OGC stated that Karsten Kildahl, CCO of Maersk, emphasized the need for legislative action to reduce the cost disparity between conventional and green fuels. Speaking at a vessel-naming ceremony in Felixstowe, he underscored that many of Maersk’s customers have climate goals but face significant financial challenges in adopting greener fuels, which currently cost two to three times more than traditional fuels.
The Cost Dilemma: Green vs. Traditional Fuels
Mr. Kildahl highlighted a critical issue for shippers who must choose between cost-efficiency and environmental responsibility due to the high price of green fuels. Even with existing penalties like the EU’s ETS and FuelEU Maritime, the added costs for traditional fuels remain too low to encourage a shift to green alternatives.
The Role of the Green Balance Mechanism (GBM)
In collaboration with the World Shipping Council, Maersk supports the proposed Green Balance Mechanism (GBM), which aims to balance fuel costs by imposing fees on fossil fuels and using the funds to subsidize green fuels. This would allow shippers to choose environmentally friendly options without facing prohibitive costs.
Mr. Kildahl urged global policymakers to prioritize legislation to close the fuel-pricing gap, enabling shippers to make sustainable choices without compromising financial viability.
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Source: OGC
