Shipping at Risk in the Strait of Hormuz

The current crisis is costing shipping millions per day, highlighting why we must accelerate the sector’s decarbonisation.

The Hormuz Strait crisis is costing the shipping industry €340 million a day,  demonstrating the industry’s vulnerability to oil and gas price volatility.

Green measures would reduce the shipping industry’s exposure to fuel price shocks in future.

T&E makes the following recommendations for European policymakers to accelerate the transition towards a more sustainable and resilient maritime industry:

• Make all reasonable efforts to reduce dependence on fossil fuels: Electrification and efficiency measures offer immediate cost savings and long-term protection against geopolitical shocks.
• Support the deployment and uptake of e-fuels in shipping: Only green e-fuels can be scaled sustainably in Europe, and strengthen European shipping’s sovereignty and resilience. Accelerating their deployment and uptake should be the top priority.
• Leverage ETS for shipping to drive decarbonisation investments: The Emission Trading System (ETS) is an essential tool to reach EU climate targets and internalise the costs of emitting GHGs. It should be maintained and strengthened to ensure a carbon price that shifts investment away from fossil fuels, unlocks long-term industrial investment and reduces exposure to supply disruptions. The ETS generates significant revenues, a share of which should be used to support the production of e-fuels in the EU.

Download full briefing. Article from T&E.