How to clean up the world's dirtiest industry | Joojin Kim

Joojin Kim argues that decarbonizing the shipping industry could significantly impact climate change, as shipping would rank as the sixth largest greenhouse gas emitter if it were a country. He identifies three major climate issues tied to shipping: the fossil fuels it transports, the dirty fuels it consumes, and the coal-based steel used in ship construction.

East Asia, particularly South Korea, plays a pivotal role in global shipbuilding and steel production, as well as in financing these industries. Kim emphasizes that East Asian economies must choose between continuing to fund fossil fuel projects or transitioning to cleaner alternatives. In 2022, South Korean government banks provided over $10 billion in financing for liquefied natural gas (LNG) ships, which are crucial for the global LNG trade.

The technology for LNG ships is concentrated among a few companies, creating a significant political and financial bottleneck. However, Kim points out that the technology for clean steel and green shipping fuels is already available, though the necessary supply chains and demand are currently lacking. He predicts that with the right strategies, it is feasible to eliminate up to 2.2 gigatons of emissions annually by 2032.

Efforts to clean up maritime shipping are underway, including initiatives aimed at blocking investments in coal-based steel and supporting hydrogen-based steel mills. The "Navigate to Clean" initiative seeks to transform shipping from a facilitator of dirty trade to a promoter of clean trade. Kim draws parallels between current decarbonization efforts in shipping and past initiatives focused on coal.

Elise Hu highlights the shipping industry's significant contribution to climate change through its reliance on steel and gas. She expresses enthusiasm for Kim's work and the potential for broader climate solutions inspired by these efforts. Hu acknowledges that Kim and his team are uncovering critical aspects of the shipping industry that have often been overlooked, while also noting that the insights shared may challenge existing perceptions about the sector.