Amazon, IKEA Form Zero Emissions Maritime Buyers Alliance To Go Green In Shipping

Container Ship
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Amazon and IKEA, along with over 30 other companies that rely on ocean freight, are collaborating to increase demand for green fuels like e-methanol.

The initiative, led by the Zero Emissions Maritime Buyers Alliance (ZEMBA), plans to speed up the maritime industry’s shift to net-zero greenhouse gas (GHG) emissions by 2050.

Starting in January, the alliance will invite shipping companies to bid on contracts to transport cargo using vessels powered by near-zero-emissions e-fuels.

These fuels, made from renewable electricity and carbon dioxide, are currently in short supply but are seen as crucial to decarbonizing maritime shipping.

ZEMBA is using the collective purchasing power of its members, including Amazon and IKEA, to increase demand and lower costs for these sustainable fuels over time.

Carl Berger, Amazon Global Logistics’ head of sustainability, says the project is essential to achieving net-zero emissions targets.

The contracts, which will officially start in 2027, are expected to extend for three to five years and cover the transportation of goods equivalent to at least 1.4 million 20-foot containers between Shanghai and Los Angeles.

According to ZEMBA, the initiative has the potential to reduce GHG emissions by about 470,000 metric tons.

Maersk, Evergreen, and Ocean Network Express have already invested in vessels that can operate on e-methanol. However, alliance members expect to pay a higher price for greener fuels at first, with the assumption that costs will fall as production increases.

Ingrid Irigoyen, CEO of the Aspen Institute-administered ZEMBA, expressed confidence that global regulations will further encourage the use of e-fuels.

The International Maritime Organization plans to develop a regulatory framework in April to reduce the intensity of GHG emissions in marine fuels. The initiative might include incentives for zero-emission fuels and penalties for high carbon emissions.

Shipping accounts for over 3% of global GHG emissions and powers more than 80% of international trade.

Reference: Reuters, ESG News

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Marine Insight News Network is a premier source for up-to-date, comprehensive, and insightful coverage of the maritime industry. Dedicated to offering the latest news, trends, and analyses in shipping, marine technology, regulations, and global maritime affairs, Marine Insight News Network prides itself on delivering accurate, engaging, and relevant information.

About Author

Marine Insight News Network is a premier source for up-to-date, comprehensive, and insightful coverage of the maritime industry. Dedicated to offering the latest news, trends, and analyses in shipping, marine technology, regulations, and global maritime affairs, Marine Insight News Network prides itself on delivering accurate, engaging, and relevant information.

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