- This is a tiny price to pay for cleaning up one of the dirtiest industries on earth.
- The shipping industry is the backbone of global trade.
- However, on an itemized basis, the price of consumer products would barely budge.
According to a recent analysis of the cost of decarbonizing European shipping, running ships exclusively on green hydrogen-based fuels (e-fuels) would cost less than €0.10 more per pair of sneakers and up to €8 more for every refrigerator as reported by Maritime News.
Price hikes for consumers
The analysis of shipments from Shenzhen in China to Europe debunks claims by the shipping industry that ambitious measures to green the industry will be prohibitively expensive and cause exorbitant price hikes for consumers.
This is a tiny price to pay for cleaning up one of the dirtiest industries on earth.
“In a year where shipping companies are making bigger profits than Facebook, Google, Amazon, and Netflix combined, it is right to question whether shipping companies are doing enough.”
The shipping industry is the backbone of global trade.
But, to date, the industry has been slow to decarbonize and it remains one of the heaviest polluting industries in the world.
This reflects the economies of scale in global supply chains that are not hypersensitive to shipping fuel costs.
European policymakers, who are currently voting on two key proposals to clean up shipping, should be emboldened by this, says T&E. The first is a historic extension of the carbon market to shipping which was backed last week in the European Parliament and is now in the hands of national governments.
The second is a shipping fuels law which will be voted on in July.
In the worst-case scenario, cargo companies would face increased transport costs of 1% to 1.7%.
However, on an itemized basis, the price of consumer products would barely budge.
A pair of trainers would cost just €0.003 more, a television €0.03 and a refrigerator up to €0.27 more.
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Source: Maritime News