The container shipping line has launched a climate protective transport option called “Green Shipping”. It is based on biofuel and part of the company’s digital strategy. The product is accessible from anywhere, at any time, and requires no long-term commitment from customers. At the same time, the State of California has passed a regulation requiring train operators to put 2030 or later built locomotives on the tracks with zero-emissions configurations.
Customers can select three options
“Ship Green” is a new option for climate friendly maritime transportation introduced last week by Hapag-Lloyd. The product allows customers to choose between different levels to either totally avoid or at least reduce CO2 emissions when booking goods with Hapag-Lloyd. The scheme’s ranks are 100% 50%, or 25%. The different “Ship Green” offerings can be booked via the Online Business Suite on Hapag-Lloyd’s website.
The product is based on biofuel, thus replacing or lowering the burn of conventional marine fuel oil within the maritime company’s fleet. Hapag-Lloyd management assures that this biofuel stems from 2nd-generation feedstock sourced from certified supply chains and produced from waste material, such as brown grease or used cooking oil. It further stresses that no edible virgin oils are included in the fuel. The avoided emissions are allocated to shipments with the so-called “book and claim” approach, meaning that Hapag-Lloyd can attribute avoided CO2 emissions to all ocean-leg transports regardless of the vessel and route used.
Starting with dry cargo
Though, in its initial phase, “Ship Green” is only available for dry cargo, it will be expanded to other cargo types in the future, the shipping line announces. “At Hapag-Lloyd, we are committed to making it easier for our customers to avoid emissions and contribute to decarbonization. With our new ‘Ship Green’ solution, we are offering our customers an easy and flexible way to reduce their environmental footprint and make their supply chain more sustainable,” says Rolf Habben Jansen, CEO of Hapag-Lloyd. Customers opting for “Ship Green” will be handed an emissions avoidance declaration at the end of each quarter, verifying the total emissions prevented through the product in the given period.
Carbon emissions are becoming increasingly expensive
In the recent past, Hapag-Lloyd successfully tested climate-friendly transportation by means of biofuel supported by selected customers. The outcome of these trials demonstrated the scalability of sustainable transport solutions. Reducing greenhouse gas emissions is also in the interests of customers, as it reduces their carbon footprint. In addition to the benefit for the climate, there will also be a financial incentive. This is because the revised EU Emissions Trading System (ETS), proposes a linear emissions reduction factor from currently 2.2% per year to 4.2% come 2030, compared to 2005 levels, including the maritime sector. This stiffer scheme could become quite expensive for hesitant companies if they do not adapt their business models to the new specifications.
Net zero locomotives
Over in California, the Air Resources Board (CARB) of the U.S. State accorded a bill to move away from diesel locomotives toward “zero-emission configurations”. The new rules have two notable deadlines: Cargo and passenger locomotives built in 2030 or after, will need to operate these eco-friendly configurations within California, while locomotives built in 2035 for freight linehaul operations over longer distances, will need to comply with the zero-emissions configurations beginning then. “Locomotives are a key part of California’s transportation network, and it’s time that they are part of the solution to tackle pollution and clean our air,” CARB Chair, Liane Randolph said in a press release.
She went on to say: “With the new regulation, we are moving toward a future where all transportation operations in the state will be zero emissions.”
However, the freight rail industry remains skeptical and points at unresolved issues which would make compliance with the new rules challenging: “Neither the technology nor the infrastructure is ready for this rule,” reads a statement.
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