England (Commonwealth Union)_ The due day is approaching. The International Maritime Organization (IMO) established lofty goals for global shipping, including a goal to cut carbon emissions in half from 2008 levels and completely eradicate them by the year 2050. However, there is still no discernible path in sight. Can we truly accomplish this?
Bo Cerup-Simonsen, Chief Executive Officer of the Maersk Mc-Kinney Meller Center for Zero Carbon Shipping, spoke with Jacqueline Woo about why getting to zero is potentially the biggest challenge the industry has ever faced, even though it is not insurmountable, as well as his vision for the industry’s future.
As per Cerup-Simonsen, with the pressing need to address the problem and the haziness of the future directions, strong leaders are needed to lead the way. And fortunately, both public and private sector leaders are taking action right away. Some shippers are investing in ships that can run on green fuels, equipment manufacturers are developing engines and cleaning systems, and energy companies are investing to produce the green fuels. Some cargo owners are also demanding green transportation. This leadership will pave the way, motivating and enlightening others in the sector to act, and speeding up the implementation of standards and regulations.
For Mr. Cerup-Simonsen, there is widespread agreement that there is a climate catastrophe, but most people are not yet willing to take action to address it. Many people believe they don’t really have the flexibility to start acting on this in their business.
“You need to have humility toward those that have extended balance sheets and long-term investments because there is a lot of ambiguity in front of us. For instance, their pension funds are bound to certain assets with predetermined guarantees. However, continuing as if we don’t need to change is also risky since financial institutions are increasingly demanding that investments be focused on decarbonization,” he further stated.
