that figure has grown significantly, with more than 18 percent of the deep-sea oil fleet capable of burning alternative fuels," said Hojgaard.

While liquified natural gas and liquified petroleum gas have been the most recently popular alternatives to conventional fuels, hydrogen, ammonia, and methanol are other fuels in play for a role in the future with a clear winner yet to emerge, he said.

Given that many would believe the shipping industry is navigating toward an "inevitable green future," differences remain on the "how" and "when" to achieve that ultimate carbon neutral goal.

"At present, there are no such uniform regulations globally for a 'carbon neutral' shipping, nor is there a clear technical path. This has led to alternative fuel-related investments still being in their infancy," said Xu Lirong, chairman of COSCO Shipping, in his speech for the forum.

"From production to sales, there is no reliable supply chain. Fuel supplies and infrastructures are insufficient, hindering the process of shipping industry emission reduction," he said.

Given the challenges ahead, industry heavyweights and international maritime organizations at the forum believe that the shipping industry needs global solutions, rather than a piecemeal approach.

"Cooperation and win-win thinking is the way out. For shipping enterprises, emission reduction is no longer just a question of technology and fuel supply choices but involves all participants, such as cargo sources, customers, operations, safety, regulation, and finance," Xu said.

A single enterprise or a single industry cannot cope with it, which requests more extensive cooperation, Xu added. ■