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DSF Thinks Decarbonization Will Shrink the Shipping Industry

port hedland
Producing green steel in Australia would mean fewer iron ore and coal cargoes (file image courtesy Port Hedland)

PUBLISHED NOV 8, 2021 6:02 PM BY THE MARITIME EXECUTIVE

 

In a forecast issued last week during the COP26 summit, Danish Shipping Finance (DSF) predicted that decarbonizing the global shoreside economy will result in a smaller shipping industry – indirectly helping shipping to reduce its emissions. The report echoes the findings of ABS’ global sustainability team, which reported last year that dramatic reduction of the tanker and bulker fleets may help shipping meet its CO2 targets.

“If these predictions prove fairly accurate, emissions from shipping will improve not only with the introduction of new fuels but also owing to a massive reduction in seaborne commodity demand,” DSF predicted.

Fewer ships for big commodities

The biggest changes may be seen in the dry bulk trades, which are centered on coal, iron ore, bauxite and other basic ingredients for heavy industry.

“Cheaper renewable energy is paving the way for . . . the thermal energy needed to make steel, cement and other basic materials to decarbonize towards the middle of the century,” wrote DSF’s analysts. “The impact on seaborne trade from decarbonizing industrial heat could be radical. Basic materials industries may relocate when industrial heat has been decarbonized.”

 

SOURCE READ THE FULL ARTICLE

https://www.maritime-executive.com/article/danish-ship-finance-thinks-decarbonization-will-shrink-shipping