Shipping: The Beating Heart At The Centre Of Global Decarbonisation

Shipping has a role to play in all climate dialogues given the role it plays in connecting communities, society, industry and nature.

That’s according to a panel discussion at the UN’s COP28 session on the Voyage to Net Zero, hosted by the Maritime Port Authority of Singapore, where speakers outlined their vision to accelerate decarbonisation through collaboration, risk-sharing and synergies.

There has been significant momentum, as well as examples of shipping transformation, from governments – like Singapore – and the private sector, said Katharine Palmer, maritime lead at The Climate Change High-Level Champions. 

“We have witnessed a dynamic synergy between government policy and private sector innovation,” she said. “Growing appetite for zero carbon turns into concrete demands on the order book for zero-emission vessels, which in turn sends the right signals to zero-emission fuel suppliers, that we really, truly are a sector that is ready to transition.”

Companies across the maritime value chain are setting robust targets and lowering emissions, the delegates said, agreeing that credible action is taking place. More needs to be done to meet 2030-2040 milestones, with COP28 giving an opportunity to discuss how the industry can work more effectively towards these targets.

Speakers discussed the challenges of scaling up new fuels, shipyard capacity and recycling infrastructure, as well as the need for effective pricing of fuels. 

Abhishek Chawla, GM of Operations & Procurement at Pacific International Lines (PIL), a Singapore-based shipping company, told delegates about their partnership with DP World to develop green solutions. 

PIL ships will use green fuels like biofuel at DP World terminals; DP World will use renewable energy-powered equipment to handle PIL shipments; and the companies will monitor how well emissions can be reduced.

The deal is a concrete step toward net-zero emissions by 2050, he said and by leveraging each other's strengths, they can accelerate progress on reducing greenhouse gases.

Green shipping corridors were also discussed by the panel, with the example of the Singapore-Los Angeles green shipping corridor, which promotes adoption of new technologies, clean fuels, and knowledge sharing.

Ahila Karan from The Lloyd's Register Maritime Decarbonisation Hub talked about initiatives that can accelerate clean marine fuel uptake. There’s a need for regional coordination between governments and across maritime value chains to drive route-based action plans.

She mentioned the Singapore Green Corridor Cluster initiative that aggregates demand to create scale and drive investment. 

Overall partnerships are critical to bring together key decision makers and accelerate shipping's transition, the panel concluded.