Towards zero-emission through cooperation

Tiina Tuurnala,
CEO,
Finnish Shipowners Association,
Finland

Up to 90 per cent of all the goods in the world are transported by sea, such as consumer products, medicines and industrial raw materials. At the same time, shipping is undergoing a major transition, as digitalisation, automation, the increasingly stringent environmental requirements and changing services are reshaping the industry.

Approximately 2.9 per cent of global emissions are generated by shipping. While carriage by sea is an environmentally friendly and energy-efficient mode of transport, the fight against climate change concerns us all and calls for a major effort. Shipowners are fully committed to reducing shipping emissions to achieve carbon neutral sea transports. The entire sector is fervently looking for achieving zero emissions.

Global solutions for maximum impact

In 2018, the International Maritime Organisation (IMO) adopted a greenhouse gas strategy to reduce absolute carbon dioxide emissions from international shipping by 50% by 2050. In autumn 2021, the International Chamber of Shipping (ICS), the global umbrella organisation for shipping companies, called for a drastic tightening of the global maritime emissions reduction target: to make all global shipping carbon neutral by 2050.

What the shipping industry is trying to do leaves no room for doubt. The current proposal to the IMO to tighten the target is a clear indication that the shipping industry as a whole is determined to move towards zero-emission shipping and to take action to mitigate climate change. In an international industry, the greatest impact can be achieved through global regulation.

To attain the objective, cutting-edge technology and novel fuels are needed. At present, low-carbon fuels are not commercially available on the scale required by the global merchant fleet. In the future, the availability of low-carbon fuels will be of key importance. Major investments in research and development are called for. Expediting the adoption of new concepts calls for new mechanisms to finance green investments, both nationally and internationally. The ICS has also proposed the creation of an R&D Fund and the introduction of a global carbon levy. They would make it possible to channel funding to develop new marine technologies.

Europe wishes to lead the way

In July 2021, the European Commission published the Fit For 55 climate package. As part of it, the Commission proposes to extend emissions trading to maritime transport, and to promote the use of alternative fuels through the Fuel EU Maritime initiative. Swift progress on climate change mitigation measures is essential. Fit for 55 is a comprehensive climate package that seeks to push progress in the right direction. However, the effectiveness of the legislative package, the risks of carbon leakage and the combined impacts of the various initiatives, together with global regulation, need to be carefully examined before final decisions are taken. What is particularly difficult for Finland is that the legislative package proposed by the Commission does not in any way take into account the special conditions in the North and the challenges of winter navigation.

Towards zero-emission shipping through cooperation

With an annual turnover of EUR 14 billion, the Finnish maritime cluster is one of the most important industries in Finland. It gives work for over 50,000 people across the country. Its indirect impact on employment is over half a million jobs. In Finland, there are shipping companies carrying passengers and goods, specialised shipping companies, maritime industries ranging from shipyards to software houses and start-ups, as well as ports that handle up to 90% of Finland’s foreign trade. Passenger transport is also of great importance. Helsinki is the busiest passenger port in Europe, with over 12 million international passengers passing through the port of Helsinki in 2019. One of Finland’s special strengths is the exceptionally transparent cooperation between actors, which permits innovative experiments.

The shipping industry is engaged in close cooperation with its European counterparts, and this cooperation is notably active and transparent between Nordic countries. The Swedish and Finnish maritime clusters organise an annual Fairway Forward seminar, where key industry representatives from both countries meet, hear and discuss best practices and technologies for reducing emissions and harnessing digitalisation.

Cooperation is also intense between the authorities and industry in the Baltic Sea region in the framework of HELCOM cooperation. The authorities and representatives of the maritime industries in the Baltic Rim countries convene regularly for Green Team meetings to find ways to boost green shipping and overcome bottlenecks that slow down progress.

In Northern Europe, we are leading the way on environmental maritime issues; here, our special strength lies in transparent cooperation. Making the world’s shipping carbon neutral by 2050 is a joint and collaborative effort.

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