AP Moller-Maersk has said it aims to reach carbon neutrality by 2050 in a move aimed at accelerating the transition to carbon neutral shipping.

To achieve this goal, the world’s largest container line said carbon neutral vessels must be commercially viable by 2030.

It argues that there is also a requirement for an “acceleration in new innovations and adaption of new technology”.

“We will have to abandon fossil fuels. We will have to find a different type of fuel or a different way to power our assets,” Soren Toft, Maersk’s chief operating officer, told the Financial Times.

“This is not just another cost-cutting exercise. It’s far from that. It’s an existential exercise, where we as a company need to set ourselves apart.”

Toft said the only possible way to achieve the so-much-needed decarbonisation in the shipping industry is by “fully transforming to new carbon neutral fuels and supply chains”.

Given the 20-25-year life time of a vessel, it is now time to join forces and start developing the new type of vessels that will be crossing the seas in 2050, Maersk said.

Shipping subsidies should be used for positive change

“The next 5-10 years are going to be crucial. We will invest significant resources for innovation and fleet technology to improve the technical and financial viability of decarbonised solutions,” said Toft.

Over the last four years, he says the shipowner has invested around $1bn and engaged over 50 engineers each year in developing and deploying energy efficient solutions. But he adds that going forward Maersk "cannot do this alone".

“Research and development is key to take the industry away from today’s fossil based technology and by setting this ambitious target, Maersk hopes to generate a pull towards researchers, technology developers, investors, cargo owners and legislators that will activate strong industry involvement, co-development, and sponsorship of sustainable solutions that we are yet to see in the maritime industry,” he said.

In 2019, Maersk says it is planning to initiate open and collaborative dialogue with all possible parties to tackle together one of the most important issues in the world; climate change.