A united front in the shipping industry! 🌍 Mediterranean Shipping Company (MSC), Maersk, COSCO Shipping, Evergreen, Hapag-Lloyd, ONE, Yang Ming, Hyundai Merchant Marine, and more, join forces to address a pivotal initiative for the future.
🌿 Introducing the “Green Balance Mechanism” proposed by the World Shipping Council (WSC) to propel the maritime sector towards achieving net-zero emissions by 2050. 🚀 The WSC plans to discuss this groundbreaking solution at the 81st session of the International Maritime Organization’s (IMO) Marine Environment Protection Committee (MEPC) in March this year.
💡 WSC sheds light on the current cost disparity between green fuels and traditional fossil fuels, estimating that green alternatives are approximately four times more expensive. Recognizing the declining demand for traditional fuels, the WSC introduces the “Green Balance Mechanism” to bridge this cost gap.
🌐 The proposal has garnered support from a formidable coalition of 13 leading shipping companies, including MSC, Maersk, COSCO Shipping, Evergreen, Hapag-Lloyd, ONE, Yang Ming, Hyundai Merchant Marine, Pacific International Lines, X-Press Feeders, Wallenius Wilhelmsen, Nippon Yusen Kaisha, and Swire Shipping.
🔹 MSC CEO Soren Toft: “MSC has set a 2050 net-zero emissions goal and ordered 100 dual-fuel liquefied natural gas (LNG) powered container ships. However, commitment from energy producers is crucial for alternative fuel supply to meet emission targets. The ‘Green Balance Mechanism’ by WSC can bridge the price gap between fossil and green fuels, encouraging energy producers to expand production.”
🔹 Maersk CEO Vincent Clerc: “To achieve the 2050 net-zero emission target, a transition mechanism from fossil to green fuels is essential. We urge IMO member states to take decisive action, rewarding early adopters of green fuels and compensating truly green vessels based on emission reductions, vital for accelerating the retirement of fossil fuel ships.”
🔹 CMA CGM Chairman and CEO Rodolphe Saadé: “Decarbonizing shipping requires efforts from all stakeholders. CMA CGM has invested over $15 billion in fleet decarbonization, aiming to have 120 alternative fuel container ships by 2028. Collective action is now needed to foster a fair competitive environment.”
🔹 Hapag-Lloyd CEO Rolf Habben Jansen: “The ‘Green Balance Mechanism’ aligns with our sustainable development goals, a crucial step towards sustainable shipping. It promotes green fuel production, minimizes economic burden on stakeholders, and ensures a fair competitive environment, key for the successful energy transition in the shipping industry.”
🔹 ONE (One Network Express) CEO Jeremy Nixon: “A clear and predictable regulatory approach is needed to accelerate green fuel investment and ensure cost transparency for achieving decarbonization goals.”
🔹 Evergreen Line General Manager Wu Guanghui: “Collective action is paramount for industry decarbonization. The shipping industry must adopt new greenhouse gas pricing methods to drive demand for clean fuels. Government, suppliers, and customer support are crucial for faster decarbonization.”
🔹 HMM CEO Kyung Bae Kim: “HMM shares a common vision for sustainable development in the global shipping industry. We believe WSC’s ‘Green Balance Mechanism’ can accelerate the industry’s decarbonization process.”
🔹 OOCL Chief Operating Officer Kenny Ye shares, “In addition to investing in green vessels, OOCL actively explores and develops cleaner alternative energy sources. We are fully committed to supporting all efforts that propel the industry towards a green future.”
CEOs of Pacific International Lines, X-Press Feeders, Wallenius Wilhelmsen, Nippon Yusen Kaisha, and Swire Shipping also express their support for the ‘Green Balance Mechanism.’
John Butler, President and CEO of WSC, concludes, “The transition from fossil fuels to green fuels takes time and significant investment from all parties. Ensuring the economic feasibility of meeting green fuel demands at a lower cost is our shared responsibility.”
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