The international shipping industry has long been caught up in a chicken-and-egg situation. No investment in vessels that can sail on carbon-neutral fuels has meant no investment in the development of carbon-neutral fuels and vice versa. With this vicious cycle broken and new, carbon-neutral vessels expected to hit the waters starting in 2023, the market for green shipping fuels is opening up. Beginning in 2024, a substantial global price on carbon emissions to reduce the current cost gap between green and oil based fuels. A more punitive carbon price would go a long way in driving behavior change in the shipping industry. The European Union is currently working on its own regional measures, but the IMO should set an international price to create a level playing field, $150 per ton of greenhouse gas emissions is a good target and would generate enough revenue to help fund efforts to mature zero-carbon seafaring technology; partly cover operating expenditure for ship owners using renewable fuels; and help support climate-mitigation projects in developing countries, whether they are shipping-related or not. Climate change affects us all, but it affects some areas of the world disproportionately and we must use the resources we have to help those who are the most impacted. The foundation for all of this has been laid, but starting in 2022, the shipping industry needs to move faster, act smarter and continue to make bold decisions. This is critical not to be stuck with stranded assets.” Increased customer demand for green transport has helped push Company’s and ship owners to invest in in carbon-neutral vessels and industry expectations are for this to not only continue in 2022, but to accelerate. Shipping companies are waking up to the fact that progress is needed now and new solutions must be implemented on all aspects of the business. Much of the pressure to decarbonise shipping is coming from retailers and manufacturers such as Ikea, Amazon and Unilever who are demanding to use only zero-emission vessels
