UK Chamber of Shipping chief executive Rhett Hatcher admits that the net-zero investment plan for this year may seem large, but pales in comparison to what the eventual total will be.
The chamber has urged the new UK government to spend £700m ($915m) over the next 12 months to help decarbonise the sector.
“It’s a big number and a lot of money, but it’s almost a drop in the ocean compared to the total that we are going to have to spend on this journey [to net zero]. We’re talking about trillions of pounds for the whole journey,” he told TradeWinds at Shipping UK in London this week.
Hatcher said that while getting to net zero poses an enormous challenge for the industry, “the longer we don’t invest in these things, the more they are going to cost”.
He added that the investment value the chamber agreed upon, while being a considerable amount, is evidence-based.
“Those numbers are extrapolated from known things, based on empirical evidence and data … we’re absolutely conscience that we’re all competing for what is a finite amount of resource, but my view is that we should genuinely be asking for what we need not what we think the market will bear,” Hatcher said.
Asked if the government knew details of the proposal before its release, Hatcher said transport secretary Louise Haigh had been informed through new maritime minister Mike Kane.
Hatcher added: “We were keen to start the conversation early. I’m very keen to step away from an ‘ask and demand’ focused relationship with the government and turn it into more of a partnership/offered-based relationship. It’s our role to engage with the government on behalf of our members.”
It is not clear if this level of investment is likely to be included in the upcoming Budget this month, or next spring.
Hatcher said: “The best we can do is provide the most up-to-date information with supporting logic. I can’t help thinking there’s got to be some adjustments in government.”
Hatcher also referred to Haigh’s earlier pledge that maritime was at the heart of the economy and the new government’s plans.
“Given they are only three months in, there is still a lot of thinking going on and they are showing that. Though they’re not promising things just yet,” he added.
The revision of the Clean Maritime Plan, is a key component of the chamber’s investment proposal. In her speech at Shipping UK, Haigh also indicated that concrete plans would be made ‘soon’.
In response, Hatcher said: “They are keen for us to understand that they are looking at it. While she did not say when [the revision will occur], she did say that it is a priority for her department.”
Hatcher also outlined that the chamber has volunteered to work with the government on updating the now outdated plan.
“I’m really keen for us to contribute to that so we can help deliver it. We would welcome a multi-year framework. This is one heck of a journey, and it’s only going to be delivered if we are able to collaborate with the government,” he added.
The chamber would at least require an entire government administration to follow through with the plan, but ideally longer.
“We really try hard to be the single voice of the industry. It’s quite hard to do that without having a single plan for things as important as this,” Hatcher concluded.
