A coalition of leading shipping companies released an environmental 'Case for Action’, yesterday, in hopes of guiding the rest of the industry towards increasingly eco-friendly practices over the next 30 years.
The
Sustainable Shipping Initiative (SSI), composed of the industry’s international leaders, warned the
maritime industry that without taking appropriate action towards green practices, it could face dire consequences.
Emissions from shipping now total over a billion tonnes a year – the equivalent of Germany’s carbon footprint – but the industry’s environmental performance has been under the radar compared to, say,
aviation.
The 'Case for Action’, however, warns of approaching dangers and longer-term challenges and seeks to elicit debate concerning the best ways to respond to these. In case of inaction on sustainability, it says
shipping could face a similar outlook to that of US automotive industry, which faced near collapse following the global recession. As a partial result of failing to adapt to rising oil prices, the US industry was only saved by a $25 billion (£15.5 billion) government bailout.
"By creating a shared vision for sustainable growth, we can plot a new ambitious course. A course where shipping is viewed as a key enabler of responsible and sustainable economic development," said Soren Stig Nielsen, head of Sustainability, Maersk Line, one of the world’s largest shipping companies and a member of the SSI.
Challenges and risks
The Case for Action identifies three key challenges facing the shipping industry: navigating changing economic contexts, the public’s increased scrutiny and higher expectations of the sector, and the future of energy and climate change.
By not adjusting to accommodate more eco-friendly actions, the report warns that the shipping industry risks facing detrimental consequences.
Based on the challenges presented in the report, these could include ending up with maritime
governance and regulation that does not fit trade patterns, more difficult and expensive recruitment of workers, exclusion from markets, poor standings with the public, and becoming obselete as a result of increasing price and decreasing supplies of fuel.
Navigating a changing economic context
The report said that, as there is no guarantee of the growth of free trade continuing into the future, it is paramount to the success of the field to take measures to prepare for potential changes. Suggesting that there is a possibility of significant alterations in the growth trends and types of goods transported by the shipping industry, the Case for Action said a group of leaders supporting the International Maritime Organisation’s development of progressive, comprehensive regulation could help to alleviate risks the industry may face and allow for better directed planning and investing.
Increased scrutiny, higher expectations
Taking into account the increasingly informed global community, the Case for Action also stressed the importance of pleasing the growing number of environmentally concerned consumers with transparency and better standards for shipping. The report said customers are likely to not only be interested in price, security and speed, but also in factors such as working conditions, emissions and efficiency. Companies that perform better in these areas are likely to be favoured by customers and suppliers, the report said.
The Future of energy and climate change
The report said that, considering the rising and mercurial nature of oil prices, shipping companies that invest in
energy efficiency and the transition to new fuels can gain a competitive advantage. Additionally, climate change should be a factor in companies’ investing in eco-friendly and efficient energy, according to the report.
SSI members include ship owners, shipbuidlers, banks and insurers, as well as green groups Forum for the Future and WWF.
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