HK Shipping Company and Power Company to Promote Carbon Offsetting
In an effort to raise awareness and promote carbon offsetting to the shipping industry, the Hong Kong shipping group Wah Kwong Maritime Transport Holdings has a sign a memorandum of understanding with the Asian Pacific power company CLP Holdings. The program designed to support the shipping industry’s efforts to decarbonization seeks to leverage the power company’s wind generation with a carbon credit platform.
As part of the agreement, Wah Kwong will purchase carbon credits from CLP to offset the carbon emissions of its business and the fuel it purchases for its fleet. Wah Kwong is rapidly growing its fleet from 37 vessels under management at the beginning of 2020 to a current level of 50 and targeting continued growth to 64 vessels owned or managed.
Also, the agreement will enable the two companies to develop new service offerings using CLP’s carbon credits to meet the potential needs of other shipping companies to offset emissions and lower their carbon footprint.
“CLP is excited to collaborate with Wah Kwong, one of the most prominent and forward-looking shipping companies in Hong Kong, to work towards a lower-carbon future for the maritime industry,” said Betty Yuen, Group Director and Vice Chairman of CLP Power Hong Kong Limited. “As an early mover on carbon intensity reductions in Asia’s power industry, CLP is continuing to explore creative ways to use our know-how and resources such as the CLP Carbon Credits platform to decarbonize not only the electricity sector but also the wider economy.”
The CLP Carbon Credits platform allows users located anywhere in the world to calculate their carbon emissions and purchase carbon credits generated by CLP’s wind farms in India. It is part of Smart Energy Connect (SEC), a digital solutions platform launched by CLP in 2019 to offer businesses and organizations a diverse selection of digital energy technologies and solutions.
“Sustainability is something we very much take to heart,” said Hing Chao, Executive Chairman of Wah Kwong. “I am very glad that CLP has been here to give us guidance on taking this step. For us, this is merely the beginning. By having our friends here from the shipping industry, we will send a strong signal to other stakeholders in the industry to also join onboard on this push towards a more sustainable future.
Wah Kwong is the latest shipping company to adopt carbon credits as its contribution to the global decarbonization goals. Several shipping companies have also introduced carbon credits as a tool for their customers. MSC, for example, announced it would this year extend to customers a global program in partnership with South Pole, a company that works with businesses and governments to aid in the development of emission reduction and renewable energy projects tailored to the organization’s needs. Shippers can compensate for the emissions generated from the transportation of their cargo by financially contributing to two of South Pole’s emission reduction projects.
Carbon offset programs are seen as one of the tools the shipping industry can employ to help reach the International Maritime Organization’s 2030 goals for reducing carbon emissions.