With increasing emissions regulations on the horizon, Danish shipping company Maersk Line has opted for a proactive approach. Learn more about the impending regulations and discover how Maersk Line has partnered with other global companies on environmentally friendly initiatives.
Situation: Global Shippers Expect Increased Emissions Regulations
The International Maritime Organization (IMO) currently oversees emissions regulations for the global shipping industry, but recent actions by the European Parliament suggest that the latter group may take steps to increase oversight. The European Union (EU) relies on a cap and trade principle known as the Emissions Trading System (ETS) to lower carbon emissions and combat climate change.
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The ETS doesn’t yet include shipping in its regulations, but the European Parliament recently voted to begin incorporating this industry into its regulatory practices. The EU would begin overseeing shipping in 2023 if the IMO does not institute a cap and trade or similar carbon emissions system by 2021. Global shipping companies have already begun preparing for required reductions in sulfur emissions in 2020, and many have started anticipating tighter restrictions on carbon emissions as well.
Approach: Maersk Line Targets Drastic Reduction in Carbon Emissions
Many forward-thinking companies have already begun to plan for decreased carbon emissions, but Maersk Line has announced one of the most significant plans. Using its 2007 carbon emissions as a baseline, Maersk Line has pledged to reduce carbon emissions by 60 percent for each container moved by 2020. By 2016, the company had already reduced its carbon emissions per container by 42 percent, putting its overall goal well within reach.
Maersk Line executives understand the impact that the shipping industry has on the health of the planet and the success of worldwide business. These are the primary reasons the company has sought partnerships with major vendors to help achieve its ambitious emissions goals.
The Danish shipping company recently signed a sustainability partnership agreement with AzkoNobel, a Dutch paint and coatings company, pledging to lower carbon emissions by 10 percent per container. The shipper signed a similar agreement with EQUATE Petrochemical Company, a Kuwaiti petrochemical producer, pledging to lower emissions by 15 percent per container. Maersk Line may announce more partnerships in 2017 as the company continues to fine-tune its approach to sustainability.
Impact and Advantage
Since Maersk serves as a supplier for both AzkoNobel and EQUATE, all companies involved have the potential to benefit. With results ranging from creating more efficient and transparent supply chains to establishing industry-leading emissions goals, these partnerships appear to be both effective and strategic.
The companies see nothing but positive results ahead. Responding to the partnership with EQUATE, Mohammad Shihab, Maersk Line’s Regional Managing Director states, “We are happy to contribute to EQUATE’s plans to reduce the emissions in the value chain, as well as to take our business relationship further through bringing more sustainability elements into procurement practices.”
Many global shipping companies may opt to wait and see how emissions regulations will change in the near term, but Maersk Line has already taken action. Its strategic partnerships with vendors are likely to continue to benefit the individual companies involved and lead the way for the shipping industry as a whole.[/show_to]
