– Urges stakeholders to examine the costs

-by Jordan Alkins

President Irfaan Ali has cautioned the region against backing global shipping policies without first knowing what they will cost it. 

He was at the time addressing the Caribbean Shipping Association’s 56th Annual General Meeting and Conference at the Marriott in Georgetown.

Net zero is the global goal of cutting carbon emissions, and shipping is being asked to get there too. 

However, President Ali says the Caribbean must weigh for itself what getting there will cost the region – from delivering clean fuel to choosing which fuel to use – before backing global policies. 

He says Guyana is well placed to speak on net zero, as one of the biggest contributors to it, adding that theconversation must, however, move beyond the conference room.

“But this net zero conversation must not just be a sexy conversation for a room. It must be a practical conversation. And we in the Caribbean must understand the consequential effect of this conversation and the implications of this conversation,” he said.
President Ali noted that an estimated two trillion US dollars will be needed globally up to 2050, not for new ships, but to land, store and deliver clean fuel. 

This he says raises several questions, including who will pay, and how disproportionate a share the Caribbean could carry if a new capital cost is created to meet a global requirement.

He also cited estimates showing that complete decarbonization could initially raise annual marine fuel expenditure by 70 to 100 percent.

“That is the reality. That is not to say we don’t go on a decarbonizing drive, but that is to say, we must have a full understanding as to what this means for our sector in this region,” he said.
President Ali identified uncertainty over fuel choices as another challenge, with biofuel, green methanol, green ammonia, hydrogen, battery electricity and LNG all facing questions about production, cost and availability.

He is therefore urging delegates to contribute to independent analysis of the full shipping ecosystem, so the region can make informed policy choices that protect both the planet and its businesses.