COP29 Agreement Calls for Urgent Action to Accelerate Zero Emissions Shipping

At COP29 in Baku, Fortescue and other global shipping industry leaders signed a historic agreement calling for more action on zero-emission fuel standards and investments in international shipping. The agreement, titled "Green Hydrogen and Green Shipping: Amplifying the Power of Hydrogen in a Just and Equitable Transition," was spearheaded by the UN Climate Change High-Level Champions Team, led by Nigar Aparadarai. With over 50 signatories from across the maritime value chain, the agreement aims to leave a lasting legacy at COP29.

The timing of the agreement is critical, as the International Maritime Organization (IMO) is set to decide next April on a significant regulatory change for the shipping industry. This decision will involve a global fuel standard to regulate greenhouse gas emissions intensity and establish a carbon pricing mechanism. The launch of the Call to Action followed a high-level shipping event at COP29, where IMO Secretary-General Arsenio Dominguez, Nigel Topping, and Fortescue Executive Chairman Dr. Andrew Forrest AO discussed the progress being made towards an equitable energy transition for global shipping. Dominguez emphasized the importance of achieving balanced outcomes that benefit both the industry and member states.

The Call to Action commits signatories in the global shipping sector to prioritize investments in hydrogen-derived fuels that significantly reduce emissions and transition costs. The industry has also committed to the full decarbonization of the maritime sector, with a target of using at least 5% and potentially up to 10% of energy from zero or near-zero emissions technologies, fuels, and energy sources by 2030. Aparadarai praised the Call to Action as a pivotal moment, noting that Azerbaijan, which has seen the impacts of climate change firsthand, is uniquely positioned to foster peace and cooperation during this COP. She highlighted the urgency of transitioning to zero-emissions fuels in a way that benefits all countries, especially as climate change has already caused significant economic challenges in regions like the Caspian Sea.

Dr. Forrest stressed the importance of pairing a carbon levy of approximately $150 with a zero-emissions fuel standard to accelerate decarbonization in shipping. Fortescue, which operates a fleet of large ore carriers and charters around 1,000 ships annually, made headlines last year by presenting the world’s first dual-fuel ammonia-powered service vessel, the Fortescue Green Pioneer, at COP28. The Green Pioneer made history in March by securing flag state status from Singapore and receiving safety certification from DNV.

Dr. Forrest emphasized that Fortescue is committed to eliminating so-called transition fuels, advocating instead for a zero-emissions fuel standard that will drive real maritime decarbonization solutions. He urged the IMO to act swiftly, asserting that the choice is between wasting the next decade on incremental measures or committing to a Real Zero fuel standard that accelerates the transition to zero-emission shipping. This Call to Action represents a powerful display of global solidarity for the future of sustainable shipping.