Getting to Zero Coalition calls for a policy mix to decarbonize shipping

The new report "Closing the Gap" presented today by the coalition, which outlines the measures which could close the competitiveness gap between the fossil fuels and alternative fuels with zero emissions in the maritime transport sector. 'The cost of zero-emission fuels - explained the administrator delegate of Maersk Tankers, Christian M. Ingerslev, illustrating a of the measures proposed in the report - must be considerably reduced in order to close the competitiveness gap with the fossil fuels. To bridge this gap we must exploit the potential of public-private collaboration. What enterprises - clarified Ingerslev - we must develop and implement large-scale solutions, while policymakers must implement the regulations that are likely to render commercially zero-emission maritime transport as a solution better by 2030."

According to the report, drafted by UMAS on behalf of Getting to Zero Coalition, there are many potential policy options for closing this competitiveness gap and the best way to supporting the shipping industry in the transition to the the future with zero emissions would consist of adopting a measures combining the strengths of different policy options while mitigating its weaknesses. In particular, a package could consist of a market-based measure that collects economic resources to be used fairly to support the transition and to a direct prescriptive type that sends an unequivocal signal to the market about the actual transition towards alternative sustainable fuels. This - he observes the report - could be usefully complemented by initiatives on voluntary basis, information programmes and policy measures national and regional to stimulate investment, encourage knowledge sharing and support the capacity building.

The report estimates, among other things, the carbon price required in case of complete decarbonization of shipping within 2050 or decarbonisation of 50% of the sector within the same date and it is specified that there is not a big difference in the average price level between the two scenarios: for the complete decarbonisation of maritime transport, in fact, would be required an average carbon price of just under 200 dollars, while in the scenario of a 50% reduction the price would be only about 10% lower. "The report - has taken over the CEO of the Global Maritime Forum, Kasper Søgaard - shows that the introduction of a carbon price relatively low in the 2020s, to be gradually increased to about 200 dollars, will allow to decarbonize completely shipping and creating an industry powered exclusively by sources of zero net energy consumption by 2050. This level of carbon price - noted Søgaard - is in in line with what is estimated, for example, by the International Energy Agency as needed in all sectors to achieve objectives of the Paris Agreement, to highlight that maritime transport is not a unique case.'

Recalling that "this year will be fundamental for the IMO decisions on climate policy', Alison Shaw, associate researcher at UCL and co-author of the report, she concluded by pointing out that the report "shows that it does not exist a single perfect policy and a successful transition it will probably depend on a mix of policies capable of address different aspects of the transition. Taxation on maritime sector of market-based measures - he specified - is a relatively unexplored issue. So, first the managers will be able to overcome this challenge together, the better it will be for the transition, for the sector and for the environment'.