SIMIC

Separately, veteran observers say seldom if ever does a leading company urge a sector-wide tax, such that would drive up environmental compliance costs to where all but the biggest firms will be driven out of business.

Maersk's eco advisor Concepcion Boo Arias says the only way to lower greenhouse gas emissions in shipping is by setting a date for the end of fossil fuel use through a global regulation.

"It is very important to get global regulation in place. Investments only come when regulation is in place," Ms Arias said. She was speaking during an IMO side event marine fuels at the recent COP27 (United Nations Climate Change Conference or Conference of the Parties) at Sharm El Sheikh, Egypt.

Aside from setting a date for an end of fossil fuels use, a global carbon tax, global fuel standards, and instruments are needed to make the global energy transition, she said.

Maersk has been urging the IMO to put in place a market-based tax by 2025 to create a fund that could be used to help developing countries.

Speaking of Maersk's decarbonisation efforts, Ms Arias pointed to the company's investments in vessels powered by green methanol, noting that the main challenge at the moment is to increase its production.

Maersk has in total ordered 19 vessels with dual-fuel engines able to operate on green methanol. The container shipping heavyweight said that when all 19 vessels on order are deployed and have replaced older vessels, they will generate annual CO2 emissions savings of around 2.3 million tonnes.