Shipping's perception in the public mind as a "dirty" industry is probably speeding up its decarbonisation efforts, according to one executive trying to clean up the sector.

Martin Prokosch, head of Torvald Klaveness' decarbonisation company ZeroLab, said shipping's indirect Scope 3 emissions were really not on the radar for cargo owners a few years ago.

"But of the people we are talking to now, most are including shipping in their emissions scopes," he told the group's latest decarbonisation webinar.

Prokosch said that although these emissions are only a fairly small part of a company's footprint, they are still something they can do something about now, through operational efficiency, using larger vessels and reducing speeds.

Unfair public image?

Cargo owners can influence operators, but the reputation of the industry in the wider world could also be key, he argues.

"Shipping is perceived by the public as a fairly dirty industry. It's very visible when these big ships have dark clouds over their chimneys," Prokosch said. "So it's an industry that's probably regarded as dirtier than it is in reality."

But he concluded: "At least that is just even more push to decarbonise."

Aleksander Stensby, managing director of Klaveness Digital, said there is "still this wait-and-see mentality" across industries in the supply chain.

"The price on emissions is what is going to be the game changer, but how long can we wait for that?" he asked.

Definitive pricing needed

Martin Prokosch is head of ZeroLab. Photo: Klaveness

"Until there is a price on carbon there are other variables that take precedence. Businesses need to continue," he said.

He believes the decarbonisation question is one of collective responsibility and requires a collaborative effort.

"We are still moving too slowly. It requires transparency, but we don't have to reveal all our trade secrets," Stensby said.

Kai Miller, head of strategic pricing models at logistics giant Kuehne + Nagel, told the webinar he is hoping for a binding global price on carbon at the COP26 summit in Glasgow in November.

"People are willing to pay for it," he said, saying that the price will probably amount to just 30 or 40 cents extra on a pair of trainers.

Urgent action needed

Raghav Gulati — shipping safety, sustainability and technical operations manager at mining giant Anglo American — added: "We need as an industry to walk and run at the same pace."

The executive called for urgent action and implementation.

"There are companies trying to get ahead of the curve, but somewhere they meet challenges," he said.

Gulati also bemoaned the absence of a level playing field, which reduces the pace at which the industry moves.

Common platforms are needed to brainstorm ideas and address risks, he argued.

Gulati also said Anglo American is working hard to "shift the dial", investing in and trying various solutions, and collaborating with partners.

But Prokosch said he was "a little bit pessimistic" in terms of ammonia being used as a fuel for existing ships.

"I don't think we will see large scale retrofits, going from heavy fuel to ammonia — some LNG vessels maybe," he added.

"But that doesn't mean these vessels can't become more efficient," the ZeroLab boss said.