Major global traders commit to reporting on shipping emissions

A group of the world’s largest energy, agriculture, mining, and commodity trading companies, including Trafigura, Cargill, and Shell, have committed to report on CO2 emissions reduction of their shipping activities in line with the industry’s decarbonization goals.

The companies have joined forces within a global framework, the Sea Cargo Charter, which establishes a common baseline to quantitatively assess and disclose whether shipping activities are aligned with adopted climate goals.

The Sea Cargo Charter is consistent with the targets of the UN’s International Maritime Organization, including GHG emissions reduction by at least 50% by 2050.

Founding signatories of the network include Anglo American, ADM, Bunge, Cargill Ocean Transportation, COFCO International, Dow, Equinor, Gunvor Group, Klaveness Combination Carriers, Louis Dreyfus Company, Norden, Occidental, Shell, Torvald Klaveness, and Trafigura.

Large industrial corporations are significant users of the international shipping industry, which carries around 80% of world trade flows and is estimated to be responsible for 2-3% of global greenhouse gas emissions annually.

The shipping of crude oil, coal, iron ore, grain and other bulk commodities used worldwide make up over 80% of global seaborne trade.

“A standard greenhouse gas emissions reporting process will simplify some of the complexities often associated with reporting. It will encourage a more transparent and consistent approach to tracking emissions, which will be a critical part of making shipping more sustainable,” says Jan Dieleman, President, Cargill Ocean Transportation and Chair of the Sea Cargo Charter drafting group.

“Collaboration such as this, from across the sector, is vital to scale-up customer demand for low- or zero-emissions shipping. This same spirit of collaboration is also vital in the pursuit of the technological advances needed to unlock decarbonisation solutions, and in building industry support for regulation which can create an ambitious but level-playing field under which to invest. Building on this momentum we would like the IMO to use its 2023 strategy review to set the trajectory for the sector to move to net-zero emissions by 2050,” says Grahaeme Henderson, Global Head, Shell Shipping & Maritime.

The development of the Sea Cargo Charter has been led by global shippers – Anglo American, Cargill Ocean Transportation, Dow, Norden, Total, Trafigura – and industry players – Euronav, Gorrissen Federspiel, Stena Bulk – with expert support provided by the Global Maritime Forum, Smart Freight Centre, University College London Energy Institute/UMAS, and Stephenson Harwood.