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Trafigura and K Line Latest to Introduce Carbon Neutrality Initiatives

carbon neutrality programs
Impala Terminals' Porto Sudeste iron ore port facility in Brazil (Impala)

By The Maritime Executive 03-09-2021 05:03:34

Responding to the increasing interest of customers and business opportunities, the maritime industry is finding new ways to provide services that quantify and help customers offset the carbon impact of their business. Several carriers have already been offering carbon-offset capabilities and now it is expanding into ports and other services as the industry becomes increasingly focused on achieving sustainability.

Commodities trading group Trafigura announced that its Impala Terminals, which operates a network of base metals terminals in Central and South America, is starting a certified carbon neutral freight service. According to the company, the service will give customers visibility into the indirect greenhouse gas (GHG) emissions generated by the transportation of their shipments of non-ferrous metals and minerals via container, while empowering them to offset these emissions by providing essential funds to impactful carbon finance projects across the world. Impala Terminal’s carbon neutral freight service will provide customers with calculations of indirect GHG emissions from the points of collection to the points of delivery of their cargoes. 

“This new service compliments Impala Terminals’ proactive efforts to reduce its operational emissions and manage its carbon footprint. We can now help our customers, including raw material suppliers for the electronics, batteries, and electric vehicle industries, to measure and offset greenhouse emissions along their supply chain,” said Nicolas Konialidis, CEO of Impala Terminals. “As a global logistics leader, we are committed to upholding our responsibility in addressing climate change, and will continue to engage with our operating partners and customers in identifying new avenues towards a lower-carbon future.”

Prior to the launch of this service, Trafigura reports it had already embarked on the use of the carbon neutral freight service in transporting nickel precipitates via sea container originating from Terrafame’s mine and refinery in Sotkamo, Finland to destination ports in China. To offset the freight service’s emissions, a verified emission reduction project was chosen in Colombia - a region where both Trafigura and Impala Terminals have a significant business presence. The project aims to protect the Chocó-Darién Rainforest, one of the most biologically diverse areas in the world, from deforestation.

Major shipping lines have also been adopting carbon-offset programs. In 2020, MSC became one of the first to provide customers with an option for carbon offsets through 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. Under development since 2019, and previously offered in select countries, MSC extended the program worldwide in 2020. 

Similarly, CMA CGM also rolled out a new offering called ACT in which they are providing four services enabling customers to analyze their environmental footprint, use cleaner alternative energy sources, and to offset the emissions generated during the transport of their goods. By mixing and matching the various solutions available in the ACT, CMA CGM says its customers can make their cargo carbon-neutral while contributing to the overall energy transition in the shipping sector.

Japan’s “K” Line (Kawasaki Kisen Kaisha) announced today that it will also establish a new department focusing on businesses and projects for carbon neutrality. Noting the rapid growth in the requirement of decarbonization and the expectations for the business field of carbon neutrality, such as renewable energy, offshore wind, carbon dioxide capture, utilization and storage projects, energy transition projects) and carbon emission trading, “K” Line plans to launch this new business starting April 1. The group will facilitate business development for net-zero CO2 emission along with related parties and within the group.