The costs of adapting ships and port infrastructure to carbon neutral fuels will be high, warned the United Nations Conference on Trade and Development (UNCTAD), estimating that by mid-century they could reach nearly 111 billion euros.
Up to 26 billion euros will be spent on the ships themselves, and between 26 and 85 billion euros on infrastructure, UNCTAD calculated in a report on maritime transport published on Wednesday.
The release of the report coincided with World Maritime Day, which is celebrated on Thursday.
Decarbonization of maritime transport is necessary, but it must be fair, they emphasized, warning that particularly severe consequences from a cost increase of 70 to 100 percent could be borne by small island developing states and extremely poor groups that heavily rely on maritime transport.
UNCTAD therefore calls for the adoption of a universal regulatory framework that would apply to all ships, regardless of the flag under which they sail, ownership, or area of operation.
Economic incentives could include taxes or contributions related to ship emissions, said UNCTAD’s Director for Technology and Logistics, Shamika N. Sirimanne.
The maritime sector services more than 80 percent of global trade and emits nearly three percent of greenhouse gases globally, according to UNCTAD data. In just ten years, emissions have increased by 20 percent.
According to UNCTAD data, approximately 105,000 merchant ships are currently sailing the world’s seas, including nearly 12,000 oil tankers, about 5,800 container ships, and around 13,000 bulk carriers.
