coZEV Policy Goals and Formation of New Cargo Owner Policy Coalition

Climate-leading cargo owners have a vested interest in ensuring that the transition to zero emission shipping is smooth, fast, and economically viable. Robust policy support and regulatory action at the global, regional, and domestic levels is needed in order to foster a zero emission transition that is:

• Economically feasible at scale for cargo owners and other value chain actors

• Confidence building to stimulate necessary investment in zero emission fuels, vessels, and supporting infrastructure

• Globally equitable

Unfortunately, current policy measures are not yet sufficiently ambitious to support Paris Agreement 1.5°C-aligned decarbonization of the shipping industry.

Policymakers and regulatory bodies must act now to establish clear targets and policies that build confidence and provide unequivocal, implementable, and equitable pathways to fully decarbonize shipping in line with the Paris Agreement 1.5°C trajectory. Therefore, starting in 2023, coZEV policy-related efforts will focus on two important, initial goals:

1. Enacting global and domestic policies by 2025 that directly and indirectly incentivize zero emission shipping to become commercially viable by 2030 or before, including policies that close the cost and supply gap between scalable ZE fuels and high-emission fuels.

2. Ensuring adequate investment in infrastructure needed for widespread adoption of zero emission shipping.

To accomplish these goals, the following elements will also need policymaker attention:

• Enabling successful green shipping corridors;

• Promoting workforce development and retraining for work with zero emission fuels and technologies;

• Improving maritime emissions transparency;

• Continuously increasing and improving energy efficiency requirements;

• Establishing standards for lifecycle assessment, fuel certifications, and safety, among others; and

• Bolstering the supply of renewable energy necessary as a feedstock for sustainable zero emission shipping to rapidly come to scale.

In 2023, coZEV will form a new cargo owner policy coalition with the aim to inform decision makers about strategies and policy measures needed to achieve these goals. Primary decision making venues of focus will include the International Maritime Organization, United States, and the European Union.