Trafigura Makes Case for Global Carbon Price for Shipping
Focus: global south. File Image / Pixabay.
Commodity trader Trafigura has made the case for a carbon price for shipping in a new report which argues that unrealised sources of green energy, particularly in the southern hemisphere, will remain untapped without it.
The report called Charting a course to a greener future for shipping: low-emission fuel supply and the opportunities for the Global South focuses on the role hydrogen-based fuel could play in shipping's energy transition by linking it to the production of green ammonia and green methanol in southern hemisphere states.
The research points to 4,000 exajoules per year of competitively priced green hydrogen that could come out of the global south against projected annual shipping demand of 20 to 40 exajoules.
IMO should agree and implement demanding science-based decarbonisation targets in its revised GHG Strategy.
But this will only happen "if the shipping industry can agree on ambitious decarbonisation targets and, crucially, implement a global price on carbon for marine fuels", said report co-author and head of energy transition research at Trafigura Margaux Moore.
The key to action remains with the International Maritime Organisation.
According to the report, the IMO should agree and implement "demanding science-based decarbonisation targets in its revised GHG Strategy".
By doing this, the IMO "can accelerate the development of low- and zero-emission fuels and establish global fuel standards, which together will attract the investment needed to overhaul the infrastructure of the global shipping industry and retrofit, or build, new ships at scale".