Prisilla Nadar

Time and again the shipping industry has proved that it is a proactive industry, by sailing through various challenges raised due to COVID-19. Another top priority challenge it faces is reducing the carbon emission by 50%. To overcome this challenge, several meetings and resolutions have been taken to bring out the cost effective way to reduce the emissions.

The Institute of Chartered Shipbrokers (ICS), Hong Kong Branch; The Royal Institution of Naval Architects, Hong Kong Joint Branch (HKJB); and The Institute of Marine Engineering, Science and Technology (IMarEST) jointly organised a webinar – Technological & Commercial Impact on Shipping Environmental Regulations on 04th November.

Welcoming the august virtual gathering Mr Jagmeet Makkar, Chairman, ICS HK said, “We are a responsible industry and we wholeheartedly welcome the new regulations which will help to make our planet better. The roads ahead are every challenging as it will be a multi fuel regime, but let’s not get disheartened, as shipping always finds a way.”

Mr Simon Chen, Chairman, HKJB declared the floor open for discussions and introduced the speakers for the day.

“Among all the transport industry, shipping is least contributing to the pollution. However, we need to take some action to minimize GHG emissions,” said Mr Kaushik Roy, Vice Chair, HKB, Secretary, NKH. According to him, the emissions level for 2020 and 2021 were lesser than predicted due to Covid pandemic; which is expected to increase as the industry begins to resume its operations.

Though shipping is the least contributor, it emits around 940 million tonnes of CO2 annually. If proper steps are not taken now, the emissions will increase between 50%- 25% by 2050. Industry, however is working to reduce its overall environmental impact when it comes to Carbon, NOX, SOX, and GHG emissions.

Speaking on the commercial aspect Mr Peter Balogh, senior manager, Commercial, TCC group opined, “The current designs face significant hurdles with phase 3 compliance.”

On investor’s perspective, Mr Balogh mentioned, “The vessel that is more clean ship is rated much worse, in terms of grams CO2 per tonne miles; because the vessels are compared in this band of dead weight it is not an absolute comparison in terms of what is better for the planet, it is the comparison of what is better compared to those ships around it.

Charters at this point do have lot of control, but what equally important is control on the yards and on the engine manufacturers for those vessels and new designs in terms of support and sustainability.”

“IMO goals can become tighter from 2026 onwards,” stated Mr Sanjay Relan, General Manager, Voyage, MICS. He explained the challenges of IMO Goals such as there is an enormous need for finance for decarbonization. “IMO GHG goals will require approximately US $ 1.4- 1.9 trillion in 2030-2050; around 80% of these cost is needed in land based infrastructure and production facilities for low carbon fuels. Things are not going to be easy from 2023, but we have to come up with a solution,” he added.

In question and answer session, speakers spoke about improving carbon performance or carbon free solutions, various alternatives and status and challenges involved.

“What we can do on a regular day to day basis in terms of changing the way we live and possibly reduce our contribution rather than looking outwards, look inwards and try and make a difference,” said Mr Makkar while concluding the entire session.

Marex Media