Semiramis Paliou, CEO of Diana Shipping and president of HELMEPA, shed light on the substantial financial implications of transitioning the shipping sector to a zero-pollution era. At a shipping conference in Cyprus, she highlighted the staggering costs involved and the uncertainties surrounding future fuels. With the looming deadlines set by regulatory bodies, the industry faces significant challenges in meeting sustainability goals while balancing financial feasibility.
The Financial Landscape
Paliou revealed that the shipping sector requires approximately USD 1 trillion by 2030 and USD 3.7 trillion by 2050 to transition to cleaner technologies. However, uncertainties persist regarding the availability and viability of future fuels, including biofuels, methanol, and LNG. Transitional solutions, such as methanol dual-fuel vessels, signify progress but also entail risks in terms of investments and operational efficiency.
Impact on Costs and Consumers
Poly V. Chatziioannou, president of Safe Bulkers, expressed concerns over the potential increase in the cost of transporting goods to and from European ports due to regulatory duties and taxes. Despite the principle of “the polluter pays,” some charterers only cover a portion of the expenses, leaving shipowners to bear the rest. Ultimately, consumers are likely to face higher prices for goods as a result of these additional costs, prompting questions about the allocation of funds collected through schemes like the EU ETS.
As the shipping industry grapples with the complexities of transitioning to a zero-pollution era, stakeholders must navigate financial challenges and regulatory uncertainties. Balancing environmental objectives with economic feasibility remains a key concern, with implications for both industry players and consumers alike. Finding viable solutions and fostering collaboration between stakeholders will be crucial in achieving sustainable and economically viable shipping practices in the years to come.
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Source: Port News
