SHIPPING AND LOGISTICS
Leading the Way in Sustainability
The Role of Shipping and Logistics in Greenhouse Gas Emissions
This sector plays a crucial role in global trade but is also a significant contributor to Greenhouse Gas Emissions (GHE).
The industry is responsible for transporting goods worldwide, and in doing so, it relies heavily on fossil fuels, primarily in the form of bunker fuel for ships and diesel for trucks.
These activities result in substantial CO2 emissions, contributing to the global carbon footprint and climate change.
Benefits of Shipping and Logistics Companies Investing in Carbon Offsetting
Government Policies, Regulations and Carbon Goals
In November 2021, the International Maritime Organization (IMO) adopted new regulations to reduce greenhouse gas emissions from international shipping. The regulations include a goal to reduce the carbon intensity of international shipping by at least 40% by 2030, compared to 2008 levels.
In October 2021, the European Union (EU) introduced a new regulation that requires ships calling at EU ports to monitor and report their carbon dioxide emissions from January 1, 2023.
Shipping and Logistics Offsetting Worldwide
To mitigate its environmental impact, the sector is adopting innovative technologies and practices aimed at reducing emissions. These innovations encompass alternative fuels, energy efficiency measures, advanced routing algorithms to minimize travel distances, and the development of electric vehicles for delivery services.
Maersk (DK)
A.P. Moller - Maersk aims to become carbon-neutral by 2050. The company is investing in renewable energy solutions, energy-efficient ships, and carbon offset projects. They are also exploring alternative fuels, including biofuels and hydrogen, to replace conventional bunker fuels.
FedEx (US)
FedEx Corp. has set a goal to achieve carbon–neutral operations globally by 2040. To get there, the company is investing in vehicle electrification, sustainable energy, and carbon sequestration initiatives. FedEx is designating more than $2 billion of initial investment in three key areas: vehicle electrification, sustainable energy, and carbon sequestration.
UPS (US)
UPS announced a goal to achieve net-zero carbon emissions across its global operations by 2050. The company plans to achieve this goal through a variety of initiatives, including the electrification of its delivery fleet and the use of renewable natural gas.
Maersk (DK)
A.P. Moller - Maersk aims to become carbon-neutral by 2050. The company is investing in renewable energy solutions, energy-efficient ships, and carbon offset projects. They are also exploring alternative fuels, including biofuels and hydrogen, to replace conventional bunker fuels.
Amazon (US)
Amazon announced a goal to achieve net-zero carbon emissions across its operations by 2040. The company plans to achieve this goal through a variety of initiatives, including the electrification of its delivery fleet and the use of sustainable aviation fuel.
Carbon offsetting and renewable energy investments are crucial shipping and logistics strategies for reducing their carbon footprint and fostering sustainability.
Sources:
- International Maritime Organization. “Greenhouse Gas Emissions from Shipping.”
- Maersk. “Climate.”
- FedEx. “Sustainability.”
- DPDgroup. “DrivingChange.”
- International Maritime Organization. “IMO adopts key mandatory measures to reduce greenhouse gas emissions from international shipping.”
- European Commission. “New EU rules for monitoring, reporting and verification of CO2 emissions from ships entering EU ports.”
- Amazon. “Climate Pledge.”
- UPS. “Sustainability.”