MOL report from COP28 at Dubai announcement of a joint statement with Maersk on decarbonisation in the Shipping Industry

December 11, 2023
(Prime Minister Kishida and Executive Officer Watanabe)(L)(Wind Hunter and Wind Challenger)(R)

Mitsui O.S.K. Lines,  participated in the 28th Conference of the Parties to the United Nations Framework Convention on Climate Change held in Dubai, UAE from November 30 to December 12, 2023. MOL exhibited the Next-Generation Wind Powered Vessel WIND CHALLENGER and the ultimate zero-emissions seagoing vessel Wind Hunter at the Japan Pavilion hosted by the Ministry of the Environment. In conjunction with the COP, the Company’s executives, including President Hashimoto, spoke at various events hosted by various companies and organizations at Blue Zone

In conjunction with COP28, a statement was released on the official website of the World Economic Forum and A.P. Moller Maersk, one of the world’s largest container shipping companies, on the decarbonization of the shipping industry. The full text can be viewed here.

[Statement Summary]
Bridging the price gap between clean alternative fuels and fossil fuels is key to decarbonizing the shipping industry

It is estimated that the cost of converting renewable energy into a form that can be used as fuel on ships, is three to four times higher than conventional fossil fuels. Fuel costs account for about 30-50% of operating costs, and this price difference is a barrier to the decarbonization of the shipping industry.
There is no singular zero-emission fuel alternative that can satisfy the volume of bunker fuel that is used today. The maritime industry is a melting pot of participants with an extreme diversity of attributes, and different solutions need to be nurtured with different partners for the decarbonization of all types of ships. To decarbonize, the industry is dependent on scaling the production of zero-emission (green) fuels like ammonia, methanol, hydrogen and also battery to deploy and power zero-emission vessels. Support from within and outside the industry, including the government, and their policy are important to correct the price difference and promote the stable supply of various clean alternative fuels.

At the “TIME 100 Impact Dinner” hosted by TIME magazine, where international organizations and companies from various countries gathered, President Hashimoto gave a speech on future global warming measures. Hashimoto emphasized that “we need to develop many new technologies” to transition to clean energy.

During this event discussing the importance of Transition Finance, hosted by the Ministry of the Environment and the Glasgow Financial Alliance for Net Zero (GFANZ), President Hashimoto argued that multiple pathways are needed to decarbonize the shipping industry, which underpins various supply chains. He advocated for a phased investment approach, including ① immediate investment in LNG and methanol, which can be implemented right away, and ② investment in fuels such as ammonia and hydrogen, which require technological development.

(CEO, Mr. Hashimoto, Vice-Minister for Global Environmental Affairs, Ministry of the Environment, Mr. Matsuzawa Director, Climate Policy Initiative, Ms. Tiza)

CESO’s Watanabe attended at the Norway Pavilion-sponsored events “Accelerating the green maritime transition – the fuel conundrum” and “Clean Ammonia as A Global Pathway to Keep the 1.5°C Goal in Reach”. Over the course of two days, Watanabe CESO, took the stage at these events. He explained MOL’s strategy and efforts regarding the introduction of clean alternative fuels. On the first day, he discussed the challenges facing the maritime industry in decarbonization, and on the second day, ammonia fuel with the other participants (note2).

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