Author | Fang Qi, Ge Yuanfang, Wang Zhengcheng, Qian Lihua, Lu Political Commissar
Shipbuilding, carbon pricing, ESG
Based on the perspectives of carbon pricing and ESG, this paper discusses the opportunities and challenges for the sustainable development of shipbuilding enterprises.
In terms of carbon pricing mechanisms, the development of carbon pricing mechanisms for the shipping industry has become a global trend. The International Maritime Organization (IMO) will establish a global pricing mechanism for greenhouse gas emissions from shipping, and will reach agreement on specific measures by 2025 at the earliest; The European Union Carbon Market (EU ETS) has been officially extended to the shipping industry from 2024, and shipowners with routes that originate or end in EU ports will face compliance obligations. China's Shanghai local pilot carbon market has covered shipping companies.
At present, the carbon pricing mechanism at home and abroad is mainly aimed at shipping enterprises rather than shipbuilding enterprises, and based on the characteristics of the industry, it is difficult for automobile manufacturers to replicate the credit trading system in the shipbuilding industry.
While the shipping industry is the main direct contributor to the carbon pricing mechanism, it will be further transmitted to the shipbuilding industry. The carbon pricing mechanism mainly imposes a fee on shipowners based on the greenhouse gas emissions generated by the ship during the voyage, thereby directly increasing the operating costs of the shipowner. In response, in the short term, some shipowners are reducing carbon emissions by sailing at reduced speeds, creating a supply gap, which in turn will drive up the demand for energy-efficient vessels. In the long run, the demand for replacement of ships with alternative fuels such as LNG, methanol, ammonia, and hydrogen will increase. At present, China's market share of green power ships is leading in the world, and CSSC undertakes nearly eighty percent of the mainland's orders for alternative fuel ships, which will usher in greater development opportunities in the context of the global carbon pricing mechanism driving up the demand for alternative fuel ships.
In terms of ESG, the requirements for the construction of ESG systems of central enterprises in mainland China have been continuously strengthened, and the supervision of ESG information disclosure at home and abroad is also accelerating, shipbuilding enterprises represented by CSSC will face increasing ESG compliance challenges, and the need to improve ESG governance capabilities, ESG risk management capabilities and ESG information disclosure capabilities is becoming increasingly urgent. However, on the other hand, climate change is the most concerned issue under the global ESG regulatory trend, and shipbuilding enterprises with a fast pace of green transformation will also usher in ESG development opportunities.
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