The shipping industry’s trillion-dollar decarbonisation bill

March 10, 2020

The UN’s shipping body has put the pressure on, requiring the shipping sector to halve greenhouse gas emissions by 2050. 

Obviously, this is no small feat. 

In fact, estimates show that to achieve such a goal, the sector will need to invest at least a trillion in capital investment. 

That’s a one with twelve zeros at the end, in case you were wondering. Crazy stuff. 

Reducing emissions is important, of course. At MYC Logistics, we’re all about doing everything we can to look after our planet. 

After all, Shipping accounts for 2-3% of global greenhouse gas emissions. The scary part, though, is that—if the strategies don’t get put in place to reduce emissions—the figure could go up. 

The 2014 UN study predicts growth in trade could increase carbon footprint 50-250% by 2050, blowing chances of limiting global warming to well below 2C, as targeted in the Paris Agreement.

So yes, change is needed. 

But a trillion-dollars is obviously going to put a dent in the industry’s pockets—a dent that has to be filled by increasing shipping prices.  

Companies have come out saying prices won’t increase too much. Alternatively, these companies will be looking for ways to keep fuel costs down by investing in more progressive technologies.  

“Shipping will need to fundamentally change to meet the IMO’s greenhouse gas emission reduction target and this includes not only ramping up investment in new technologies, alternative fuels and low emission propulsion systems but also changing how companies operate and manage their fleets,” Greg Atkinson, chief technology officer at Japan’s Eco Marine Power, said. 

We sure hope so. 

Time will tell. But one things for certain. Prices across the board will increase.  

But we will continue to keep you in the loop,  so you can stay one step ahead of the pack and plan accordingly. 

Talking about planning ahead—so your shipping is on-time, every time—MYC Logistics is quite good at helping you do that. If you have any further questions about Industry changes or freight forwarding solutions, don’t hesitate to get in touch.

btn hover btn hover btn hover btn hover gplus gplus linkedin linkedin minus linkedin linkedin linkedin linkedin linkedin linkedin linkedin linkedin linkedin linkedin linkedin linkedin