IKEA And Amazon Among Others Pledging To Use Zero-Carbon Marine Fuels By 2040

IKEA and Amazon.com are among the commercial container shipping users that will choose zero-carbon marine fuels by 2040 in a new initiative that aims to speed up decarbonization targets in the maritime industry. With nearly 90% of world trade transported via seas, global shipping accounts for about 3% of all CO2 emissions. The sector is also under scrutiny to become cleaner.

Amazon’s director for net-zero carbon, Edgar Blanco, said that the right time to make a move is now. The initiative, organized by the Aspen Institute, has nine signatories until now including Michelin and Unilever. It is setting a goal for enterprises to only avail of ocean freight services that are powered by no-carbon fuels by 2040.

Elisabeth Munck af Rosenschöld, Inter IKEA Group’s sustainability manager, also commented that collaborating with others was key to developing cleaner shipping fuels.

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Boston Consulting Group (BCG) has estimated that the shipping industry will require an investment of $2.4 trillion to achieve their target of zero emissions by 2050. The move will require swift development of low- or zero-emission fuels and new ship designs.

A rise in demand for all kinds of retail goods when individuals have been stuck at home owing to Covid-19 lockdowns has resulted in record container shipping rates over the recent months, coupled with port disruptions, resulting in higher cost for cargo users.

Michelle Grose, Unilever’s head of logistics, has reportedly said that logistics accounted for 15% of the group’s greenhouse gas emissions, and Unilever was encouraging the existing carriers to only opt for cleaner fuels. They further urged signatories to entirely switch to zero-emission ships by 2030.

Kendra Ulrich of Stand.earth said that if major global retail brands strongly wish to do their part about climate change, they must embark on a course correction now and not 19 years in the future.

Michael Field, Morningstar’s senior equity analyst, said that the pledge made by the companies was welcomed.

Field said that even though 2040 is a long time away, it still gets the ball rolling on investments in cleantech. Besides, it is also likely to encourage other large enterprises to follow suit, with more near-term commitments.

The UN strives to bring down the greenhouse gas emission in the maritime industry by 50% from the levels observed in 2008 by 2050, with calls for a target of complete decarbonization by 2050.

Reference: economictimes.indiatimes.com

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Source: Maritime Shipping News