The decarbonization of shipping will undoubtedly lead to inflation, according to the CEO of the industry.

• The carbon tax known as the European Union's Emissions Trading System will be implemented in the shipping industry from January 2024.
• According to Bertrand Chen, CEO of the Global Shipping Business Network, speaking at CNBC's East Tech West conference, moves like that will have an "inflationary impact."
• Chen suggested that blockchain technology could assist the shipping industry in verifying its eco-friendly initiatives.

According to a maritime industry CEO, the cost of decarbonizing the shipping industry will result in a ripple effect on consumers.

Bertrand Chen, CEO of the Global Shipping Business Network, stated at the Nansha district of Guangzhou, China's CNBC's East Tech West conference that there will be an inflationary impact resulting from the decarbonization of shipping, and there is no doubt about it.

Effectively taxing shipping lines for their emissions would increase costs, according to Chen.

The EU government is imposing a cost on the shipping line, which means the shipping has to take action to decarbonize. This will impact all consumers, and it's a trade-off that people will have to live with.

Starting in January 2024, the European Union’s Emissions Trading System (ETS) will be extended to the shipping industry, requiring large ships entering EU ports to pay for their carbon dioxide emissions.

The ETS currently targets industries with high carbon emissions, such as mining and aviation, by imposing a cost on carbon.

The EU initiative, as described by Chen, is a "natural course of action" that will produce "some intriguing outcomes."

Alternative fuel

To prove that you are taking the correct action to decarbonize, you can observe that some individuals in the shipping line industry are investing in methanol ships and establishing investment funds to purchase alternative fuels, as it is challenging to obtain these resources. Some individuals are more passive and are waiting to observe the outcome.

In September, the shipping line launched its first vessel powered by green methanol as an alternative fuel, but analysts raised concerns about the availability of this fuel.

Proof is necessary for shoppers to be willing to spend more on items that have been shipped or produced in an eco-friendly way, as there is a high risk of greenwashing, according to Chen.

The need to prove the rightness of actions taken in a decarbonized world is not an easy task, as it is a question of time when everyone will have to become decarbonized.

Chen suggested that utilizing blockchain technology to store and grant access to legal and financial documents could aid the shipping industry in verifying proof.

During a meeting of the International Maritime Organization in July, maritime nations agreed to reduce emissions "around 2050."

— CNBC’s Silvia Amaro and Sam Meredith contributed to this report.