Cleaner Ships or We’re All Sunk!
We’ve studied how companies are using the SCOR Model to garner more value through ethical, social, economic and environmental drivers within their supply chain. One very important part of most companies supply chain is shipping. About 90 percent of everything we buy as consumers will travel on ships at some point. These same ships are also burning fossil fuel and contributing significantly to warming atmospheres and shifting climates.
The main issue with these cargo ships is that they still use “bunker fuel”; the crude, sludgy remains of the petroleum refining process. This blend is so incredibly cheap that it makes it possible to charge next to nothing to ship goods internationally. This makes using these ships extremely cost-effective and the backbone of the entire world’s trading system.
The shipping industry’s contribution to global warming is expected to increase at a steady rate. Left unchecked, the industry’s carbon footprint is expected to soar in coming decades as the emissions from cars and power plants flatline. This means that the shipping industry would cancel out progress achieved in other sectors. The International Maritime Organization (IMO), the shipping industry’s main regulator, suggests that carbon emissions from shipping could shoot up as much as 250 percent by 2050. Estimates suggest at that point, the industry could produce 17 percent of global emissions, up from less than 3 percent today.
The best available options for powering a ship without fossil fuels include hydrogen, batteries, sustainably produced biofuels, and wind-assisted technologies that can reduce fuel use. These are being used or tested in small-scale vessels. However, if they are going to have any chance mainstream shipping industry, today’s reigning champion — ultra-cheap bunker fuel — will need a price tag that reflects its true environmental cost.
(from http://www.rense.com/general63/sea.htm)
This industry’s reliance on high-carbon fuel has become quite an obstacle for global efforts to control pollution. A few companies are investing in pilot projects that use renewable fuels and cleaner technologies for ships. But overall, there’s widespread reluctance to adopt meaningful change amongst industry giants.
Finally, the most effective driver for steering the shipping industry away from using high-carbon fuels may come from outside the industry. The customers and companies who decide to place their goods on the ships are likely the best motivators for forcing the sector to go green. That’s the solution Maurice Meehan sees as a key way forward. Meehan is director of shipping operations at the Carbon War Room, a nonprofit founded by Virgin’s Richard Branson to promote business-oriented climate solutions.
As he explains, companies that have goods that are shipped around the world have substantial leverage with their logistics providers. If climate-conscious companies push their shippers to do more about reducing their vessels’ carbon footprints, the industry would have to change. Ships with higher emissions would face a competitive disadvantage if manufacturers got serious about reducing supply-chain emissions. Meehan says his team is talking with big users of cargo ships, such as apparel companies, to help them target shipping-related emissions. As a part of that, Carbon War Room is developing tools to make it easier for companies to choose vessels with lower emissions and better efficiency or at least ensure their products aren’t loaded onto the worst performers.
Meehan’s idea is exactly what we are learning, how to create tangible value through sustainable initiatives. The article on this topic on Grist has a lot more interesting information to offer about the shipping industry and its future. Be sure to check it out!
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