Chios, Greece. Greek shipowner George Prokopiou criticised Europe’s energy policy, saying political decisions on shipping, natural gas and LNG have left the continent facing higher costs and weaker industry.
Comments at Mare Forum Chios
Speaking at the 1st Mare Forum Chios, Prokopiou delivered a sharp assessment of Europe’s response to the energy crisis, the war in Ukraine and the shift towards LNG, saying, according to newmoney, that “political decisions often create consequences that businesses are later forced to absorb.”
Politics and business
Prokopiou drew a distinction between politics and business, saying politicians often promise “wishes” to win votes, while businessmen are obliged to tell clients the truth, even when it is uncomfortable.
Shipping and vessel speed proposal
He recalled that around seven years ago, during discussions in Cyprus, the idea of a softer transition through slower vessel speeds had been raised. According to Prokopiou, reducing ship speed by two knots could have cut emissions by as much as 30 per cent almost immediately.
He said Northern European countries reacted strongly to the proposal, insisting that containerships should continue operating at higher speeds, even though several companies in the sector were making losses at the time. Prokopiou said the logic was that lower speeds would require more vessels, helping to balance the market while also reducing emissions.
“This shows a European tendency to make decisions that ultimately backfire,” he said.
Natural gas, fracking and investment
Prokopiou said decisions by politicians and banks to limit investment in natural gas and fracking, largely for environmental reasons, had reduced production and helped trigger a sharp rise in energy prices.
He said the production cost of fracking in the US had previously been around 50 dollars, while under current conditions companies now need about 62 to 63 dollars to break even.
What do you think about the role of political decisions in shaping Europe’s energy and shipping policies?