A universal, global carbon tax on shipping is imminent, with alternative blue fuels utilizing carbon capture emerging as a crucial element in the sea’s energy transition,” conveyed Christopher J. Wiernicki, ABS Chairman and CEO, at the CERAWeek energy conference.
“We need to recognize that there is an intermediate step in the energy transition,” he said. “Last year, the conversations focused on transitioning from oil to a green fuel economy. Today, we see the emergence of the blue economy addressing carbon management, capture, pricing, and credits as a crucial stepping-stone. The EU has acknowledged this with Fuel EU Maritime, and I believe a universal carbon tax will emerge as the IMO and EU synchronize.”
“Effective regulation under a global framework is key for success in the sea’s energy transition,” he stated.
“Commercial gravity alone won’t reach Net Zero by 2050. We need ambitious measures, like Fuel EU Maritime and a carbon tax. A global industry requires a global approach; IMO regulations are fundamental. IMO offers an investable roadmap, shifting from tank to wake to well to wake, altering fuel choices’ lifecycle emissions. Though challenged by regional lawmakers, IMO is central.”
Shipping’s transition is just beginning; much is undecided in the decade ahead.
“The next 10 years will determine desirability vs doability,” said Wiernicki. “It’s too early to declare fuel winners. The technology timeline will be incremental, driven by safety, fuel availability, infrastructure scalability, electrolyzer, and carbon capture costs. These, along with electrification, battery energy storage, green hydrogen, and nuclear energy, hold transformational potential.”
About ABS – American Bureau of Shipping
Since its inception in 1862, ABS has remained steadfast in its mission to establish and uphold the highest standards of safety and excellence as a premier ship classification organization globally. With a rich history rooted in maritime expertise, ABS continuously endeavors to pioneer innovative solutions for the industries it serves, consistently positioning itself at the forefront of marine and offshore innovation.
In an industry marked by perpetual evolution, ABS operates in close collaboration with its partners to address the most pressing technical, operational, and regulatory challenges. By doing so, ABS ensures that the marine and offshore industries can navigate their operations safely, securely, and responsibly in an ever-changing landscape.
Comprising a diverse team of surveyors, engineers, researchers, and regulatory specialists, ABS operates across more than 200 offices spanning 70 countries worldwide. With a shared commitment to enhancing global safety standards and fostering innovation, ABS employees bring unparalleled expertise and dedication to their work, embodying the organization’s core values.
Driven by a passion for making the world a safer place, ABS is dedicated to delivering practical and forward-thinking solutions that advance the marine and offshore industries. Through its unwavering dedication and collaborative spirit, ABS stands poised to assist and propel these vital industries forward into a safer, more sustainable future.
Source ABS