Shipping industry urges EU to support green transition by investing in Africa

Trade and employer association Danish Shipping has urged Denmark and the EU to intensify investments in Africa, reflecting on the continent’s ‘enormous potential’ for both green energy and economic growth.

The Danish government’s new Africa Strategy offers significant opportunities for closer cooperation in trade, sustainable development, and renewable energy. Therefore, Danish Shipping supports the strategy’s overall objectives and simultaneously calls for a more concrete approach, especially concerning financing and trade.

“Africa has massive potential for renewable energy, which can play a key role in the future of green fuels for shipping. If we are to ensure the green transition, it is crucial that we strengthen cooperation on the development of these energy sources,” Anne H. Steffensen, CEO of Danish Shipping, commented.

Danish Shipping also sees great potential in the EU’s Global Gateway initiative, which aims to promote investments in critical infrastructure, including transport and port facilities, as well as the establishment of green corridors along shipping routes around the African continent. The shipping industry urges Denmark and the EU to support this initiative with more concrete financing plans that can ensure economic growth and create more jobs in both Africa and Europe.

“Global Gateway is a strong framework for investments, but we would like to see both Denmark and the EU commit with more concrete resources so that we can achieve real results. This will not only strengthen Africa’s economy but also create new opportunities for European companies,” H. Steffensen added.

Danish Shipping also emphasized the importance of reciprocity in cooperation with African countries. For Europe to be Africa’s preferred trading partner, it is necessary to avoid protectionist measures that hinder collaboration.

“We can contribute to growth and employment in Africa, but it requires our African partners to avoid protectionist measures such as trade barriers – this would complicate collaboration. Reciprocity must therefore be a central part of our future partnerships,” H. Steffensen pointed out.

The trade association also stressed that the cooperation should be beneficial to both parties.

“If we want to bring Africa closer to us – both geopolitically and economically – we must ensure that African countries also see an improvement in their prosperity. And here, cooperation on green energy has enormous potential, as it can turn more African countries into net exporters of green fuels, which shipping will depend on,” Danish Shipping Director General and CEO continued.

For Danish Shipping, maritime security is also an important part of the collaboration, and they look forward to strengthening trade, security, and the green transition in the region through close dialogue with African partners.

Last year, the Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping, the U.S. Department of State, the U.S. Department of Energy, and the Danish government joined forces to resource and execute pre-feasibility studies for green corridors in five countries in the Global South. The project aims to support sustainable green growth and job creation in developing countries by identifying and supporting the development of green corridor projects. 

In order to achieve a full decarbonization until 2050, advanced economies would need to deepen their engagement with developing countries to overcome a new “North/South divide’ and to make even the pace of the global energy transition.

The Global South – which comprises Africa, Latin America, the Caribbean, Asia and Oceania, has been rezognized as a promising market for green fuels. By implementing the concept of green shipping corridors, countries in the Global South could be supplying much-needed green fuels to the developed countries of the Global North.