Canadian Consumers Ready to Pay Extra for Decarbonizing Shipping: Survey Reveals
Key Ideas
- UNCTAD estimates decarbonizing ships by 2050 will cost $8-28 billion annually, posing a major challenge for the shipping industry.
- Survey in Canada shows 64% of consumers are willing to pay up to 5% extra on shipped goods to contribute to decarbonizing merchant shipping.
- Younger Canadians and women are more inclined to pay extra to reduce shipping emissions, according to the survey.
- 67% of Canadians prefer using hydrogen domestically for decarbonization, supporting Canada's comprehensive hydrogen strategy.
The shipping industry faces a significant challenge in transforming its fuel supply to achieve net zero emissions by 2050, as estimated by the United Nations Trade and Development (UNCTAD). The cost of decarbonizing ships is projected to range between $8 billion and $28 billion annually, with additional expenses for infrastructure. To tackle climate change, shipping lines, governments, and port authorities are urged to invest in decarbonization measures, prompting the question of consumer willingness to pay for emission reduction. A recent survey in Canada illustrated that 64% of consumers are willing to pay extra on shipped goods to contribute to decarbonizing merchant shipping, with younger demographics and women showing higher readiness. The survey also revealed that most Canadians consider marine shipping crucial to the economy and support the industry's growth over the past two decades. Notably, 67% of surveyed Canadians prefer using hydrogen domestically for decarbonization purposes, aligning with Canada's hydrogen strategy focusing on production, usage, and export of low-carbon hydrogen and associated technologies. Canada already has over 80 low-carbon hydrogen projects in development, indicating a strong commitment towards sustainable fuel sources.
Topics
Investing
Economic Impact
Shipping Industry
Hydrogen Strategy
Consumer Willingness
Decarbonization Measures
Latest News