Decarbonisation strategy likely your best business strategy, says ABS Chairman, President, and CEO

Source: press release, 18 October 2021

ABS Chairman, President and CEO Christopher J. Wiernicki (photo: ABS)

Such is the scale of industry disruption from decarbonisation that a decarbonisation strategy likely is now the best business strategy for shipowners.

That was the message for the industry from Christopher J. Wiernicki, ABS Chairman, President, and CEO in a keynote speech to open North American Shipping Week.

“Already today, it’s not enough to have a decarbonisation strategy for your business. No, decarbonisation is increasingly likely to be your best business strategy. This challenge requires us all to embrace the new language of shipping – which is CO2 emissions per ton mile,” said Wiernicki.

“Decarbonisation of our industry represents a strategic opportunity for the entire industry, a structural realignment of historic proportions where the entire ecosystem and value chain is being shaken up. Over the next three decades, the International Energy Agency estimates there will be well over USD 100 trillion total in clean energy investment. Against that backdrop, it is clear that a failure to adapt and grasp the nettle of decarbonisation is the surest guarantee of obsolescence,” he said.

In a wide-ranging speech, he called for governments to play their role in supporting the industry to meet its decarbonisation objectives.

“Reaching the decarbonisation target for 2050 is currently a challenge where we can only see the outline of a solution. As we highlighted in our third low-carbon shipping outlook, our industry cannot reach the decarbonisation targets alone. While 2030 may be within operational reach, 2050 will require a solution played out across the entire value chain. And this is where we need governments to step in with policies to accelerate development of low-carbon solutions and secure the proper infrastructure for their distribution,” Wiernicki added.

“Just securing the required quantities of zero-carbon fuels to power our industry’s transition will require scaling up the global renewable energy sources by a factor of 10. Incentivising early movers and creating the framework for carbon neutral fuels will require focused policy making.”