In a bid to accelerate maritime industry's green transition, Danish Shipping has released ten critical recommendations to drastically scale up the production of alternative fuels. This initiative comes amidst growing concerns that the current pace of green fuel availability is insufficient to meet the industry's ambitious climate targets.

The recommendations were unveiled following a high-level summit in Copenhagen on March 18, which convened key stakeholders from shipping companies, fuel producers, government authorities, and the Minister for Industry, Business and Financial Affairs. The summit underscored the urgent need for collaborative efforts and strong political commitment to achieve climate-neutral shipping by 2050.

A recent survey by Danish Shipping revealed that while Danish shipping companies are prepared to invest in new vessels capable of running on green fuels, they anticipate widespread adoption only after 2035 due to the severe shortage of these fuels. There is a critical need for substantial investments across the entire value chain, from renewable energy generation and green fuel production to the shipping companies themselves.

Recommendations from Danish Shipping include:

• Diplomatic Offensive for Global Regulation: A strong push for global regulations within the International Maritime Organization (IMO) to create a level playing field and incentivize green operations.

• Scale-Up of Green Fuel Production: Focused government efforts to increase the production of green fuels specifically for the shipping sector.

• Increased Allocation of EU ETS Revenue: Allocating a larger portion of revenue from the EU Emissions Trading System (EU ETS) to support the green transition of shipping, with a primary focus on accelerating green fuel production.

• Establishment of Financial Support Schemes: Implementing robust support schemes to provide financial backing for the green transition, including the scaling up of green fuel production.

• Dedicated Support via EU Hydrogen Bank: Securing additional dedicated support funds for shipping through the EU Hydrogen Bank.

• Strategic Partnerships for Green Fuel Production: Committing Denmark to partnerships with selected countries to enhance green fuel production.

• Prioritization of Green Shipping Cooperation: Emphasizing green shipping cooperation in the North and Baltic Seas, including the establishment of concrete green routes.

• Fulfillment of Renewable Energy Ambitions: Realizing the political agreement "Danmark kan mere II" to ensure the rollout of renewable energy.

• Establishment of Necessary Port Infrastructure: Implementing the recommendations of the Danish Havnepartnerskab (Port Partnership) to ensure the necessary infrastructure in ports to meet future demand.

Anne H. Steffensen, CEO of Danish Shipping, warned of the potential risk of becoming overly dependent on China, which is currently leading in green fuel production, similar to its dominance in the solar and wind industries.

The urgency of these recommendations is underscored by the fact that the shipping sector accounts for approximately three percent of global CO2 emissions. To achieve meaningful decarbonization, massive investments and close collaboration between industries and authorities at both national and European levels are essential. Danish Shipping's comprehensive plan provides a roadmap for decisive action, urging the Danish government and EU to prioritize this critical agenda.