Closing the Gap: a report puts a carbon price for shipping industry to be fully sustainably fueled by 2050

The Getting to Zero coalition has recently published a new report called Closing the Gap. The pubblication focuses on the policies needed to close the competitiveness gap between fossil fuels and zero-emissions alternatives in the shipping industry, therefore enabling a smoother and fairer green transition. The target year is set to 2040 but, as some entrepreneurs point out, to reach this objective it will be necessary to reduce the costs of zero-emission alternatives. To do so, developing the potential of public-private cooperation is fundamental.

Reading the report it’s possible to see how there are multiple potential policies considered as successful. However, it would be preferable to adopt a policy package in order to mitigate individual policies’ weaknesses and increase their strengths. On a more practical level, these packages may for example deal with global-market based solutions that collect revenues then used to support the transition fairly.

One fundamental aspect to not forget, according to the authors, is in fact the equitability of the transition to net-zero solutions. The shipping industry, as well as the whole globe, is already experiencing inequalities, many of which are worsening under climate change pressure. This is why the policies should be headed towards a more fair shipping industry.

The report also estimates that the carbon price will fully decarbonise by 2050. Looking at the data, the introduction in this decade of a relatively small carbon price to be progressively increased to around 200$ will make it possible for the shipping industry to be fully powered by zero-emissions energy sources by 2050. The key to get there is the work on a global package of policies and this year, as the Closing the Gap report states, will be fundamental to make it possible.