The International Maritime Organization (IMO)’s revised Greenhouse Gas (GHG) emissions targets in July 2023 are all the rage and talk of the town. In an interview with Maritime Fairtrade, Bo Wegener, CMA CGM Asia Pacific’s CEO, opined that different parts of Asia are progressing at different speeds. While that is expected, what is more fundamental is the approach to decarbonization and shaping the ecosystem in a frame that fits the fluid landscape.
Bo Wegener, CEO, CMA CGM Asia Pacific. Photo credit: CMA CGM
IMO’s revised GHG emission strategy aims for international shipping to reach zero emissions by 2050. In Asia Pacific, how do you think the industry is progressing thus far?
In North Asia, leading maritime nations like China, Japan and South Korea work together with the IMO on global solutions although they also have their own decarbonization strategies. Whereas in Southeast Asia, many have committed to decarbonizing their economies by 2050 but a lot remains to be done to develop and implement their strategies. This includes how the shipping industry could accelerate its shift away from fossil fuels.
Shipping is international in nature, and it is important that Asia continues to gain momentum in the transition to clean shipping. As a global carrier with an ambitious decarbonization roadmap, CMA CGM will continue to play a role in facilitating an equitable transition to a low-carbon future.
What are some issues that have impeded the transition to green fuel for different stakeholders along the fuel supply chain?
Firstly, it is a fragmented approach to decarbonization in shipping. A worldwide sustainable supply chain for low-carbon maritime fuels does not exist today. That is because the high cost of low-carbon maritime fuels needs to be more affordable. There are different perspectives on fuel adoption and tracks of solutions.
Carriers have different timeline and pace of developments. For instance, CMA CGM already has 42 e-methane ready vessels in operation today while some are only about to receive their first LNG vessel. All these issues make infrastructure planning and development for maritime decarbonization challenging.
The second issue is shaping the ecosystem. A collective operational and financial effort, from various stakeholders including shippers and authorities, will be required to implement a globally harmonized carbon pricing and regulatory framework to shape the ecosystem. This would ensure a level playing field and provide access to clean fuels in the industry for a successful transformation.
For instance, the government would set global standards and regulations while incentivizing responsible carriers and players; carriers will invest in technologies and ships; oil majors will invest in their supplies of clean energies; shippers will pay for their share of decarbonized shipments.
Green shipping corridors are playing a critical role in facilitating the development and adoption of various net-zero fuels. How are these corridors expected to transform the industry towards sustainability?
Green corridors indeed are fundamental for transformation. CMA CGM Group is on the Singapore-Rotterdam Green and Digital Corridor and Shanghai-Los Angeles Corridor. Green corridors gather important stakeholders like Maritime and Port Authority of Singapore (MPA) and Port of Rotterdam, key carriers, terminal operators, fuel majors for ONE common mission – to decarbonize. The engagements help to converge solutions that the different parties are exploring and deploying today and tomorrow.
Through such engagements, ports and fuel suppliers get to better understand what carriers are looking for to plan infrastructure and fuel sources ahead that could be offered or scaled up. For example, CMA CGM expressed our focus on a diversified dual fuel fleet: 119 new vessels that will use biomethane, biomethanol and e-fuel by 2028. We also discussed critical concerns such as ammonia safety, so that experts can look into pragmatic solutions around it or further assess its viability.
There are opportunities for the port authorities to look at developing a supportive legal framework with viable incentives by engaging the respective stakeholders. In a nutshell, green corridors bring different stakeholders together for common solutions to be scaled up operationally and commercially, and to harmonize definitions, standards and incentives.
The harbor craft sector is booming. How can this sector develop and transform its operations in order to deliver optimal marine services?
From 2030, all new harbor craft operating in the Port of Singapore will have to be fully electric, be capable of using B100 biofuel, or be compatible with net zero fuels such as hydrogen. As the Singapore port ecosystem transforms to operationalize electric harbor craft and B100 biofueled powered vessels ahead, the commercial deployment of such a smart and efficient fleet that meets the mandate of the Port of Singapore will require acceleration.
Several pathways are necessary for its success. Firstly, MPA-validated electric harbor craft proposals, green financing for the development of electric harbor craft. Secondly, there is a need to provide access to B100 biofuels or other net zero fuels with affordability to encourage adoption. Lastly, training the maritime workforce will be instrumental to the transition.
For CMA CGM, we rely on tug vessels (and harbor crafts) for towage services as well as to assist our container vessels in berthing and unberthing operations in Singapore.
Photo credit: iStock/Khanchit Khirisutchalual
