Political Pressure Means Shipping Must Act on Reducing Emissions Regardless of the Actual Environmental Benefits: Ship Efficiency Expert

Ship efficiency expert Nikos Petrakakos. Image Credit: Nikos Petrakakos

The Shipping industry must act on reducing its emissions even if the environmental benefits are zero, ship efficiency expert Nikos Petrakakos has told Ship & Bunker.

The comments come as the IMO comes under increasing pressure to take measures addressing Shipping's emissions as part of implied obligations under the COP 21 climate agreement, and the efficacy of such measures are also the subject of ongoing debate.

"Shipping is already seen by the public as a dirty industry and only makes it into the news when environmental disaster strikes, or with images of black smoke from funnels. We are terrible at lobbying as an industry, and it's usually only when it's already too late to get what we want. Just imagine how insufficient action by the IMO would impact the public's opinion of this industry. In the end, the IMO would lose all credibility and you would instead have the EU and other countries unilaterally imposing regulations (which the EU has already threatened)," Petrakakos told Ship & Bunker.

"As environmental awareness continues to grow around the globe and more precisely within banks and for investors in general, a failure by the IMO to act will increasingly hurt shipping companies' ability to secure the funding they need for growth. Then again, for some this could be a silver lining, as it would simply leave an attractive niche for owners who outperform the industry in terms of environmental impact.

"The general point is that our industry's impact is larger than some tend to assume, and we need to act regardless, for the sake of the continued profitability of the industry, even if one totally ignores the environmental impact aspects."

Petrakakos is not the first to suggest such major decisions may be swayed more by politics than practicality.

Earlier this year, in its 2017 Annual Review, the International Chamber of Shipping (ICS) said IMO's decision to introduce a 0.50% global sulfur cap on marine fuel in 2020 was "largely a political one."

"Although the supply of compliant fuel was projected by the IMO study to be tight – with some sections of the oil industry, amongst others, questioning the conclusion that adequate supplies of fuel will be available – IMO Member States nevertheless decided that it would be politically unacceptable to postpone implementation," wrote ICS.

In a world where sentiment seems increasingly driven by globally reaching social media and instant communication, a growing need for companies to act in accordance with public opinion is perhaps not surprising. 

However, if it really is the case that public opinion is a key driver for change, Shipping and Bunker industry CEOs will no doubt be wondering when, and how, that opinion might change.