Nicosia, Cyprus. Contships executive George Pateras said shipping should prioritise energy efficiency rather than alternative fuels that lack supporting infrastructure. He warned that decarbonisation efforts risk moving away from technical and economic reality.
Comments at Cyprus shipping forum
Speaking at the 9th Capital Link Cyprus Shipping Forum, Pateras, a former president of the Hellenic Chamber of Shipping, said the industry has already reduced emissions significantly over the past two decades, before the International Maritime Organisation’s drive towards “Net Zero” by 2050.
He said shipping is facing one of its biggest challenges in recent decades, while arguing that the debate has become distorted.
Net zero and environmental taxation
“Shipping has already significantly reduced emissions over the last 20 years without ‘Net Zero’,” he said, adding that “Net Zero does not mean zero emissions, but a benchmark for taxation of those who exceed the limits.”
He argued that environmental taxation is becoming a convenient policy tool.
“The IMO and the EU need money, and what better way to collect it than through environmental taxes on transport, without losing votes?” he said.
Emissions figures and cost concerns
Pateras said “the level of CO2 in the atmosphere is 440 ppm, of which anthropogenic emissions are only 16 per cent (~70 ppm). Shipping produces only 3.8 per cent of that, less than 3 ppm.”
“We spend billions to save 3 ppm, parts per million, while the rest of the world continues to burn, smoke and produce cement,” he added.
Concerns over regional emissions regimes
Pateras also raised concerns about regional emissions regimes, including those emerging in Europe and Africa, saying they create fragmentation and uncertainty.
“Of course they worry me,” he said. “It’s hard to get three people to agree on something outside their comfort zone, imagine the IMO or the EU!”
What role should energy efficiency play in shipping’s approach to emissions reduction?