LONDON: The negotiations on the first global climate agreement for an entire industry have just been kicked into a corner in London. Danish Shipping calls it "a big disappointment".
- That's not what we came for. We came to finally close a crucial climate agreement for international shipping. We in Denmark have been working hard for that for a long time, so it's a big disappointment.
That's the clear conclusion from Danish Shipping's CEO Anne H. Steffensen following dramatic events in the UN's International Maritime Organization (IMO).
The member states have gathered in London this week to finally adopt the Net Zero Framework agreement, which fell into place back in April. The agreement is to bring international shipping's emissions towards zero by 2050. And until very recently, that agreement stood firm. But after two days of delays in the negotiation room, the IMO has chosen to postpone the vote on the agreement.
- A lot has happened in the world since 2023, when the framework for the strategy was adopted. Unfortunately, this means that there have been all sorts of other agendas in the negotiation room than climate. Geopolitical tensions and a new world order have made their way in. Also in the IMO, says Anne H. Steffensen.
The agreement would have had a positive effect on the price difference between fossil fuels and alternative fuels, which are essential for the transition of shipping. Today, alternative fuels are three to four times more expensive than fossil fuels, and production is at a very low level in Europe, among other places.
- Shipping continues to badly need global regulation and thus certainty for the plan for the green transition. This is necessary to support investments in new green ships and the green fuels that we will sail on. Unfortunately, there was no political will in the room to finish the work this week. But where there is life, there is hope. The work for the green transition of shipping continues, says Anne H. Steffensen.
The agreement includes, among other things, a requirement for a gradual reduction in the greenhouse gas intensity of the fuel the ships use. Ships that emit more than the requirements allow must pay, while the most energy-efficient ships can earn and trade excess units and receive rewards for using green fuels. It is becoming more expensive to emit greenhouse gases, and it is worthwhile to reduce them.
Text, graphics, images, sound, and other content on this website are protected under copyright law. DK Medier reserves all rights to the content, including the right to exploit the content for the purpose of text and data mining, cf. Section 11b of the Copyright Act and Article 4 of the DSM Directive.
Customers with IP agreements/major customer agreements may only share Danish Offshore Industry articles internally for the purpose of handling specific cases. Sharing in connection with specific cases refers to journaling, archiving, or similar uses.
Customers with a personal subscription/login may not share Danish Offshore Industry articles with individuals who do not themselves have a personal subscription to Danish Offshore Industry.
Any deviation from the above requires written consent from DK Medier.
