Business at Sea: The importance of instituting and implementing environmentally-friendly approaches

The shipping industry accounts for a significant portion of global emissions and is thus under pressure to employ environmentally-friendly methods in order to prevent climate change and secure the future of freight shipping.

Shipping Responsible for Global Emissions 

Studies have revealed that the shipping industry emits a significant amount of greenhouse gases into the atmosphere each year. In fact, the industry releases around 1 billion tonnes of Co2 emissions yearly, accounting for 3.1% of annual global CO2 emissions. In addition, a study by CE Delft has predicted that these emissions have the potential to increase by 120% by 2050. By this time, the shipping industry may account for up to 10% of global greenhouse gas emissions.

Therefore, it is vital for companies that rely on freight shipping to be more conscious about the detrimental impacts of the sector and support shipping companies in their efforts to go green and adopt sustainable processes. Not supporting these changes will result in failure to reduce emissions, which will have a significant impact on both the environment and the future of shipping.

Meeting the Demands of the Paris Agreement

The Paris Agreement states that parties must establish “economy-wide” emission reduction targets, meaning that the shipping industry, an integral part of the economy, must make deliberate steps to reduce its emissions. 

The International Maritime Organization (IMO) agreed in 2018 that it would reduce shipping emissions by 50% by 2050, thus requiring shipping companies to comply and make changes to meet these goals. Moreover, the IMO also stated that it would pursue reaching this goal as soon as possible, putting extra pressure on companies to make immediate changes. To meet these goals sooner, the IMO agreed that by 2030, emissions associated with international shipping must reduce by at least 40%. 

Implementing environmentally friendly approaches such as adopting renewable energy, switching to alternative fuels, and embracing “slow-steaming” are all essential to meeting the goals of the Paris agreement and protecting the future of the industry.

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