Tag Archives: green shipping

No green shipping corridors without landside infrastructure

Green shipping corridors are the latest effort to create strategies for ESG compliance, particularly environmental, for the global shipping industry. These corridors are starting to show up in the planning stages. The intent is to create a connected system of ports that have all the improvements necessary to allow those ships using it to achieve a high level of compliance with green shipping standards.

That means the availability of fuels that meet international green standards such as those of IMO 2022, as well as green technology for loading and storage of containers and other products; and yard equipment that meets green operating standards.

Of these perhaps ensuring the availability of the fuels required is the most challenging. Availability alone is not enough; the price must be competitive, and sufficient storage must be in place; and long-term availability must be assured. The variety of fuels now under consideration for green ocean transport is a challenge. In addition to LSFO, some ships will soon require green methanol; major players such as Maersk and CMA-CGM are investing in methanol-powered ships. And recent studies have shown that fuels can burn greener, but the means of their production and storage have to be included in the fuel evaluation. An interesting study of this was made by Bureau Veritas (BV), a classification society, which described in detail the greenness from well to wake of a wide variety of power options from biodiesel and HS/LSFO to methanol and ammonia. Not all of these are easy to make and store.

So infrastructure will be incredibly important for the green corridors.

Some newly-announced corridors start from Singapore, which already has a large fuel infrastructure, and is a globally important financial center for dealing in fuels. That will be a tremendous advantage. European ports like Rotterdam and American ports like New York already have quite a bit of financial and storage infrastructure. These ports are already part of announced green corridors. However, even at these developed ports some of the alternative low emissions fuels are not available, nor is there the handling capability present.

The interview with the CEO of GCMD casts useful light on what’s needed.

Prof Lynn Loo, CEO of GCMD, in an interview at TOC Asia.

Much of the focus in decarbonising shipping is on the vessels, however, without developing landside infrastructure projects such as green corridors cannot take off.

Marcus Hand | Nov 30, 2022

No green shipping corridors without landside infrastructure

Upcoming European tsunami

I never heard of the European Union’s taxonomy regulation before.

It’s designed to increase investment in green economic activities, and discourage investment in environmentally sensitive ones. Essentially it codifies the Poseidon Principles into an EU policy.

The term ‘taxonomy’ comes from the intent to classify investments with regard to a number of criteria. In other words, you can’t call an investment ‘green’ unless it speaks to these issues, and meets established criteria.

According to the author, the taxonomy regulation has several main environmental points, as well as social ones:

  • climate change mitigation
  • climate change adaptation
  • sustainable use and protection of water and marine resources
  • transition to a circular economy
  • pollution prevention and control
  • protection and restoration of biodiversity and ecosystems.

The author is a bit concerned that the regulation will give non-European companies an advantage in pursuing shipping investments. And he’s worried about the effect on shipping finance, though he supports the idea of green investment. He just thinks there will be a time of disruption in the financing of maritime activities, with good long-term effects but some short-range dislocation.

That dislocation could affect supply chains in general. For instance, slower steaming will effectively reduce the capacity on main shipping lanes. And the fact that newbuild years are booked two or more years ahead will prevent faster turnover or augmentation of the fleet with cleaner ships.

Nonetheless, adoption will clarify what a green investment means, and will reduce greenwashing— publicizing efforts that are relatively small improvements as major contributions to environmental improvement. And, especially in Europe, it will put down a marker for firms and individuals to reach for.

Dagfinn Lunde April 21, 2022

Upcoming European tsunami – Splash247