Switch To Green Fuels is Expensive But Focus on Bigger Picture, Says Maersk CEO


  • International shipping was responsible for approximately 2% of “global energy-related CO2 emissions in 2020,” according to the International Energy Agency.
  • With concerns about sustainability mounting, the sector will need to find new ways of reducing the environmental footprint of its operations.

The CEO of shipping giant Moller-Maersk admitted to CNBC Thursday that shifting to “green” fuels would come at a cost, but emphasized the importance of focusing on the bigger picture rather than short-term pain.

Green Fuels are expensive

Soren Skou’s comments come a day after his company said it wanted the entire business to reach net-zero greenhouse gas emissions in the year 2040, 10 years ahead of its previous goal.

When we embark on this carbon neutrality journey, we are going to use … green fuels,” Skou, who was speaking to CNBC’s “Squawk Box Europe,” said. As a starting point, these fuels were “probably two to three times … much more expensive,” Skou said.

But we’re looking at this over a 20 year horizon and therefore, we think that the inflationary impact will be very modest when it comes out to the consumer.”

As an example, we are spending around $400 per container on fuels today,” Skou said. “If it triples we need to spend another $800 per container.”

That’s of course a lot, but … inside the container you have 8,000 pairs of sneakers, for instance, so it’s 10 cents per pair of sneakers. So that’s why I think … for the consumer, it will be manageable.”

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Source: CNBC


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