The uncertainty surrounding the proposed carbon levy by the International Maritime Organization (IMO) is causing shipowners to exercise caution and reluctance in making significant investments in the shipping industry. Christopher J. Wiernicki, Chairman and CEO of ABS, conveyed this sentiment during his address at the CERAWeek energy conference. He emphasized that the carbon levy represents a “wild card,” with its feasibility and execution still in question.
Wiernicki explained that the varying potential levies—ranging from $18 to $150 per ton—create a substantial degree of uncertainty for shipowners. “With the absence of a clear global carbon pricing mechanism, it is understandable that owners are cautious,” he noted. This unpredictability affects numerous factors including operational efficiency, investment strategies, and overall asset viability.
In response to this uncertainty, Wiernicki pointed out that shipowners are utilizing available tools to navigate the current landscape. He highlighted that the industry is increasingly focusing on balancing short-term efficiency improvements with long-term readiness for alternative fuels. Investments in digital optimization, wind-assisted technologies, and energy efficiency are becoming crucial components in the transition towards more sustainable practices.
Furthermore, carbon capture and storage (CCS) technology is gaining momentum, with ongoing trials suggesting its potential to permit the continued use of fossil fuels while still aligning with net-zero emissions objectives. During the CERAWeek conference, Wiernicki also participated in an interview on the Aaron Harber Show, aired on PBS, where he discussed the intersection of shipping, the U.S. economy, emissions, and technological advancements. The conversation underscored the importance of these factors in shaping the future of the shipping industry.