To expedite the shift to sustainable shipping without complex supply chain changes, GoodShipping, in collaboration with the Port of Rotterdam Authority, initiated the ‘Switch to Zero’ campaign.
Companies could easily grasp the insetting concept, reduce CO2 emissions in their freight at an attractive price, and realize that change is feasible without supply chain adjustments.
Robbert Wehrmeijer, Managing Director of Carbon Management at FincoEnergies, commented, “We all know the sea level is rising. According to a recent study by the IPCC, in the best-case scenario that will be by an average of 37 centimetres across the globe by the year 2100. GoodShipping is committed to minimising the damage and achieving the most optimistic scenario possible. That is feasible provided no more CO2 is emitted in 2050.”
Despite challenges, Wehrmeijer confronts the pressing issue: logistics and transport contribute over a third of global CO2 emissions, a significant pollution source. With global freight rising, FincoEnergies emphasizes the urgency for the sector to embrace sustainability. GoodShipping, through insetting, facilitates this imperative action.
“Insetting means reducing CO2 emissions within the sector in which they are emitted. We do that by facilitating the move from fossil fuels to sustainable biofuels,” explained Wehrmeijer.
Additionally, insetting is a strategy where companies cut their ecological footprint within their supply chain. Unlike compensation, it involves actively adopting sustainable alternatives. Companies purchase certificates for biofuel use, equivalent to their CO2 reduction. This approach empowers firms to impact their supply chain sustainability significantly and fosters long-term improvements.
Enabling a seamless transition, GoodShipping can cut scope 3 emissions by 85% without requiring shippers to alter their supply chains. Although GoodShipping initiated insetting in 2017, it took time to establish an international standard. In collaboration with the Smart Freight Centre (SFC), the World Economic Forum, and DHL, GoodShipping crafted the Voluntary Market Based Measures Framework for Logistics Emissions Accounting and Reporting.
“Following the guidelines creates transparency and companies can effectively quantify, monitor and account for their CO2 emission reduction,” added Robbert Wehrmeijer.
While the current emphasis is on biofuels, FincoEnergies is actively exploring future alternatives like electric propulsion, hydrogen, other alternative fuels, and CO2 capture.
FincoEnergies is in discussions with fleet owners to address the ongoing environmental impact of the current fleets, while sustainable vessels are being developed. Their solution allows immediate contributions to a cleaner future. Also, they prioritize blockchain for source verification and chain transparency.
The main challenge, according to Wehrmeijer, is convincing companies to adopt biofuels promptly, given the formidable task of making the transport sector CO2 neutral amidst tightening regulations.