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Friday, November 26, 2021 

NAPA CEO Mikko Kuosa says that the IMO's EEXI and CII are likely to achieve marginal efficiency gains for shipping operations, and unless the industry can change these misaligned incentives, it will be hard to achieve meaningful reductions in greenhouse gas (GHG) emissions.

Kuosa writes that the conversations at the recent COP26 demonstrated a strong willingness from key stakeholders to step up efforts – for example, there have been many calls for a carbon tax and many of shipping’s leaders have joined the Getting to Zero Coalition. Initiatives such as the Declaration on Zero Emission Shipping by 2050 and Clydebank Declaration also reflect an unprecedented level of government commitment to instigate tangible change.

He said: "To move forward as an industry, the drive and momentum achieved at COP26 must be maintained, especially at MEPC 77. While talk of pledges is a positive sign, we need action that reflects the real opportunity we have at our fingertips right now"

Kuosa believes the industry must focus on real energy efficiency and increased cross-sector collaboration to ensure that the proposed decarbonisation pathways result in significant carbon reductions and that their impact is measured using standardised frameworks.

"Commercial incentives that promote inefficient shipping must also be revised, as vessels are still operating in a ‘completely crazy’ way, rushing to wait outside ports. This is why, the routes to EEXI and CII must be critically assessed for their effectiveness, and key flaws in shipping’s decarbonisation plan must be discussed," he said.

Kuosa continued: "Therefore, with or without a prompt from the IMO, it is within owners’ and operators’ best interest to get ahead of the pack and start reducing operational emissions now. This can be done profitably by taking advantage of proven and effective solutions that are already on the table. A combination of such readily deployable energy efficient digital technologies, such as our Voyage Optimisation solutions, can have a significant impact across the supply chain now. They will also become commercially imperative in the coming years as the development of pricier low and zero carbon emission fuels leave vessel owners and operators at risk of losing their competitive edge. Together with maritime leaders like Airseas, Houlder, Norsepower, and I-Tech, we have called for a renewed industry focus on investment in energy efficiency solutions that are fully commercially available, for both retrofits and newbuilds, to extend the lifespan of existing fleets and reduce the environmental footprint of the sector. If we are to meet such a colossal joint objective, we must without a doubt, work together."

Kuosa believes that with regulatory, consumer and financial pressure mounting, there is no doubt that the shipping industry needs to change, and rapidly, to plan ahead, and act now using solutions available today to incite real environmental change.

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