COP28 supply chain highlights

A new climate deal was reached at the COP28 United Nations climate summit in Dubai that marks the first instance of a collective call for all nations to transition away from fossil fuels. However, the agreement does not explicitly mandate the phasing out of fossil fuels. As part of COP28, a summit coordinated by the International Chamber of Shipping was convened around Shaping the Future of Shipping: Delivering a Net Zero World, to deliberate solutions for meeting the International Maritime Organization’s initiatives to spur the adoption of alternative zero and near-zero GHG fuels by 2030 – and to ultimately reach net-zero GHG emissions from international shipping by or around 2050.

Mrs. Melina Travlos, President of the Union of Greek Shipowners & Chair of the Board of Neptune Group of Companies, noted meaningful progress made in the shipping industry over the past 20 years, during which time shipping activity has nearly doubled while shipping emissions in terms of global CO2 emissions have declined from around 2.9% to 2.2%. Further progress towards a sustainable future remains tied to a central theme – the solutions required for lasting supply chain decarbonization lie within the cooperation and integration of players across the entire value chain, and out-of-sector stakeholders as well. Shippers should be aware of the EU Emissions Trading System (ETS) ‘cap and trade’ system and corresponding surcharges that will apply to maritime transportation starting January 1, 2024.