The European Union (EU) plans to reduce carbon emissions, which threatens to increase the CO2 produced by the oil industry, warned the head of the world’s second largest container.
Soren Toft, CEO of the Mediterranean Delivery Company, says the Financial Times’ EU measures, which are still under discussion, will have the opposite effect of their intentions until low-carbon fuels are ready.
This is because operators will have to slow down their vessels to meet the demand for reductions, creating the need to maintain the service level of more new vessels.
“It is very clear to us that what they are proposing in the absence of carbon-neutral fuels will add more power, more containers, all will have to be financed, built in Asia, which will create more emissions,” he said.
However, Tristan Smith of the UCL Energy Institute said the idea that EU carbon footprint would increase industrial emissions was “unreliable”.
The ship’s emissions from bunker fuel are much higher than those produced in production; other economic factors, such as the price of oil գ freight prices, determine the speed of the ship.
Comments from MSC that it intends to bypass Maersk as the world’s largest container group in terms of the largest order book of new vessels are entering a critical phase as the EU prepares proposals to review the carbon market next month.
It is noteworthy that Toft, which joined MSC from Maersk in December, has spoken out, as the group has rarely filed a lawsuit since its founding in 1970 by Ganluigi Aponte.
A big issue for the shipping industry is the range of trips the EU will make to its updated emissions trading system as policymakers try to reduce CO2 emissions by 55% by 2030.
Delivery, which produces 2.4 percent of the world’s CO2 emissions, is difficult to hydrocarbonize because low-carbon fuels such as green ammonia or hydrogen are not widely available.
European Commissioner Dirderik Samsom, who heads the EU Green Deal Team, said the emissions trading system would be the main mechanism used to help reduce CO2 emissions in the freight sector.
Carbon pricing, allowing emitters to buy permits to meet CO2 targets, ‘will be a real boost’ [maritime] “Industry has to hydrocarbonize their fuel, hydrocarbonize their entire operation,” Samsom told FT’s Future of Europe conference last week.
He added that the industry could meet new challenges by using different types of ships and different speeds to reduce its carbon footprint.
Toft joins MSC: Industry’s focus on both fronts. Its response to climate change և efforts to restore service reliability that crashed during the epidemic.
MSC ships lost 10,000 days of navigation in congested ports this year, up a third from last year.
“We strive to provide a service that we believe our customers are entitled to,” Toft said.
But he insisted that disruptions in the current global supply chain, which he said were likely to continue next year, “were not caused by carriers”.
Another concern for the industry is the possibility of a patchwork of regional emissions duties. “The EU will look at that approach, and then until we know it, we will have 10 different approaches to deal with,” Toft said.
But some small operators, such as Torvald Klaveness and Maersk Tankers, say the industry should accept EU emissions legislation to try to influence a regional initiative rather than prevent it.