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Spotlight 6 The Journal of Commerce | Februar y 3 2020 www.joc.com The cost of decarbonization The price tag for cutting shipping's greenhouse gas emissions 50 percent from 2008 levels by 2050 will be $1.4 trillion, or an average of $50 billion to $70 billion annu- ally for 20 years, according to the Global Maritime Forum (GMF). The international not-for-profit maritime lobby group said in late January its research showed that if shipping was to fully decarbonize by 2050, it would require further investments of $400 billion over 20 years, bringing the total to between $1.4 trillion and $1.9 trillion. Fortunately for vessel owners and operators, the vast majority of the expenses will be landside infrastruc - ture investment in new fuel production and supply Classification fight takes a turn The truck driver classification push received a blow on the California front but advanced somewhat in New Jersey. In granting a preliminary injunction in its lawsuit over Assembly Bill 5, a US District Court judge on Jan. 16 dealt a sharp blow to California's attempt to restructure the worker classification process for truck drivers. Judge Roger Benitez in the Southern District of California ruled that AB5 is preempted by existing federal statutes, namely the Federal Aviation Administration Authorization Act (FAAAA). "FAAAA preemption is broad but not so broad that the sky is the limit: states retain the ability to execute their police power with laws that do not significantly impact rates, routes, or ser- vices," Benitez wrote in his ruling. AB5, a controversial landmark bill with significant implications for how trucking companies classify drivers, especially in harbor haulage, was scheduled to take effect on Jan. 1. Benitez on Dec. 31 issued a temporary restraining order (TRO) carving trucking out of AB5, so drayage operators in the ports of Los Angeles, Long Beach, and Oakland have not been affected by the law. In another case involving AB5, People of the State of California v. California Cartage, Superior Court Judge William F. Highberger in late January ruled in favor of Cal Cartage, saying truck drivers cannot be bound by the standards codified in AB5 because the state legislation is preempted by federal law. In New Jersey, a half-dozen bills that could make it more difficult for owner-operator truckers and other independent contractors to retain their classification status were signed into law on Jan. 21. The laws will levy new penalties and even stop-work orders if the state rules a worker is not independent, but an actual employee. chains, with only 13 percent of the investment related to the ships themselves. The GMF said these investments include the machinery and onboard storage required for a ship to run on low-carbon fuels in new ships and in retrofits. "We need to understand the scale of the challenge to solve it. Shipping's shift to zero-carbon energy sources calls for significant infrastructure investments," Johannah Christensen, manag - ing director, head of projects and programs at the GMF, said in a statement. At the forum's recent annual summit in Singapore, maritime leaders proposed a global carbon levy to accelerate shipping's decarbonization, with the starting level for a carbon levy of $10 per ton of carbon dioxide (CO2) escalating to $50 to $75 per ton of CO2 by 2030. A price of $10 per ton of CO2 would correspond to an annual fund of $8 billion. A price of $75 per ton of CO2 would correspond The Journal of Commerce Executive Editor, The Journal of Commerce and JOC Events: Chris Brooks 609 649 2181, chris.brooks@ihsmarkit.com Executive Editor, The Journal of Commerce and JOC.com: Mark Szakonyi 202 872 1234, mark.szakonyi@ihsmarkit.com Managing Editor: Benjamin Meyer 916 716 6272, benjamin.meyer@ihsmarkit.com Associate Managing Editor: Kevin Saville, 212 488 4282, kevin.saville@ihsmarkit.com. Senior Editors: William B. 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