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Amazon’s new net-zero carbon pledge is focused on the oceans, as shipping giants
pursue alternative fuels
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Amazon’s new net-zero carbon pledge is focused on the oceans, as shipping giants
pursue alternative fuels
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ESG Impact


AMAZON’S NEW NET-ZERO CARBON PLEDGE IS FOCUSED ON THE OCEANS, AS SHIPPING GIANTS
PURSUE ALTERNATIVE FUELS

Published Tue, Oct 19 20211:45 PM EDTUpdated Tue, Oct 19 20213:17 PM EDT
Alicia Doniger@aliciadoniger
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Key Points
 * Marine shipping accounts for 1 billion tons of carbon emissions per year,
   according to the Clean Air Task Force, which worked with the Aspen Institute
   on a new ocean transportation effort.
 * Amazon and IKEA are among the companies making a pledge to only use
   zero-carbon fuel ocean vessels by 2040.
 * New renewable sources of fuel such as marine ammonia will be required, and
   transitioning the shipping industry away from fossil fuels will require an
   “intense globally coordinated effort,” according to CATF.

For the marine shipping industry to cut its carbon footprint in half by 2050,
promising technology will need to become reality, and efficiency gains will need
to increase as well.
Lucy Nicholson | Reuters

Amazon and IKEA are among the major companies pushing the ocean shipping
industry to adopt zero-carbon fuel sources for vessels by 2040.

Marine shipping accounts for 1 billion tons of carbon emissions per year,
according to the Clean Air Task Force, which worked with the Aspen Institute on
a plan to accelerate a marketplace for zero-carbon shipping among the world’s
largest cargo ship owners. The announcement on Tuesday included other
consumer-facing companies such as Patagonia, Brooks Running, Inditex, Michelin,
Unilever, Tchibo, and Frog Bikes. The announcement did not include cargo
companies.



In 2018, the International Maritime Organization set an initial goal of cutting
carbon emissions from international shipping by at least 50% by 2050 compared to
2008.

According to Clean Air Task Force research, for the IMO to reach its goals a
large part of the international shipping fleet would need to transition to
net-zero-carbon fuels. CATF has cited ammonia as a likely option for marine,
though it noted that ammonia is approximately 3-7 times more expensive than
conventional marine fuel.

Its research also suggests liquified natural gas as a transition — but only
transitional fuel — and small-scale nuclear on-vessel as an underexplored option
for the future. It estimated that ships could change over to LNG use for a 15%
carbon reduction, but that figure would depend on methane leakage being reduced
“well below current levels.”

“In order to combat the climate crisis, we must rapidly decarbonize marine
shipping,” Jonathon Lewis, Director of Transportation Decarbonization at CATF
said in a statement announcing the consortium of merchants.

CATF stated in its research that U.S. shipping is responsible for 80 million
tonnes of CO2 emissions, a figure which is increasing, and for the U.S. shipping
fleet to meet the IMO 2050 deadline, use of marine ammonia would need to reach
as high as 47 million tonnes.



CATF proposes making marine ammonia from renewables (referred to as green
ammonia), nuclear power, or carbon capture and storage operations in industries
including fossil fuels (referred to as blue ammonia). But it noted that there is
still a long way to go to “make marine ammonia a reality.”

Current ammonia production has a carbon footprint, mostly from within the
fertilizer industry.

In March of this year, several of the major cargo companies including Maersk,
Fleet Management Limited, Keppel Offshore & Marine, Sumitomo Corporation and
Yara International began a study of a green ammonia supply chain at the Port of
Singapore.

“Emitting zero CO2 when combusted, ammonia has long been considered as one of
the most promising alternative marine fuels to reduce greenhouse gas (GHG)
emissions within the shipping industry,” the group said in a statement.

“So far, it is unclear which measures could achieve the emissions reduction
targeted by the IMO (much less, reductions that are consistent with the Paris
Agreement), but it is unlikely that it will be through technology alone,” CATF
wrote in its report on transportation decarbonization. And it said, “The shift
to ammonia will need an intense globally coordinated effort.”

IMO itself implemented a mandatory data collection system for fuel oil
consumption of ships in March 2018, and by 2025, set the goal of new ship builds
being 30% more energy efficient than those built in 2014, according to its
greenhouse gas reduction plan.

Over the last few years, Amazon has stepped up its commitment to reducing its
carbon footprint while it also has taken over more control of its massive
logistics operations. In 2019, Amazon first unveiled its pledge to meet the
Paris climate agreement goals through the use of renewable energy and new
transportation technology, such as electric delivery vehicles, 10 years ahead of
the Paris timeline.

Among its most notable carbon-free transportation investments is electric
vehicle maker Rivian, which has raised billions from venture investors including
Amazon. The retail giant plans to buy 100,000 electric vehicles from Rivian and,
by 2020, Amazon said it had already delivered over 20 million packages using
electric vehicles. The retail giant rolled out its custom electric delivery
vehicles earlier this year and says it will have 10,000 vehicles on the road by
2022.

Amazon’s own logistics footprint has grown in recent years to include direct
competition with third-party shipping services. By 2028, Amazon is predicted to
acquire 200 airplanes for its freight needs.

VIDEO16:2716:27
How Amazon is shipping for outside customers to compete with FedEx and UPS
Tech


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    Amazon and a Microsoft
    
 2. Tesla posts record earnings but on one market number it’s still
    disappointing
    
 3. Snap CEO Spiegel says social media companies must take responsibility
    instead of waiting for laws
    
 4. Automakers are spending billions to produce battery cells for EVs in the
    U.S.
    
 5. Peter Thiel’s luxury New Zealand lodge opposed by environmental group
    


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