A MARITIME lobby decarbonisation in the shipping industry will ultimately impact consumers and increase inflation, reports CNBC News
A MARITIME lobby decarbonisation in the shipping industry will ultimately impact consumers and increase inflation, reports CNBC News. 'There will be an inflationary impact coming from the decarbonisation of shipping. There is no question about it,' said Global Shipping Business Network CEO Bertrand Chen.
'The EU government is imposing this cost to the shipping line, but now what that means is the shipping has to take action to decarbonise, and naturally that will impact all the consumers. So, I think it's just a trade-off people will have to live with.'
Commencing in January 2024, the EU's Emissions Trading System (ETS) is poised for an expansion to include the shipping industry.
This development means large vessels arriving at EU ports will incur charges for their carbon dioxide emissions.
The ETS presently encompasses sectors such as mining and aviation, serving as a mechanism to impose a carbon cost on the most environmentally impactful industries within the region.
'Suddenly, you need to be able to prove that indeed you're taking the right action [to decarbonise], and you can see in the shipping line industry some people are investing in the methanol ships, who are setting up investment funds to go buy those resources because it's really hard to buy the alternative fuel. Some are more passive [and] are waiting to see,' said Mr Chen.
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