A container is unloaded at DP World London Gateway. The shipping sector currently accounts for 3 per cent of global emissions. Photo: DP World
A container is unloaded at DP World London Gateway. The shipping sector currently accounts for 3 per cent of global emissions. Photo: DP World
A container is unloaded at DP World London Gateway. The shipping sector currently accounts for 3 per cent of global emissions. Photo: DP World
A container is unloaded at DP World London Gateway. The shipping sector currently accounts for 3 per cent of global emissions. Photo: DP World

Britain calls for net zero global shipping emissions by 2050


Alice Haine
  • English
  • Arabic

Britain, the host of this year’s Cop26 environment summit, called for net zero global shipping emissions by 2050 on Monday, as the country looks to clean up the industry at a faster pace.

While international regulations require the global shipping industry to cut its emissions by 50 per cent compared with 2008 levels, the UK Chamber of Shipping wants the International Maritime Organisation to double this target and commit to net zero emissions by the middle of the century.

"Taking action now allows us to lead the charge on this global shift, creating highly skilled jobs for British workers and shaping the landscape for what clean shipping and trade will look like for future generations,” said UK transport secretary Grant Shapps.

The government launched what it describes as the “greenest ever” London International Shipping Week on Monday, as it looks to build on initiatives aimed at slashing emissions and establishing the UK as an international leader in green maritime transport.

The UK’s backing of a world-leading absolute zero target for international shipping emissions by 2050, which needs to be agreed through the International Maritime Organisation, would be a significant increase of ambition for the sector, which is currently accountable for 3 per cent of global emissions.

This week, Mr Shapps will also reassert the importance of building a thriving maritime sector focused on innovation, highlighting his ambition to have zero emission vessels entering into commercial service by 2025, which opens the possibility for cleaner and greener channel crossings in the next decade.

These initiatives follow commitments outlined in Britain’s Transport decarbonisation plan, which explored the establishment of a UK Shipping Office for Reducing Emissions, a dedicated unit within the Department for Transport focused on decarbonising the maritime sector.

“As a maritime nation with a rich history, and host of COP26 this year, we are proud to be at the forefront of the greener era for maritime, charting an international course for the future of clean shipping,” Mr Shapps said.

Bob Sanguinetti, chief executive of the UK Chamber for Shipping, said the organisation wanted be at the forefront of the green agenda and now is the time to call for radical action.

"The aim of cutting shipping's emissions by 50 per cent just doesn't go far enough,” Mr Sanguinetti said.

“We need to show the world we mean business and it is imperative that the IMO commits to a net zero carbon emissions target by 2050.

"The shipping industry is one of the cleanest ways of moving goods around the world, but we know we need to do more to cut our emissions."

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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2015/16 Everton: 37(1) - 18
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DUBAI SEVENS 2018 DRAW

Gulf Men’s League
Pool A – Dubai Exiles, Dubai Hurricanes, Bahrain, Dubai Sports City Eagles
Pool B – Jebel Ali Dragons, Abu Dhabi Saracens, Abu Dhabi Harlequins, Al Ain Amblers

Gulf Men’s Open
Pool A – Bahrain Firbolgs, Arabian Knights, Yalla Rugby, Muscat
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Pool C – Abu Dhabi Harlequins 2, Roberts Construction, Dubai Exiles 2
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Pool A – Deira International School, Dubai Hurricanes, British School Al Khubairat, Jumeirah English Speaking School B
Pool B – Dubai English Speaking College 2, Jumeirah College, Dubai College A, Abu Dhabi Harlequins 2
Pool C – Bahrain Colts, Al Yasmina School, DESC, DC B
Pool D – Al Ain Amblers, Repton Royals, Dubai Exiles, Gems World Academy Dubai
Pool E – JESS A, Abu Dhabi Sharks, Abu Dhabi Harlequins 1, EC

Gulf Women
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Pool B – Emirates Firebirds, Sharjah Wanderers, RAK Rides, Beirut Aconites
Pool C – Dubai Hurricanes, Emirates Firebirds 2, Abu Dhabi Saracens, Transforma Panthers
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Gulf U19 Girls
Pool A – Dubai Exiles, BSAK, DESC, Al Maha
Pool B – Arabian Knights, Dubai Hurricanes, Al Ain Amblers, Abu Dhabi Harlequins

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Updated: October 07, 2021, 11:56 AM