By Anna Hirai, Legal & General Investment Management, and Andrew Howell, CFA, Environmental Defense Fund
Aligning the maritime shipping sector with the Paris Agreement’s 1.5°C target requires an all-hands-on-deck approach. This includes financial institutions, given the important role that finance plays in this asset-heavy sector.
Maritime shipping touches around 90% of globally traded goods and is responsible for close to 3% of global greenhouse gas (GHG) emissions. Rising demand for global freight means that maritime trade volumes could double by 2050, according to the International Renewable Energy Agency. Earlier this year, the International Maritime Organization (IMO) revised its GHG emission strategy to put the shipping sector on a path to net-zero emissions by, or around, 2050. This is a welcome step to accelerate the pace of industry decarbonization, even if…
Read the full article originally published at business.edf.org.