NBAS, in partnership with Maritime and Port Authority Singapore, the Royal Norwegian Embassy in Singapore and Innovation Norway, hosted a special insights panel Towards Zero Emissions. This article is written by Lasse Krisoffersen, CEO Torvald Klaveness, one of our panelists at the event.
Decarbonization is the task of our generation and we have no time to lose. Shipping connects the world and is the bloodstream of global trade. For the world to decarbonize, shipping needs to decarbonize. Our society demands change and the window of opportunity for the industry to chart our own future is now. This future needs to be aligned with the Paris agreement and target net zero latest by 2050.
But we have a big problem.
The shipping market will not solve it by itself, carbon-based fuels are simply too competitive. The good news is that it will hardly cost the society and the consumer anything to decarbonize. For instance, transport of wheat to Europe on a zero emission Combination Carrier by Klaveness will only increase the price of bread with half a cent. Hence, we need to create a bridge between the society’s ability and willingness to pay and the significant competitiveness gap on a vessel and voyage level. The only bridge that can close this gap is a real price on carbon.
The ideal solution is a global levvy regulated by the IMO, structured into a fund returning the proceeds to the industry and those affected. We need to think of this as both a subsidy for zero emission fuels and vessels, and a means to price out fossil fuels. We need to get out of the chicken and the egg situation where fuels are not produced as there are no consumers, and vessels are not built because there is no fuel.
A global solution is needed,
but given the urgency, we must accept, welcome and even encourage national and regional regulations, such as those under design in EU, that that puts a meaningful price on ships’ emission and are compatible with future global regulations through the IMO.
To reach net zero in 2050, zero-emissions vessels must become the only competitive choice, at the latest by 2030. Over the next 30 years, the whole world fleet will be replaced. If we incentivize the market now and put in place the much-needed regulations latest by 2025, we will reach zero by 2050.
NBAS is collaborating with upcoming artists in Singapore and Norway to showcase their work, while we get a creative take on our graphic profile. In April 2021, NBAS features Doodle twins. Learn more here and purchase their art here.