Cost of reaching 2050 emissions target an estimated $1.4 trillion

The shipping industry could spend up to $1.4 trillion over the next 30 years in order to meet the International Maritime Organization’s 2050 emissions target, according to a report from the University of London’s maritime research division and the Getting to Zero Coalition.

The current target is to reduce carbon emissions 70% by 2050 from a 2008 baseline. The cost of reaching zero emissions by the same date would be $1.9 trillion, according to the report.

To put these figures into context, in 2018 alone $1.85 trillion was spent on energy investments globally.

Most of the investment would be on land projects rather than on vessels, with a cost of $50-70 billion annually from 2030. This includes the cost of alternative, low-carbon fuel production and the development of storage and infrastructure for its supply.

Only 13% of costs would relate to vessels themselves, including machinery and storage for the new fuel, and improvements relating to energy efficiency.

To help finance these investments, the report recommended a levy on ships’ carbon output—starting at $10 per ton, which would increase to $50-75 per ton by 2030.

Source: The Loadstar

Header image: Thais Morais