Journey towards decarbonization

In an interview with Maritime Fairtrade, Laura Ashton, co-founder and CEO of advisory firm Low Carbon Advisors, said companies can thrive, and even increase shareholder value, in the decarbonization era with the right strategies. During the Singapore International Energy Week (SIEW) at end October, Laura moderated a panel session on “Women Driving Innovation and Sustainable Energy Technologies and Solutions”. 

Laura Ashton, co-founder and CEO , Low Carbon Advisors. Photo credit: Low Carbon Advisors

What unique perspectives do women have which can drive innovation in the energy sector?

Yes, I am delighted that we have such a high-profile panel for SIEW. We will be discussing several important patterns. For example, many women are outstanding connectors and are playing a vital role in building a robust energy ecosystem, particularly at the intersection of finance and energy technologies and other ecosystem partnerships. 

Empathy in problem-solving and understanding people’ needs is another feature, whether in complex-cross border policy resolution or in engaging local communities and stakeholders. 

We also see strong advocacy for the underpinning structures that allow women, especially with STEM (science, technology, engineering and mathematics) backgrounds, to thrive in the corporate environment, such as continuous learning and career path flexibility.

You co-founded Low Carbon Advisors to provide advice for the journey towards decarbonization. Why was this need identified?

Low Carbon Advisors is largely sector-agnostic as all parts of the economy need to work out how to get to net zero by 2050. The challenge we see is that it is a lot easier to set the ambition for 2050 than deliver a credible pathway to get there. However, we need more than talk. Companies need help understanding the options and to set interim goals.

What are the most pressing problems maritime clients face and why?

The marine industry is a relatively hard-to-abate sector. While it is possible to electrify some short-haul shipping, most vessels need low carbon molecules. Similarly to aviation, fuel costs are a significant percentage of operating expenses so it is hard to see a world where low carbon molecules are two to three times more costly than current fuels. 

Shipowners are faced with difficult decisions on future fuels due to uncertainty on cost and availability. While green ammonia looks promising as a destination fuel, technology and availability hurdles mean this will take some time to happen. LNG is a more doable interim step. Dual fuel vessels that are ready for low carbon alternatives, such as green methanol, are also starting to hit the market

What is your opinion of the decarbonization targets set for the maritime industry? 

The targets for maritime decarbonization do look very challenging, but sometimes high ambition is the best way to stimulate the required creativity. 

The International Maritime Organization (IMO) is now looking at the possibility of a greenhouse gas (GHG) “feebate” levy on conventional fuels. The goal would be to incentivize accelerated production and uptake of zero or near-zero GHG marine fuels, such as green ammonia, hydrogen and methanol, sustainable biofuels, and new technologies such as on-board carbon capture. It could also fund the IMO Net Zero Shipping Fund in support of developing countries’ maritime GHG reduction efforts.

How do you use your career experience to drive clients in the right direction towards decarbonization? 

You are right – my career experience has guided me naturally to the work I am doing now. Energy transition is the biggest investment opportunity in the coming years and there will be massive opportunities for companies taking the lead and seeking early-mover advantage. The cost of inaction by those who wait too long will also be massive when they no longer comply with customer procurement requirements and face brand damage and stranded assets. 

Our goal is to help boards and leadership teams go beyond the robust medium and long-term risks, and compliance requirements associated with decarbonization. We want to ensure that the potential of energy transition is at the heart of their business strategy for customers, growth and profitability.

Photo credit: iStock/ WANAN YOSSINGKUM

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