Expert Focus: How emissions accounting can help decarbonisation
In this Expert Focus video, produced as part of Lloyd’s List’s Future of Shipping programme, RightShip chief executive Steen Lund, talks about how transparency and accounting can play a key role in shipping's sustainability push
New technologies and regulations are fundamental enablers of shipping’s decarbonisation. But robust emissions accounting and the transparency that offers will also become increasingly significant amid stakeholder pressure and societal expectations
SHIPPING companies and their customers are under growing pressure to not only reduce their emissions but to be more accountable and transparent for their contribution to climate change.
In 2018 the International Maritime Organization committed to reducing international shipping’s greenhouse gas emissions by at least 50% by 2050 compared with 2008.
But RightShip chief executive Steen Lund said the market is progressing faster than the existing IMO targets and that in this climate charterers and banks are demanding services that offer greater transparency on emissions reporting.
Mr Lund believes that emissions accounting can help attain both environmental targets and business growth in the sector.
“A commitment towards reducing emissions helps everyone work towards a shared industry sustainability goal,” he told Lloyd’s List.
Mr Lund said that it also enables the charterers to meet shareholder expectations and to manage public perception. That also makes for a more attractive proposition for investors.
“And also as focus on responsible investment grows we clearly see that those with clear emissions reductions strategies, they are given a competitive advantage for capital,” he said.
Initiatives such as the Sea Cargo Charter, under which major charterers will report their annual emissions of their shipping activities and examine whether they are aligned with global decarbonisation goals, has the potential to radically change emissions accounting in international shipping.
Across the year, The Lloyd's List Future of Shipping series will gather industry leaders, policy-makers, investors, financiers and sector experts to offer a unique programme of informed analysis and intelligent debate that will build into an industry playbook for a sustainable and profitable future. For more information and to register for our webinars, follow this link