EUROPE needs to recognise the growing global competition and the urgent need to strengthen its green shipping sector before falling behind. Denmark is a small country, but a maritime superpower. We are among the world’s 10-largest shipping nations, measured by operated tonnage. So naturally, we have a special interest in the world of shipping.

The question of green energy and greener fuels is especially pertinent. The whole idea of global shipping becoming climate neutral by or around 2050, as agreed upon by the 176 member states of the International Maritime Organization, is dependent on the accessibility of green fuels to replace the 200m+ tonnes of fossil fuel that the shipping industry consumes each year.

No green fuels, no green transitions on the seas and oceans. To put it very bluntly.

We have a strong tradition of working closely with global partners through international organisations. This approach remains essential in achieving our ambitious climate goals. Our future efforts within the IMO and the EU will be crucial.

The willingness among European shipowners to invest in new green ships is present, but the industry is at a standstill because alternative fuels are not available at the volumes required. It is therefore crucial that Europe prioritises the production of green fuels. Unfortunately, the green transition and important green projects are facing headwinds in Europe. Several major energy projects are on hold, and huge barriers hinder efforts to scale up the production of green fuels.

Member states must address this issue if we are not to fall behind countries such as China, which has long since prioritised and scaled up production.

This is also clearly highlighted in a new report by Macro Advisory Partners. China will play a vital role in the future of global shipping and trade. This underscores the importance of avoiding naivety and instead striking the right balance in our relations with China.

This really is the crux of the matter: if Europe does not invest significantly in the production of green fuels this will become an area where we will become wholly dependent on others.

China is our foremost competitor in the world of shipping. It has achieved remarkable progress very quickly. In a relatively short time, China has become one of the biggest shipping nations in the world. Chinese shipyards build a significant portion of the world’s new ships, China is at the forefront of innovative maritime technology and finance, and Chinese companies are controlling an ever-increasing number of key ports around the world.

China is a huge producer of the technology and components needed to build a green economy and a green energy system. This is apparent, when looking at the manufacturing of solar panels and windmills for example. It is also becoming equally obvious with regards to the production of new alternative, greener fuels such as green methanol.

Therefore, China is no longer “only” the world’s factory. China is also well on its way to becoming a leading actor in the transformation away from fossil fuels.

Nevertheless, this is also a moment of opportunity for Europe. The outlook for green energy projects in the US may seem dire now. It is time for Europe to invest and move forward. We must make a green European future happen and not just wait for others to lead the way.

Companies are eager to get started. But they need help. They need simpler procedures to get innovation funding. And they need more transparent procedures. We need to speed up the process.

Recent events like the Covid pandemic, and the Houthis’ ability to more or less block important shipping routes through the Suez, have shown us the strategic importance of secure supply chains.  For this to happen, we need to maintain a strong European shipping sector. The key is access to green fuels independent of China and other competitors.

European Commission president Ursula von der Leyen underlined the urgent need for significantly improved European innovation, efficiency and competitiveness in her recent speech at the World Economic Forum in Davos. The Draghi report on the EU’s competitiveness reaches very similar conclusions. A key part is our own production of sustainable fuels. Otherwise, the EU will fall behind in the global context.

We need action. We need to get on board now.