Opinion | Asia is lagging behind Europe in the transition to green shipping
- While Asian companies account for half of global vessel tonnage, European firms have made more progress in defining decarbonisation goals
- Yet, shipping decarbonisation is a monumental task that will require international cooperation, for no economy should be left behind
Trade can be a powerful tool to combat the climate crisis, diffusing much-needed green goods and technologies around the world. But there can be no green trade without green shipping.
Container ships carry nearly 11 billion tonnes of goods a year – accounting for more than 80 per cent of global trade. But since 2000, global carbon dioxide emissions from the maritime industry have also increased by 42 per cent. East and Southeast Asia have contributed the most to this, accounting for 43 per cent of the sector’s total carbon emissions today.
The shipping industry is preparing for the (melting) iceberg ahead: the International Maritime Organization recently set a more ambitious target to reduce greenhouse gas emissions to net zero by around 2050. At the same time, 13 of the world’s 30 largest shipping companies have committed to net zero between 2040 and 2060. But not all companies are going full speed ahead.
Though Asian companies account for half of global vessel tonnage, European companies have made more progress in defining decarbonisation goals and establishing fleet-renewal projects. These companies are likely to be best-positioned to meet the rising demand for clean transport, and therefore to have more carbon pricing power over those that are lagging behind. But climate change is a global crisis, and every company needs to get on board.
After all, decarbonising the shipping industry is a race against time that requires massive investment, whether it is buying new vessels equipped with cutting-edge technologies and next-generation engines, installing scrubbers or retrofitting engines.