The big wheel keeps on turning

In this sustainability report, we are happy to once again share information regarding our recent developments in ESG matters. A great deal of work has been completed, but as we learn more, new tasks emerge that require our further attention.

Currently, a large number of new environmental regulations concerning emissions from the shipping industry are in the final stages of preparation. Both the International Maritime Organization (IMO) and the European Union are expected to finalise their detailed emission reduction regulations in 2022. It is a pity that not all initiatives seem to be aligned and we are likely to see the creation of unforeseen regulation abbreviation jungle instead of a globally level playing field which reduces emissions.

Don’t get me wrong, since we absolutely are in favour of emission reduction and see the benefit in putting a price tag on shipping emissions. However, multi-layer regulations and geographical differences do not necessarily result in the reduction of emissions and increases in global transport efficiency.

We should not create such regulations or market-based measures for emission reduction, that may lead to the development of two-tier freight markets or the exclusion of a large proportion of shipping emissions. This is exactly what we would get by putting the threshold at the 5,000 GT vessel size; market distortion and carbon leakage. Everyone in the shipping industry should be in the same boat.

Regulating bodies should not forget about the geographical aspect either, taking into account our northern location. Despite the good and professional work of our government representatives at IMO, we are very concerned about how ice trading will be taken into account when defining the carbon intensity of shipping.

As one of the leading developers of sustainable shipping solutions, our position remains strong moving forward. With great respect, I wish to thank all our employees onboard and ashore, and all our clients across the continents, for your great, resilient work and support throughout these uncertain times.

Sincerely,
Mikki Koskinen
Managing Director