Major CEOs of global shipping companies taking a proactive stance on addressing the maritime industry’s greenhouse gas emissions during COP28. The joint statement and the push for an end date for fossil-only powered newbuild ships reflect a growing recognition of the need for sustainability in the shipping sector.

Soren Toft’s emphasis on the importance of a tangible supply of alternative fuels and globally recognized pricing for greenhouse gas emissions highlights the practical challenges that need to be addressed for a successful transition to greener practices. The proposal for a “pricing mechanism” to support the competitiveness of green fuels during the transitional period is a notable suggestion, as economic incentives often play a crucial role in driving industry-wide changes.

The commitment of major carriers, such as Maersk and CMA CGM, to invest in and adopt greener technologies is encouraging. Maersk’s goal of achieving net-zero greenhouse gas emissions by 2040 and its investment in vessels running on green methanol showcase a dedication to environmental responsibility. Similarly, CMA CGM’s substantial investment in decarbonizing its fleet, including the shift from methanol to LNG, demonstrates a commitment to exploring various sustainable options.

The industry’s acknowledgment of the challenges ahead, particularly with the downturn in container rates and the anticipated difficulties in 2024, underscores the complex nature of transitioning to more sustainable practices. However, the collective efforts and commitments from industry leaders, coupled with regulatory support from organizations like the International Maritime Organization (IMO), are crucial for driving positive change and reducing the carbon footprint of the shipping industry.