“At Odfjell, we do not specifically use the term ‘Cost of Clean.’ However, the investments and actions required to comply with regulations and achieve our climate objectives naturally involve associated costs as well as opportunities,” Øistein said.
He added that Odfjell’s climate risk model goes beyond direct financial considerations. It includes reputational risks, the risk of stranded assets, technological uncertainties, and even our ability to attract and retain talent.
We continue to invest in energy efficiency as our first line of action. This includes vessel retrofits such as propeller and gear upgrades, propeller boss cap fins, and wind-assisted propulsion systems. Operational initiatives like route optimization and digital decision-making tools further strengthen our efficiency efforts.
“To comply with frameworks such as FuelEU Maritime and the upcoming IMO Net Zero strategy, we anticipate increasing our use of biofuels,” Øistein said. “The future fuel is going to be more expensive, and the cheapest fuel is the fuel we do not use.”
While efficiency investments are absorbed internally, compliance-related costs such as those under the EU Emissions Trading System (EU ETS) are passed on to customers.
“It is crucial that cost-sharing mechanisms incentivize shipowners and operators to proactively reduce emissions, while simultaneously motivating cargo owners to select transportation providers who achieve lower regulatory costs through effective sustainability measures,” Øistein explained.
Odfjell’s strong sustainability track record provides an advantage in financial markets. Through two Sustainable Finance Frameworks, Odfjell links financing terms directly to our decarbonization targets. This alignment also strengthens our partnerships with financial institutions that are signatories of the Poseidon Principles.
Decarbonization is complex and costly, but essential. By combining energy efficiency, future fuel strategies, and sustainable financing, Odfjell is preparing for a low-carbon future. We are strategically balancing compliance, costs, and long-term competitiveness.
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