Maritime transport is integral to global trade. Without the maritime industry, global trade would be severely diminished. Because of its indispensable role, regulators worldwide have been studying how to reduce greenhouse gas emissions from the maritime sector as part of a broader campaign to combat climate change. Indeed, the European Union already requires the European maritime sector to join the EU emissions trading system (EU ETS), which calls for the sector to participate in the EU’s broader effort to slash GHG emissions by 55% by 2030 and become climate-neutral by 2050.
Whether shippers have significant business in Europe — and, by extension, fall under the EU ETS — they face increasing pressure to adopt sustainable practices, with emissions reduction being a key focus.
However, shippers (and carriers) need not feel overwhelmed by existing and forthcoming regulations to slash GHG emissions. This article outlines several actionable strategies to reduce emissions in maritime supply chains so that shippers can feel confident about meeting regulatory demands and achieving sustainability goals.
The Challenge of Maritime Decarbonization
Before we present some strategies, let’s examine the problem we’re trying to solve: reducing GHG emissions from the maritime sector.
Maritime shipping accounts for approximately 2-3% of global carbon emissions. That percentage might seem small, but according to the International Maritime Organization (IMO), it equaled roughly 1,076 million tonnes in 2018 — a 9.6% increase from 2012.
Part of the challenge in reducing GHG emissions from the maritime sector is grappling with the complexity of industry. The maritime sector involves international operations, which means that the industry is subject to a variety of regulations worldwide. The maritime sector also involves large-scale logistics, with dozens of actors working like clockwork in order for maritime shipping operations to run smoothly.
Let’s dive into the varying regulations further. In addition to the EU ETS and the FuelEU Maritime initiative, which calls for the use of renewable, low-carbon fuels and clean energy technologies for ships, the IMO has also set emissions reduction targets for 2030 and beyond. These targets include reducing international shipping’s total annual GHG emissions by at least 20% by 2030, compared with 2008 levels, and reducing international shipping’s total annual GHG emissions by at least 70% by 2040, compared with 2008 levels.
Meanwhile, in California, the California Air Resources Board will be requiring businesses that operate and sell products in California to comply with mandatory disclosure reporting requirements for GHG emissions starting in 2026.
As shippers navigate around fragmented regulatory landscapes across multiple jurisdictions, they must implement responses that also involve balancing costs and efficiency. There’s a lot to keep track of, but thankfully, there are technological tools and solutions, such as the ones developed by Greenabl, to help shippers through these challenges.
Actionable Emissions Reduction: Three Steps Toward Maritime Sustainability
Now that we’ve defined the challenges, let’s go through three actionable steps that companies can undertake to tackle GHG emission reductions and meet regulations head-on.
Accurate Emissions Measurement
To report GHG emission reductions, it’s absolutely necessary to use the right measurements. Accurate measurements mean that you’re getting reliable data, which is the foundation for any effective emission reduction strategy.
The measurement system or metrics that you use for accurate emissions measurement need to be vetted by third parties to ensure their validity. If the measurement system complies with the IMO’s Data Collection System (DCS) or the EU’s Monitoring, Reporting, and Verification (MRV) requirements, then it’s a trustworthy system to use.
To get accurate measurements, shippers can use a variety of technologies, including Internet of Things (IoT) sensors, fuel monitoring systems, and satellite tracking for real-time data collection. There are also tools that integrate with shipboard systems, allowing for streamlined reporting.
Data-Driven Mitigation
In addition to collecting reliable data, it’s necessary to be able to interpret that data well. This is what data analytics does. It’s leveraging data to identify inefficiencies in vessel operations and optimize fuel usage. It provides you with that visibility into your emissions so that you can start developing strategies to reduce emissions even further.
Using data analytics as a foundation, companies can implement several mitigation strategies. These key strategies include using cleaner fuels like liquefied natural gas (LNG), biofuels, or green ammonia. It also includes adopting energy-efficient technologies such as air lubrication systems, optimized hull designs, and wind-assisted propulsion. Companies may also seek to use carriers or other freight transportation providers who use these biofuels or who have invested in these energy-efficient technologies.
Effective Carbon Credits
Using biofuels is one strategy to reduce GHG emissions. An even more effective strategy is using biofuels while also utilizing carbon credits to complement GHG emission reductions.
While using biofuels and biofuel-blended traditional fuels will definitely have benefits, some emissions will always be emitted. Carbon credits, reforestation projects, and carbon capture technologies are additional ways to offset those unavoidable emissions.
To successfully implement a carbon credit program that complements the use of biofuels, companies should explore collaboration opportunities with internationally recognized offsetting schemes and verified carbon registries to ensure compliance and transparency. Verified platforms such as Gold Standard, VERRA, and the American Carbon Registry provide robust frameworks for purchasing carbon credits that effectively offset greenhouse gas emissions. Additionally, transport-focused programs like the TERC initiative (TERC Program) offer tailored solutions for addressing emissions in the transportation sector, providing companies with targeted pathways to achieve sustainability goals.
As companies adopt carbon offsets, they should evaluate their effectiveness by examining on a regular basis whether the offsets fit in with a company’s long-term sustainability goals. Companies should also conduct periodic checks to ensure that their carbon offset initiative is maintaining compliance with regulations.
Take Charge of Your Emission Reductions
We’ve explored the critical need for emission reduction in maritime supply chains, focusing on the industry’s environmental impact and the growing pressure to meet regulatory demands. We looked at the challenges of maritime decarbonization, including compliance with international and regional standards, and presents actionable strategies for sustainability.
Through these three key steps—accurate emissions measurement, data-driven mitigation, and effective carbon credit procurement—companies can create a roadmap that can enable them to reduce GHG emissions and report their reductions to regulations, all while balancing costs, efficiency, and environmental responsibility.
Greenabl is ready to support you as you seek to reduce your company’s GHG emissions. We offers platform to help you measure your GHG emissions, purchase verified and transport-related carbon credits, and we can help you come up with ways to mitigate your emissions.
Contact Greenabl today to get started.
