What is Carbon Offset Shipping?

The maritime industry is responsible for the production of approximately 3% of carbon dioxide emissions or 1000 million tonnes annually. Like all other sectors, global shipping faces increased pressure to decrease its carbon footprint, as climate change and global warming have become serious issues.

If nothing is done, carbon emissions could rise by 50% by 2050. However, the International Maritime Organization has put forward a strategy to tackle this situation. It includes cutting emissions by 20-30% by 2030, 70-80% by 2040 and attaining net zero greenhouse gas emissions by 2050.

Carbon Neutral Shipping

Achieving these figures might be challenging but shipping companies can follow a few methods like carbon-neutral shipping, which is a sustainable approach towards shipping goods. This involves reducing the carbon footprint by using eco-friendly packaging for cargo, using waste reduction techniques and recycling, having solar-powered warehouses for storing goods etc.

Carbon Offset Shipping

Another approach is Carbon offset Shipping which is about compensating for carbon emissions released when shipping cargo, by balancing them with actions to remove an equal amount of carbon dioxide from the atmosphere. This is done by investing in carbon offset projects which involve tree plantation drives, renewable energy projects etc.

Companies can neutralise their environmental impact and contribute to sustainable efforts by being a part of carbon offset programs.

Carbon Offsets

Many companies use carbon offsets and renewable energy credits as a part of their carbon neutrality strategy.

Going carbon neutral means measuring the company’s carbon footprint and finding measures to decrease those emissions. It also implies using carbon credits to offset the impact which cannot be eliminated.

Carbon offsets are investments a company makes in projects to keep carbon out of the atmosphere by decreasing, avoiding or capturing and storing carbon emissions.

These offsets neutralise the carbon emissions of an equal amount elsewhere by keeping the net amount of carbon in the air unchanged.

Every offset or carbon credit represents 1 tonne of CO2 equivalent emissions decreased or avoided. A CO2 equivalent is a measure which accounts for the differing potency of greenhouse gases.

CO2 is the least powerful and has a global warming potential of 1 while methane, another greenhouse gas has a global warming potential of 25. Hence, 1 pound of methane would count as 25 pounds of CO2 equivalents.

A Few Types of Offset Projects

Shipping companies can compensate for their emissions through a portfolio of projects in partnership with firms or companies which specialise in carbon offsetting.

CMA CGM is a company that offers carbon offsetting program. It has other options too for reducing carbon footprint such as choosing biofuel which can lower around 84% of the carbon emissions produced by the shipments.

Then there are hundreds of different kinds of offset projects, some generate electricity by renewable means while others capture greenhouse gases from livestock waste, abandoned mines, industrial sources, landfills etc.

Since trees store carbon in their roots and wood, reforestation and improved forest management can sequester carbon.

Advantages of Carbon Offset Shipping

Corporate Responsibility

Carbon offsets are effective in helping curb the impact of carbon emissions generated by shipping activities and other technologies that make modern life comfortable.

They are important tools built upon the Paris Accords and Kyoto Protocols, international treaties that aim to decrease greenhouse gas emissions and combat climate change.

Though carbon offsets do not address the source of emissions, they are a mechanism for making companies and businesses account for the costs of their carbon emissions.

When shipping companies undertake CO2 offset projects, they show their commitment to being environmentally responsible which also improves their image and meets the expectations of consumers.

Cost-Effective Solution

Investments in carbon offset projects are cost-effective as instead of making massive investments in new technologies, companies can buy offsets at a fraction of the cost.

Forging Sustainable Supply Chains

Carbon offsets for shipping allow collaboration across the supply chain as shippers can work with logistics providers and others to form achievable sustainability strategies to enhance the environmental performance of their operations.

Process of Carbon Offset Shipping

There are many steps involved in carbon offset shipping including:

Calculation of Emissions: Shipping Companies must first assess the carbon footprint of their operations, which includes fuel consumption, cargo weight, shipping distance and other variables. Emission calculators are used to calculate carbon dioxide emissions based on these factors.

Buying Carbon Credits: After the total emissions of a shipping company are known, the next step is purchasing carbon credits equal to the CO2 produced. They can be bought from offset projects which reduce or absorb carbon, including renewable energy, protection of forests or those involving methane capture.

Certification and Reporting: Shipping Companies should ensure that offsetting projects are certified. One can look for those certified by recognised standards like the Verified Carbon Standard or the Gold Standard to ensure transparency and accountability.

Role of Emerging Technologies

Though carbon offsetting is an important tool, it is not a permanent solution. The maritime sector has to invest in cleaner technologies which reduce carbon emissions at the source. Some such technologies include:

Alternative fuels: The use of alternative fuels like LNG, biofuels, ammonia and hydrogen are being explored to decrease fuel consumption, and lower carbon emissions from shipping operations.

Wind-Assisted Propulsion System: A few ships are experimenting with wind-assisted propulsion systems like sails and kites to decrease carbon emissions.

Energy Efficient Technologies: The use of efficient and improved systems of air lubrication, smart hull modifications etc, can help reduce emissions.

The Future of Carbon Offset Shipping

Carbon Offset Shipping will evolve as the shipping sector strives to achieve its decarbonisation goals. As the demand for carbon-neutral shopping grows, more companies will adopt carbon offset strategies as part of their environmental and business strategies.

However, it must be realised that this approach is a complementary one rather than a substitute for decreasing emissions. Shipping Companies should invest in eco-friendly technologies and methods to create a more sustainable future for shipping.

Also, consumers can help promote carbon offset shipping by choosing companies that participate in carbon offset programs. Also, a few companies offer their clients the option to even contribute to carbon offset initiatives, enabling them to offset emissions associated with their orders.

Conclusion

Carbon Offset Shipping is vital for the maritime industry to check its carbon footprint. It offers a practical way for shipping companies to take responsibility for their environmental impact while they transition to more sustainable practices.

With advancements in maritime technologies and the availability of new offset projects, carbon offset shipping will allow the shipping sector to manage its carbon emissions.

You might also like to read-

• 10 Future Ships that Would Change the Face of the Shipping Industry
• How to Build a Green Supply Chain?
• 7 Technologies To Reduce Fuel Consumption Of Ships

About Author

Zahra is an alumna of Miranda House, University of Delhi. She is an avid writer, possessing immaculate research and editing skills. Author of several academic papers, she has also worked as a freelance writer, producing many technical, creative and marketing pieces. A true aesthete at heart, she loves books a little more than anything else.

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