- Shipping industry willing to pay for premium on ‘green fuels’ says Maersk chief
- More than half of its 200 largest customers have met – or are in the process of setting –signed science-based or zero-carbon targets
- With about 90 percent of world trade transported by sea, global shipping accounts for nearly three percent of the world’s carbon emissions
- Those who can afford to pay the green premium are big global brands that comprise only 10 to up to 20 percent of the business
- Customers in other transport sectors like aviation are likewise able to pay for the green premium
Maersk head Søren Skou says more than half of its 200 largest clients are backing technology to reduce pollution, but philanthropist Bill Gates believes the cost of new approaches will have to reduce “dramatically” for mass adoption says an article on Eco-business.
Clean fuel for transportation
The maritime sector is prepared to pay extra for using clean fuel to transport its cargo over one that emits more greenhouse gases, said Søren Skou, chief executive of Danish shipping giant AP Moller-Maersk.
Zero-carbon targets
Speaking at a virtual session at the Ecosperity sustainability conference on Tuesday, Skou said that more than half of its 200 largest customers have met – or are in the process of setting – signed science-based or zero-carbon targets that will force them to cut emissions that directly and indirectly impact their value chains.
Green methanol
Maersk signed a contract in August to secure green methanol—produced by using renewable sources such as biomass and solar energy—as the world’s largest shipping firm gears up to operate its first carbon-neutral ship in 2023.
3% of the world’s carbon emissions
With about 90 percent of world trade transported by sea, global shipping accounts for nearly three percent of the world’s carbon emissions. Maersk needs to have a carbon-neutral fleet by 2030 to meet its target of net-zero emissions by 2050.
The green premium
While those who can afford to pay the green premium are big global brands that comprise only 10 to up to 20 percent of the business, Skou noted that customers in other transport sectors like aviation are likewise able to pay for it.
Production of new fuels
The scale-up of the production of new fuels will require getting global and regional regulations in place, raising efficiency standards, and getting governments to cut bureaucratic red-tape and slash the time for the approval of permits for low carbon technologies, he shared.
Shift the cost of premium
Juliet Teo, head of transportation and logistics at Temasek, said that the only mechanism that would work would be to shift the cost of the premium to all the customers along the value chain. This could mean more expensive products for consumers.
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Source: Eco-business
