We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • INDUSTRY PRESS ROOM
  • SUBMISSIONS
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • CSCMP EDGE 2022 Startup Alley
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • CSCMP EDGE 2022 Startup Alley
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
Home » UN plan would raise $5 billion from containership companies to stop emissions

UN plan would raise $5 billion from containership companies to stop emissions

New technology is needed to launch zero-carbon emission cargo ships within a decade, sponsor countries say.

March 15, 2021
Ben Ames
No Comments

A coalition of countries is pitching a plan to the United Nations’ International Maritime Organization (IMO) to require global shipping companies to raise funds for a “moon-shot” effort to deploy widescale fleets of zero-carbon emission cargo ships within a decade.

Announced March 10, the effort would raise $5 billion through “mandatory contributions” by containership companies in a push to decarbonize the maritime transport sector. The plan’s backers say that clean emission technology does not yet exist for large ocean-going ships, so any decarbonization effort can only take place with a significant acceleration of research and development.

As with previous emissions reduction efforts, the investment would likely boost delivery rates for shippers in the short term, as carriers pass on the increased cost. But supporters argue that the investment is necessary to mitigate the longer-term impacts of climate change, such as rising sea levels and volatile storms poised to swamp the world’s cargo ports.

The new approach would enable global maritime cargo carriers to reduce greenhouse gases enough to meet the IMO’s 2050 50% reduction and zero-carbon emissions goals. 

It would also follow the current IMO 2020 policy, which limits sulfur emissions from oceangoing ships by requiring vessels to burn fuel with a sulfur content of 0.5% or less, down from the current 3.5%, or else to use exhaust-cleaning “scrubbers" or convert to liquefied natural gas.

The IMO 2020 plan is forecast to reduce acid rain and to avoid more than half a million annual premature deaths worldwide from conditions like strokes, asthma, cancer, and cardiovascular diseases. But industry giants like A.P. Møller-Maersk (Maersk) and Mediterranean Shipping Co. (MSC) have said they will need to pass on the costs of compliance to their customers. The impact could also reduce the growth rate of world container port volumes over a five-year period, according to a report from Drewry Shipping Consultants.

Despite those costs, the effort is necessary to slow the momentum of accelerating global climate change, according to the World Shipping Council, one of the backers of the new plan. “The sponsoring nations have done a very thorough job, mapping out in detail the framework required to get the R&D program up and running as quickly as possible. We are very pleased to see Denmark’s support, as one of the leading maritime nations. The IMRB is a crucial step on the path to decarbonize shipping, and we have no time to lose if we are to meet the UN climate goals,” WSC CEO John Butler said in a release.

The proposal was first submitted by a collection of shipping nations including Georgia, Greece, Japan, Liberia, Malta, Nigeria, Singapore, and Switzerland. It has since added Denmark and Palau. It is also co-sponsored by a collection of global shipowners’ associations: BIMCO, Cruise Lines International Association, IMCA, INTERCARGO, INTERFERRY, International Chamber of Shipping, INTERTANKO, IPTA, and the WSC.

Under terms of the plan, the money would go into an “IMO Maritime Research Fund” to support an International Maritime Research and Development Board (IMRB) to commission collaborative programs for research and development into zero-carbon technologies specifically tailored for maritime applications, including the development of working prototypes. It will also assist carbon dioxide-reduction projects in developing countries, including Pacific island nations which are at high risk of flooding damage from rising sea levels due to their low-lying terrain.

The next step for the plan will be to seek additional sponsors at the next meeting of the IMO Marine Environment Protection Committee in June, and then to lobby for full approval at an IMO meeting in London in November, which will coincide with the next UN Climate Conference (COP 26) in Glasgow.

"We are very pleased to see Denmark’s support, as one of the leading maritime nations. The IMRB is a crucial step on the path to decarbonise shipping, and we have no time to lose if we are to meet the UN climate goals,” says John Butler, CEO of WSC.
Read: https://t.co/DXXnFFZRSc pic.twitter.com/gxMxi0kXhT

— World Shipping Council (@WSC_shipping) March 15, 2021
Global Ocean
KEYWORDS International Maritime Organization World Shipping Council
  • Related Articles

    USPS plan would slow package delivery for long-distance hauls

    Report urges apparel companies to stop chasing low-cost-country sourcing

    Global WMS market to reach $5 billion

Benames
Ben Ames has spent 20 years as a journalist since starting out as a daily newspaper reporter in Pennsylvania in 1995. From 1999 forward, he has focused on business and technology reporting for a number of trade journals, beginning when he joined Design News and Modern Materials Handling magazines. Ames is author of the trail guide "Hiking Massachusetts" and is a graduate of the Columbia School of Journalism.

Recent Articles by Ben Ames

Shipping groups back bipartisan trucking overhaul bill

Walmart boosts investment in GoLocal delivery-as-a-service platform

Port authority group calls for stricter caps on maritime carbon emissions

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • Forecasts call for freight rate slumps in 2023

  • Projected U.S. recession in early 2023 will soften freight market

  • Inflation drops again as interest rate hikes hit home, NRF says

  • How to avoid the next crisis: A new approach to supply chain agility

  • Five levers to build a resilient supply chain

Featured Video

20221107korber large vs

Enhancing Customer Experience with Your Supply Chain Strategy

Viewer Contributed
With the rise of e-commerce, many businesses have had to transform their warehouses to handle online orders in addition to regularly scheduled inventory shipments. This means warehouses need more information than ever before to ensure they can meet customers' needs. As a result, companies need to select warehouse...

FEATURED WHITE PAPERS

  • Guide to Pallet Rack Safety

  • 3PLs: Complete Orders Faster with Flexible Automation

  • A shipper's guide to navigating post-pandemic holiday freight

  • THE NEW WAY TO WAREHOUSE: 4 Innovations in Automation & Robotics to Boost Warehouse Productivity

View More

Subscribe to Supply Chain Quarterly

Get Your Subscription
  • SUBSCRIBE
  • E-NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2023. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing