MEPC80: Funds Need Certainty to Move on Green Fuels

Madadh MacLaine: We need certainty.  Image Credit / S&B.

Trillions of dollars primed to invest in shipping's energy transition are in danger of evaporating unless they can see certainty, ZESTAs' founder and secretary general Madadh MacLaine told Ship & Bunker.

ZESTA's mission is to promote the adoption of zero-emission technology by shipping companies and the best way to do that is provide investors with a clear pathway.

MacLaine's intervention at MEPC80 on July 4 said the same. If shipping wants to trigger funds to flow into the sector, the signposts need to be clear. MacLaine's preference is for a 37% cut in shipping's GHG emissions by 2030 with net zero in place by 2050.

"Like that, it's clear," MacLaine said. "If the threshold is lower," she added, "I'll take it, as long as it's not vague. Industry needs a hard number to trigger investment."

The International Maritime Organisation's policy on the reduction of greenhouse gas emissions from shipping is due to be adopted by MEPC80 this week. While much of the text has been agreed, some of the crucial numbers have yet to be approved.

The date at which net-zero emissions from shipping could be achieved in the draft document is currently in triplicate.

GHG emissions from international shipping should reach net-zero GHG emissions [by 2050 at the latest] [by or around mid-century, mindful of different national circumstances] [by or around 2050, taking into account different national circumstances]," the draft text states where square brackets indicate words yet to be agreed.

From where MacLaine sits, 'around 2050' sends the wrong message.

It's the same with fuel, she said. All sectors need sustainable fuels but the infrastructural investment won't happen. Green investors are looking for impact and ways to make money, but they need to know what they are investing in.

"If you can't put it in a spreadsheet, it's not a number," MacLaine said.