Vincent Clerc, the CEO of Maersk, believes that businesses in the EU that lead the way in adopting green energy and complying with stringent regulations are being penalized in the process.
“Some of the first movers have had first-mover disadvantage,” Clerc said of Europe. “That is very concerning for me. The regulatory framework is so important because it can really shorten this period . . . We’ve seen this in the US, in China,” Clerc said in an interview with the Financial Times.
In both the U.S. and China, companies that prioritize reducing their carbon footprint benefit from substantial government subsidies. For example, the U.S. has allocated $370 billion for green technology solutions through the Inflation Reduction Act. Reports suggest that China has set aside even more funds to support its green leaders.
Clerc is hopeful that the EU will take steps to protect European companies that are innovating and developing technologies aimed at reducing greenhouse gas emissions.
While the EU has introduced numerous regulations to drive green transformation, it has yet to create incentives to build “champions,” according to Clerc. He advocates for the establishment of a unified European financial market, which could help local companies enjoy economies of scale similar to those seen by businesses in China and the U.S.
Moreover, Clerc warns that Europe is “slowly losing out” when it comes to competitiveness, with European companies in the green energy sector increasingly facing financial difficulties and losing ground to firms from other regions.
“We would like to have Europe as a place where we continue to source talent, innovation, where we continue to sharpen our competitive edge, rather than to have to go and do it abroad and see Europe become a museum,” said Clerc.
As an example, Clerc points to a proposal from shipowners for the upcoming International Maritime Organization (IMO) meeting. The proposal includes the creation of a mechanism to support green fuels, known as the Green Balance Mechanism, to make these alternatives competitive with traditional fuels.
“If accepted, it can put Europe in the game,” Clerc said.
Maersk itself once championed methanol as a potential green fuel for ships. However, enthusiasm has waned recently, and the company is now focusing on LNG and bio-LNG due to high costs.
“No single player is big enough to say that I can solve this alone. There needs to be an alignment of incentives,” Clerc emphasised.
No change at Sea
Regarding the state of the global shipping market, Clerc does not expect a quick resolution to the crisis in the Red Sea. He predicts that by 2025, ships may need to reroute around Africa instead of passing through the Suez Canal.
Clerc also addressed the threat of dockworkers’ strikes at U.S. East Coast ports, warning that labor disputes could lead to further congestion at ports and additional strain on global supply chains.
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