Seatrade Maritime News: From the perspective of a flag state what are the biggest challenges to achieve the decarbonisation of the shipping industry?
Nick Makar: Well, I think, of course, one of the main challenges is the available technology in order to enable the industry to reach the goals that are set forth by the IMO.
Seatrade Maritime News: How are goal-based regulations helping stimulate the innovation needed?
Nick Makar: So rather than moving from a prescriptive or a set way of approaching an issue, regulations are framed in a way that it identifies essentially, what standard needs to be met, but doesn't prescribe the means or the ways and how that standard is achieved. So a goal based regulation certainly gives a lot of latitude and flexibility and allows for taking creative approaches to comply with requirements.
For example, with the IGF code or the gas fuel ship code. This is a this is an industry standard. It's a code that's developed specifically for utilisation of low flashpoint fuels. But that code also has provisions within it to enable the development of alternative fuels.
Seatrade Maritime News: What will the costs and risks to the shipping industry of not responding fast enough to reduce greenhouse gas emissions?
Nick Makar: Certainly, one of the costs or one of the dangers of maritime not responding fast enough for not responding in line in a trajectory to meet those particular targets is that the longer the sector waits, or the slower it takes to begin to go down that pathway, the more severe and more stringent the requirements are going to have to become in the future in order to achieve those goals.
So, moving quickly and moving early is really essential to make sure that the industry is on the correct pathway. Knowing that of course based on latest information that's available and indications from other areas and sectors is that the levels of ambition of the initial strategy do need to be reviewed for their for their adequacy and ensuring a consistency with the temperature limits of the Paris Agreement.