Countdown to COP: Maritime

Watson Farley & Williams is delighted to launch episode three of our ‘Countdown to COP: Financing and Fuelling the Future’ podcast series. This week, host Mhairi Main Garcia sits down with Singapore Maritime Finance Partner Lizzie Roe, a key contributor to our 2023 The Sustainability Imperative Part – 2 thought leadership report.

Despite a clear desire to meet net zero targets across the maritime sector, only 28% of industry participants interviewed in The Sustainability Imperative - Part 2 will meet these targets in the next five years. In this episode, Mhairi and Lizzie discuss two key challenges facing the sector, namely technological and regulatory uncertainty, and the positive steps being taken to rectify these.

In July of this year, the IMO unanimously adopted the 2023 Strategy on Reduction of Greenhouse Gas Emissions from Ships which effectively targets net zero greenhouse gas emissions by 2050. Another key development is the inclusion of shipping in the EU’s emission trading system as of 1 Jan 2024. There is also a real focus on alternative fuels with a shift away from the perception of LNG as an ‘alternative fuel’ and an increasing adoption of biofuels, with much debate surrounding the best green fuel and the perceived safety, commerciality and longevity of any of the current solutions.

Ultimately, maritime is a sector making impressive strides toward achieving net zero targets, but with an estimated US$1-1.5tn in funding required to decarbonise, investment is required from governments, banks and alternative investors alike.

Lizzie is a Partner in the Asset & Structured finance team. She regularly advises clients on project and asset financings, leasing transactions, tax-driven structures and on a variety of commercial maritime and aviation documentation.

To discuss any aspect of this episode further, please do reach out to Mhairi Main Garcia, Lizzie Roe or your usual WFW contact. And to sign up to receive all forthcoming episodes of this podcast series, please click here.

The information provided in this episode is for general and illustrative purposes only and is not intended to provide advice, please see here.