24 C
November 30, 2023

Global Shipping Industry needs $2.4 trillion to achieve net-zero emission by 2050

By Priti Naik

The global shipping industry will need around $2.4 trillion to achieve net-zero emission by 2050, according to an analysis. The industry will require around $500 billion by 2030. The Ocean freight costs are likely to remain high in 2022 as investors and regulators scramble to accelerate decarbonisation of the shipping industry and the companies grapple with green financing.

Tony Foster, chief executive of specialist asset manager Marine Capital, said, “Certainly, the European banks at least and not far behind the American banks will have to meet criteria that satisfy sustainable finance.” He further added, “When it comes to new assets it is going to be increasingly difficult to fund anything that does not quite qualify and the same will be true, perhaps even more so, with existing assets.”

The Shipping industry which contributes 90% of the world trade through transport and nearly 3% of the world’s CO2 emission is under growing pressure from environmentalists to deliver more concrete action including a carbon levy. In this regard, the International Maritime Organization, the UN’s specialist shipping agency, has said it has made progress on short-term greenhouse gas reduction measures.

Although the amount of oil transported by sea has been steadily increasing in the past decade, only 8 out of a total of 62 medium and large tanker spills around the world occurred in EU waters. Despite maritime transportation being improved through its environmental footprint, the industry still faces huge challenges in decarbonising and reducing pollution.

Compared to 2008, the speed of most ships calling at the European Union has been reduced by 20%, thereby reducing carbon emissions. In addition, non-traditional fuels and energy sources, such as biofuels, batteries, hydrogen and ammonia, are becoming possible alternatives, to make the decarbonization of the shipping industry promising.

Related posts

Puducherry port to become functional in November

Littoral Wind

SAFEEN Feeders Launches New UAE- China Service

Littoral Wind

Thoothukudi is pro-industry and will be soon developed into an industrial hub: Kanimozhi Karunanidhi

Littoral Wind

Leave a Comment