<Report from COP28 @ Dubai>
Announcement of a joint statement with Maersk on decarbonization in the Shipping Industry

December 08, 2023

Mitsui O.S.K. Lines, Ltd. (President: Takeshi Hashimoto, Headquarters: Minato-ku, Tokyo, hereinafter referred to as "MOL") participated in the 28th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP28) held in Dubai, UAE from November 30 to December 12, 2023. MOL exhibited the Next-Generation Wind Powered Vessel WIND CHALLENGER and the ultimate zero-emissions seagoing vessel Wind Hunter at the Japan Pavilion hosted by the Ministry of the Environment (note1). In conjunction with the COP, the Company's executives, including President Hashimoto, spoke at various events hosted by various companies and organizations at Blue Zone.

In conjunction with COP28, a statement was released on the official website of the World Economic Forum and A.P. Moller Maersk, one of the world's largest container shipping companies, on the decarbonization of the shipping industry. The full text can be viewed here.

[Statement Summary]
Bridging the price gap between clean alternative fuels and fossil fuels is key to decarbonizing the shipping industry

It is estimated that the cost of converting renewable energy into a form that can be used as fuel on ships, is three to four times higher than conventional fossil fuels. Fuel costs account for about 30-50% of operating costs, and this price difference is a barrier to the decarbonization of the shipping industry.
There is no singular zero-emission fuel alternative that can satisfy the volume of bunker fuel that is used today. The maritime industry is a melting pot of participants with an extreme diversity of attributes, and different solutions need to be nurtured with different partners for the decarbonization of all types of ships. To decarbonize, the industry is dependent on scaling the production of zero-emission (green) fuels like ammonia, methanol, hydrogen and also battery to deploy and power zero-emission vessels. Support from within and outside the industry, including the government, and their policy are important to correct the price difference and promote the stable supply of various clean alternative fuels.

At the "TIME 100 Impact Dinner" hosted by TIME magazine, where international organizations and companies from various countries gathered, President Hashimoto gave a speech on future global warming measures. Hashimoto emphasized that "we need to develop many new technologies" to transition to clean energy.

During this event discussing the importance of Transition Finance, hosted by the Ministry of the Environment and the Glasgow Financial Alliance for Net Zero (GFANZ), President Hashimoto argued that multiple pathways are needed to decarbonize the shipping industry, which underpins various supply chains. He advocated for a phased investment approach, including ① immediate investment in LNG and methanol, which can be implemented right away, and ② investment in fuels such as ammonia and hydrogen, which require technological development.

CESO's Watanabe attended at the Norway Pavilion-sponsored events "Accelerating the green maritime transition – the fuel conundrum" and "Clean Ammonia as A Global Pathway to Keep the 1.5°C Goal in Reach". Over the course of two days, Watanabe CESO, took the stage at these events. He explained MOL’s strategy and efforts regarding the introduction of clean alternative fuels. On the first day, he discussed the challenges facing the maritime industry in decarbonization, and on the second day, ammonia fuel with the other participants (note2).

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(Note1)
For details, please refer to the following company press release dated October 4, 2023.
MOL is Only Shipping Company to Exhibit at the COP28 Japan Pavilion - Exhibiting 'Wind Challenger' and 'Wind Hunter,' Technologies Using Wind Power to Propel Vessels -

(Note2)
participants of each 1st day and 2nd day
-Day 1-
Remi Eriksen (CEO, DNV),
Vibeke Rasmussen (SVP, Yara Clean Ammonia, Yara International),
Tone Lunde Bakker (CEO, Export Finance Norway),
Rob van Riet (Head of First Movers Coalition, World Economic Forum),
Jesper Kristensen (Group Global COO, Marine Services, DP World),
Uwe Lauber (Chief Executive Officer, MAN Energy Systems),
Tatsuro Watanabe (Chief Environment Sustainability Officer, Mitsui O.S.K. Lines)
-Day 2-
Svein Tore Holsether (CEO and President Yara International),
Tiffany Vass (Energy Analyst International Energy Agency),
Tatsuro Watanabe (Chief Environment Sustainability Officer, Mitsui O.S.K. Lines),
Andreas Enger (CEO Hoegh Autoliners),
Rob van Riet (Head of First Movers Coalition, World Economic Forum)

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MOL Group 5 Sustainability Issues
MOL Group identifies "Sustainability Issues" (Materiality) as our key issues for sustainable growth with society through realization of the Group Vision.
We anticipate this initiative to contribute especially to the realization of "Environment – Conservation for Marine and global environment –".