Net Zero Industry Tracker 2024

since shipping costs form a small percentage of the price of products. While the percentage increase of end-customer price is low, in absolute terms this is a significant increase in price of essential commodities like oil, grains and metals, and has a significant impact on developing countries. The FMC has set ambitious targets for the uptake of technologies by 2030 to enable longer-term decarbonization in 2050. Carriers have committed that at least 5% of their deep-sea shipping will be powered by ZEFs by 2030. Cargo owners have committed that at least 10% of their goods volume shipped via deep-sea shipping will be on ships powered by ZEFs by 2030, progressing towards 100% by 2040.195 Some players in the shipping industry are exploring the “book and claim” approach until the production and widespread availability of ZEFs improves globally. In this approach, shipping companies can purchase low-emission fuels or ZEFs (even if that fuel is not physically being used by their ships) in return for emission-reduction credits or certificates to offset their own emissions. This approach allows shipping companies to support the decarbonization of the industry (by contributing to the green premiums) and help sustain the demand for low- emission fuels and ZEFs. It also facilitates a faster, less challenging and more cost-efficient transition, as it allows a few assets to decarbonize fully, rather than asking all assets to marginally decarbonize year-on-year. Rocky Mountain Institute (RMI) and the Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping (MMMCZCS) are collaborating with the Zero Emission Maritime Buyers Alliance (ZEMBA) and Hapag-Lloyd to pilot a Maritime Book and Claim System.196 Mitsui O.S.K. Lines has become the first Japanese company to join the Book and Claim Community (BCC) board.197 Top countries/regions for shipping trade volume (2022) and ships built (2023) FIGURE 33 Source: United Nations Trade and Development (UNCTAD).Percentage of overall sea trade volume 1 China 32% 2 US 7% 3 Singapore 4% 4 South Korea 3% 5 Malaysia 3%Percentage of total ships built 1 China51% 2 South Korea28% 3 Japan15% 4 Philippines1% 5 Viet Nam1% 59 Net-Zero Industry Tracker: 2024 Edition