Major global firms to push for fossil fuel phase-out at COP28 summit
A call from 131 companies with nearly $1 trillion/year in combined revenues to phase out fossil fuels could also give tailwind to efforts to drive up demand for alternative marine fuels.
PHOTO: Getty Images
With just over a month to go before the crucial COP28 climate summit in Dubai, 131 companies across multiple industries have urged COP28 participants to facilitate the shift away from fossil fuels and towards clean fuels. GHG emissions should be halved by 2030 and completely eliminated by 2050, they say.
“Our businesses are feeling the impacts and cost of increasing extreme weather events resulting from climate change,” an open letter from the companies reads.
“We recognize the need to transition in a way that safeguards our future collective prosperity on a liveable planet. That means reducing our emissions, adopting clean solutions and reducing our use of fossil fuels to limit global heating in line with the Paris Agreement’s ultimate goal of 1.5°C.”
The signatories include Danish wind energy major Ørsted, Spanish renewable energy producer Iberdrola, Swedish marine equipment manufacturer Alfa Laval, Swedish retailer IKEA, pharma major AstraZeneca, consumer goods companies Unilever, Nestle and Godrej, automobile giants Mahindra and Volvo, and others.
They urge fossil fuel producers to shift investments away from fossil fuels and towards clean fuels. They call on governments to take urgent policy actions, and on financial institutions to collaborate with companies to increase investments in renewable energy sources and energy efficiency measures.
“Policy certainty will allow businesses to develop affordable and reliable near-term alternatives to fossil fuels for their operations and supply chains,” the letter says.
The letter does not specifically mention the shipping sector, but ships that use alternative forms of energy stand to benefit from a more well-developed global renewable energy system.
Some of the signatories, like IKEA, Unilever, Philips and Frog Bikes, are already part of the Zero Emission Buyers' Alliance (ZEMBA) that aims to encourage use of greener marine fuels and carbon-reduction technologies through cargo shipping services with a low- to zero-carbon footprint.
Further support from industry giants for a fossil fuel phase-out is likely to serve as an additional incentive for suppliers and ports to make low- and zero-carbon marine fuels - such as green hydrogen, green ammonia and bio- and e-methanol - widely available and globally accessible. It will also encourage governments to strengthen their regulatory and financial support to endeavours to develop of net-zero fuels and technologies across the world.
“We urge all governments to set targets and timelines for the phase-out of unabated fossil fuels in line with 1.5°C, supported by national plans and policies to ensure a just transition for affected workers and communities. Wealthier countries have the responsibility to be first movers and support other countries in their efforts,” the letter says.
Several of the signatories are already investing in or promoting green bunker fuels as fossil fuel alternatives.
Ørsted is building a 50,000 mt/year e-methanol production plant to produce methanol for bunkering. Iberdrola is developing a green shipping corridor between Spain and the Netherlands and promotes use of green hydrogen and green ammonia as marine fuels.
Advocating for green fuels on a global scale, like COP28, could create ripple effects with other market players following suit with investments in green fuels to make them more widely available for the maritime sector.
The letter also calls on governments to support Global South countries in “diversifying their energy systems” and develop 1.5°C-aligned economic pathways. The financial provisions for this must be earmarked specifically for the green transition, without adding to their “unsustainable sovereign debt".
By Konica Bhatt
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