Ocean Shippers Fear $300 Billion Climate Price Tag
To become a net-zero industry will cost $300 billion between now and 2035, the world’s largest shippers believe. The figure is based on the International Maritime Organization climate plans. The ultimate goal of the program is to have a net-zero program industry by 2050.
The US opposes the plan entirely. It describes the plan as a “global climate tax.”
The fleet that is at the core of the program numbers about 1,200 vessels, according to Bloomberg. The cost of the plan per year is between $20 billion and $30 billion.
Inflation Risk
Among the greatest risks of the costs of the programs is inflation. The costs to shippers will be passed on to consumers whenever possible. In cases where it is not, the shipping companies will have falling margins.
The problem is not for the ocean-going shippers alone. Large shippers, primarily operating on ground and air-based networks, have begun to adopt more environmentally friendly energy solutions. However, this involves a change in their fleets as they drop the number of gas-powered vehicles they have to migrate to electricity. Changes to aircraft are significantly more challenging and may not yield substantial benefits for years, or even decades.
The more it costs governments and industries to become green, the less likely it will happen
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