With so much of international trade dependent on ocean transport, decarbonisation of shipping is a crucial element of any net zero supply chain. Growing focus by a variety of stakeholders of supply chain emissions is becoming a powerful pull factor, as shipping customers step up demands for action.
Cargo Owners for Zero Emission Vessels (CoZEV), for example, brings together several multinational companies, including Amazon, IKEA and Unilever, with the aim of using only zero-carbon ocean freight transport by 2040.3 Investors, financiers, employees and the general public are also pressing for change.
Logistics companies are also on board. DHL, among others, is allowing customers to select routes powered by sustainable marine fuel.4
HSBC’s Transition Pathways research highlighted the steps logistics companies are taking to tackle scope 3 emissions – which include transport-related emissions in their value chain: 44% are using procurement policies, and 48% are incentivising their business partners.
Regulators are also turning up the heat. The European Union announced a preliminary agreement in November last year to extend its Emissions Trading System to cover shipping. Under the plan, starting from 2024, ship operators would have to pay for the greenhouse gas emissions generated during their voyages to, from and between EU ports.