Availability of sustainable biofuels

This report on the availability of sustainable biofuels for shipping is a follow-up to SSI’s 2019 inquiry into the role of sustainable biofuels for shipping. Commissioned by SSI and authored by GreenFuelHub, the report draws on  academic research, industry reports, and publicly available data to outline the current landscape for biofuels in shipping, covering biofuel types and production methods, use and trials in shipping, as well as the challenges surrounding availability and shipping’s role in the broader bioeconomy.

The report explores the availability of sustainable biofuels issue, noting several reasons why estimating exact numbers (in terms of volume) can be a challenge. Sustainable biofuels production requires a sustainable biomass feedstock which is a limited resource that many sectors seeking to move away from fossil-based production will be competing on. The report thus highlights that the availability of sustainable biofuels for the shipping sector must be seen in the context of the overall bioeconomy.

This report concludes SSI’s current work on biofuels, which began in 2018 with the report Zero Emission Vessels: What needs to be done? and continued with the 2019 inquiry on The Role of Sustainable Biofuels in the Decarbonisation of Shipping.


Kristina Kunigenas

Kristina Kunigenas


Head of Partnerships & Development

Kristina joined the Sustainable Shipping Initiative in April 2021, where she is responsible for stakeholder engagement and development of the SSI. Her background is in corporate responsibility, namely policy and strategy development and implementation, human rights and biodiversity risk assessments, responsible supply chain management and ESG, anti-corruption and climate impact reporting. A majority of Kristina’s career has been in governance issues and sustainability in various sectors including advisory services, finance, pharma and latest shipping.

Originally Danish, Kristina lives in Copenhagen with her (American) husband and son. She holds a Masters’ in English from the University of Copenhagen and a certificate programme in CSR reporting from UC Berkeley.


SSI Impact: News from our journey to sustainable shipping - 01/2021

The SSI Newsletter is published quarterly and is the place to find news from the SSI community, our partners and the impact of our collective work along our journey to a sustainable shipping industry.

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Lloyd's List Shipping Podcast: Why sustainable shipping is about more than just carbon reduction

In a podcast moderated by Lloyd’s List managing editor Richard Meade, the Sustainable Shipping Initiative (SSI) and Lloyd’s Register bring together industry experts to talk about why the sustainability of marine fuels needs to be taken into account alongside price, availability and technical feasibility considerations.

Panelists:

  • Katharine Palmer, Global Sustainability Manager at Lloyd’s Register
  • Simon Bennett, General Manager for Sustainable Development, The China Navigation Company
  • Mark Lutes, Senior Advisor on Global Climate Policy, WWF Climate and Energy Practice

The panel of SSI members discussed the sustainability principles to be taken into account on a well-to-wake basis – from social, labour and human rights, to safety, to land use change and more.

Listen below, and read the white paper Defining sustainability criteria for zero and low carbon fuels which sets out thirteen sustainability principles surrounding the marine fuels under consideration for shipping decarbonisation.


Sustainable Shipping Initiative sets out sustainability issues and principles surrounding marine fuels for the decarbonisation of shipping

LONDON, 8 February 2021 – The Sustainable Shipping Initiative (SSI) has published a white paper setting out sustainability issues and principles surrounding marine fuels under consideration for shipping’s decarbonisation.

The paper, titled Defining sustainability criteria for zero and low carbon marine fuels, outlines thirteen sustainability issues and principles to be taken into consideration to ensure that the marine fuels the industry is investing in, purchasing and using to transport cargo are sustainable over their entire lifecycle and not causing negative impacts.

The sustainability principles and criteria will feed into the development of industry standards and third-party certification schemes to assure and facilitate the selection of – and demand for –sustainable marine fuels.

As the industry transitions to zero emission shipping, stakeholders across the shipping value chain are increasingly aware of the need to better understand the sustainability issues surrounding the zero and low carbon marine fuels under consideration. The sustainability principles and criteria can be used by stakeholders across the shipping value chain ranging from shipowners (as fuel purchasers); fuel producers and suppliers; shipping customers; regulators; and investors in zero emission shipping.

The white paper was developed in consultation with SSI members and industry stakeholders to identify the sustainability issues and principles around the zero and low carbon marine fuels currently under consideration. In parallel, academic research conducted in partnership with Copenhagen Business School (CBS) Maritime through the Green Shipping Project will further test, challenge and/or validate SSI’s work, providing a robust evidence base to inform a final set of principles and criteria to be released later this year.

Through this white paper, the SSI hopes to spark debate and dialogue around sustainable marine fuels as part of the industry’s decarbonisation journey and invites all interested stakeholders to engage by sharing their feedback.

Defining sustainability criteria for zero and low carbon marine fuels is available here.

Nicole Rencoret, Head of Partnerships and Development, Sustainable Shipping Initiative: “Selecting zero and low carbon marine fuels is not just about price, availability and technical feasibility. They must also be sustainable over their entire lifecycle – including the operations around the production, transport, storage, handling and use of marine fuels. SSI invites industry stakeholders to join us as we work towards facilitating standard setting and putting in place certification schemes to assure marine fuels’ sustainability.”

Katharine Palmer, Global Sustainability Manager, Lloyd’s Register: “While it is important that zero-carbon vessels are commercially viable, technically feasible and safe, the sustainability of new fuels also needs to be equally considered. SSI’s new paper raises the importance of the sustainability of future zero-low carbon fuels from a lifecycle perspective – bearing in mind the impacts from primary feedstock, production processes, transport, storage and operational use, so the problem isn’t moved elsewhere in the supply chain. We hope SSI’s new criteria and principles can be used by the market to set a sustainability standard and provide full supply chain transparency and assurance.”

Simon Bennett, General Manager – Sustainable Development, The China Navigation Company: “This SSI white paper [setting out sustainability issues and principles surrounding all marine fuels under consideration for shipping’s decarbonisation] seeks to close a knowledge gap that is widely recognised by the parties who will have to implement the move to an alternate fuel/s. In making this move, the parties must avoid the “leakage” issue that was found with implementing the Montreal Protocol [on Substances that Deplete the Ozone Layer in 1987], in which responsible organisations, in changing to a lower ODP substance in one area inadvertently increased the Global Warming Potential of the substitute in another area.

This white paper proposes the wide range of sustainability issues to be considered. We expect that by mid-2021, in cooperation with CBS, we will have robust data to support the next steps; the development of quantitative sustainability requirements for each criterion, and then engagement with competent external parties to certify these.”

Mark Lutes, Senior Advisor – Global Climate Policy, WWF Climate and Energy Practice: “Decarbonizing the global economy by 2050 is one of the most important challenges of our time, and the shipping sector cannot be left behind. Central to this task is finding the best low and ideally zero emission fuels, that have the lowest possible negative impacts and the greatest contribution to sustainable development over their entire lifecycle. This report proposes a set of principles and criteria as a basis for assessing the sustainability of potential alternative shipping fuels. We are now seeking input and suggestions for how to improve and operationalize these principles and criteria, to ensure that the shipping sector is part of the solution to a zero emissions global economy. “

– ENDS –

 

Notes to Editors

For more information, interviews or comment please contact Elizabeth Petit, Head of Communications, Sustainable Shipping Initiative (e.petit@sustainableshipping.org).

About the Sustainable Shipping Initiative

The Sustainable Shipping Initiative (SSI) is a multi-stakeholder collective of ambitious and like-minded leaders, driving change through cross-sectoral collaboration to contribute to – and thrive in – a more sustainable maritime industry. Spanning the entire shipping value chain, SSI members are shipowners and charterers; ports; shipyards, marine product, equipment and service providers; banks, ship finance and insurance providers; classification societies; and sustainability non-profits.

www.sustainableshipping.org | @SustShipping

 

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White paper: Defining sustainability criteria for zero and low carbon marine fuels

The rapid decarbonisation of shipping is a key challenge that requires the industry to come together for the deployment of commercially viable deep sea zero emission vessels by 2030. Achieving this ambition demands the exploration of zero and low carbon fuels for development, testing, and scaling up to meet demand.

The zero and low carbon fuels currently under consideration for the decarbonisation of shipping are mostly being evaluated on price, availability and technical feasibility. However, we must also ensure that the fuels we are investing in, purchasing, and using to transport cargo are sustainable and avoid negative impacts.

The Sustainable Shipping Initiative (SSI) has identified a set of sustainability principles for the zero and low carbon fuels under consideration as substitutes for the conventional fossil-based marine fuels. While recognising the importance sustainable fuels and technologies have in the decarbonisation of shipping, this paper specifically focuses marine fuels.

Through this white paper, the SSI hopes to spark debate and dialogue around sustainable marine fuels as part of the industry’s decarbonisation journey and invites all interested stakeholders to engage by sharing their feedback below, or via email to info@sustainableshipping.org.


Financial stakeholders are key to shipping’s green transition

This piece originally appeared in Nordea’s Open Insights blog prior to the Nordea Sustainable Finance and Shipping Forum. Watch the event recording here.

Shipping is one of the lowest emission-intensive modes of transporting goods, compared to, for example, trucking or aviation. However, accounting for around 80% of world trade, the shipping industry is also among the largest carbon emitters, with over one billion tons of greenhouse gas emissions each year, similar to the total carbon emissions of Germany. Such emissions are expected to grow by 50-250% by 2050 if left unchecked.

While the industry has largely been out of sight and out of mind, that’s changing, according to Andrew Stephens, Executive Director at the Sustainable Shipping Initiative (SSI). Demand-side stakeholders, including civil society, lenders, investors and cargo holders, are exerting more pressure on the industry to reduce its environmental impact and improve its sustainability performance.

What are the biggest challenges in the shipping sector when it comes to becoming more sustainable?

Transparency. More is happening in the way the industry operates, for example through decarbonisation, where emission targets, regulatory requirements and demand from financial stakeholders and customers are paving the way to more disclosure and transparency. But how is reporting done, and how credible is it? Is it voluntary, and is it verified by any external authorities, bodies or agents?

Historically, shipping has been resistant to sharing information for fear of it being used in a competitive way, even if not proprietary. Transparency thus remains a challenge, but it is trending upwards, with more demand for data enabling stakeholders to make informed decisions around sustainability performance.

Financial institutions are leading the way forward with, for example, the Poseidon Principles, through which they disclose data on the climate alignment of their shipping portfolios.

Where is the most progress being made?

Right now, progress is focused on the decarbonisation front. That’s where we see real discourse, action and collaboration between public and private sectors. There’s a hunger for rapid decarbonisation and a need for stakeholders to work together on this problem – it will not be fixed by one group alone.

The discussion at the moment is focused on alternative fuels and technologies for decarbonisation, which SSI is working on as a knowledge partner of the Fuels & Technologies workstream of the Getting to Zero Coalition. Additionally, the sustainability credentials of these fuels are also a key issue under consideration, ensuring that, for example, hydrogen and ammonia are derived from sustainable sources. The breakthroughs are there from a technical perspective, but it’s the scaling up and the upstream infrastructure that need addressing.

This presents an opportunity for finance to enable and support shipping’s transition to zero (or low) carbon fuels such as green hydrogen or green ammonia from wind and solar.

What role do you see sustainable finance playing in the transition?

Financial market actors are among the key stakeholders and levers for driving progress in the industry. They have a significant influence across the shipping value chain in terms of being able to demand action.

The levers are both carrot and stick. Some banks have taken the stick approach of removing poor performers or sectors not in line with certain policies or positions. The alternative approach is to partner with the elements of an industry to not just agree on incentives, which could be preferential loans or rates based on good performance, but to also play a key role in sharing and inspiring how it can be done.

The Climate Bonds Initiative has launched criteria to steer investments in the shipping industry, rewarding those not carrying fossil fuels and those operating zero-emission vessels or targeting to become zero-emission. And it’s not just about ship owners. Charterers are also helping to drive the requirements for low-carbon initiatives through the supply chain, having those requirements put into their contracts and reporting on that. The more these initiatives are shared across the value chain and incentive-driven, the more they will be taken up.

Making the shipping industry more sustainable is a collective challenge, requiring engagement from all actors across the value chain – whether it’s decarbonisation, responsible ship recycling, or safeguarding labour and human rights for seafarers and other shipping workers. Finance has the power to provide guidance and support, sharing its knowledge of what is possible and partnering with the industry to bring about positive change.


Wilhelmsen Ship Management becomes a member of the Sustainable Shipping Initiative

LONDON, 19 January 2021 – The Sustainable Shipping Initiative (SSI) today announces its newest member, Wilhelmsen Ship Management.

Wilhelmsen Ship Management (WSM) is a provider of third-party ship management services, providing technical and crew management services for various vessel segments: LNG/LPG, Ro-Ro and PCC/PCTC, Bulk, Container, Cruise and Offshore.

They join fourteen members spanning the shipping value chain: ABN Amro, Bunge, Forum for the Future, IMC Industrial Group, Lloyd’s Register, Louis Dreyfus Company, Maersk, Oldendorff Carriers, Priya Blue, RightShip, The China Navigation Company, South32, Standard Chartered Bank, and WWF.

SSI brings together like-minded, leading organisations with shared goals and determination to improve the shipping industry. Members, ranging from shipowners and charterers, to environmental NGOs, banks, service providers and classification societies, work together toward the milestones laid out in the Roadmap to a sustainable shipping industry.

Wilhelmsen Ship Management is committed to operating responsibly and making a positive contribution to society and the environment. The Singapore based ship manager has a progressive aim to incorporate the elements of People, Environment, Trade and Customer into the heart of ship management operations. As a member, Wilhelmsen Ship Management will participate in working groups on issues relevant to the Roadmap’s six vision areas: Oceans, Communities, People, Transparency, Finance, and Energy.

“We look forward to deepening our sustainability priorities and making a bigger impact through the SSI platform. We hope to work collectively together with other forward leaning members in SSI to impart values in the shipping industry.” says Carl Schou, CEO and President of Wilhelmsen Ship Management.

SSI Executive Director Andrew Stephens said: “On behalf of SSI and its members, I am pleased to welcome Wilhelmsen Ship Management to the family. The sustainability challenges facing the shipping industry, from decarbonisation to seafarers’ rights, transparency and healthy oceans, must be collectively addressed across the value chain. The unique perspective WSM brings as a ship management company will further diversify the SSI membership, helping us ensure representation of the entire shipping value chain in our work.”

- ENDS -

 

Notes to Editors

For more information, interviews or comment please contact Elizabeth Petit, Head of Communications, Sustainable Shipping Initiative (e.petit@sustainableshipping.org) or Esther Gan, Vice President of Marketing & Communication, Wilhelmsen Ship Management (esther.gan@wilhelmsen.com).

About the Sustainable Shipping Initiative

The Sustainable Shipping Initiative (SSI) is a multi-stakeholder collective of ambitious and like-minded leaders, driving change through cross-sectoral collaboration to contribute to – and thrive in – a more sustainable maritime industry. Spanning the entire shipping value chain, SSI members are shipowners and charterers; shipyards, marine product, equipment and service providers; banks, ship finance and insurance providers; classification societies; and sustainability non-profit organisations.

www.sustainableshipping.org | @SustShipping

About Wilhelmsen Ship Management

Wilhelmsen Ship Management, a Wilhelmsen group company, is one of the world’s largest third-party ship manager with a portfolio of more than 450 vessels and 9 200 active seafarers. Wilhelmsen Ship Management provides technical and crew management services for various vessel segments; LNG/LPG, Ro-Ro and PCC/PCTC, Container, Cruise, Bulk, and Offshore. Wilhelmsen Ship Management manages from six offices worldwide and has a crewing network of 16 manning offices in 12 countries. Other key services include dry docking services, lay-up services and new building supervision.

 

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Roadmap featured in Lloyd's Register Horizons December issue

This piece originally appeared in the December issue of Lloyd’s Register Horizons. The full issue can be downloaded here.

The sustainable road ahead


Shipping faces major global challenges: from a changing social and volatile economic context; to increased demand for transparency from customers through to investors; to the climate crisis and the need for rapid decarbonisation. These challenges coupled with industry trends will reshape the industry, while bringing opportunities across and beyond the shipping value chain.

The future is never certain – 2020 has been a case in point – but a strong plan can help underpin one’s ambitions. This is particularly true for the global drive on sustainability and all sectors – marine and offshore included – stand to benefit from clear objectives on how to get there.

Developed by members of the Sustainable Shipping Initiative (SSI), the Roadmap to a sustainable shipping industry lays out the pathways and defines tangible milestones to be collectively achieved for a sustainable and successful shipping industry.

The Roadmap consists of six vision areas – Oceans, Communities, People, Transparency, Finance, and Energy – each with its own set of objectives and interrelated milestones to be attained along the industry’s sustainability journey over the coming decades.

It is a resource for stakeholders across the shipping value chain, to be used by companies and organisations to identify and understand their present and future sustainability challenges, as well as the steps and milestones to overcome them. The Roadmap deepens individual and collective understanding of sustainability barriers and opportunities and empowers stakeholders to find innovative solutions.

A roadmap for the shipping industry, by the industry

The Roadmap was initially developed in 2016 as a way to provide an overview of the defining factors, milestones, and priorities needed to achieve a sustainable shipping industry. SSI members identified global challenges and trends expected to affect the industry, publishing the Roadmap as a call to action and kickstarting the debate on how the industry would respond.

In light of rapid and complex changes since its launch, SSI commissioned Lloyd’s Register (in collaboration with SSI members) to review progress against the Roadmap in the first half of 2020. Consisting of a desktop review, expert interviews and stakeholder consultations, the review considered changes in the industry landscape, highlighting progress and identifying gaps. The update process resulted in the consolidation and review of milestones to ensure their ongoing relevance and robustness as indicators of industry progress.

A living document

While we are confident that the outcomes of the recent review will resonate with many, we know that for the Roadmap to remain relevant and track how shipping moves further along in its sustainability journey, it must be a working tool for every stakeholder across the value chain.

As a living document, the Roadmap will continue to evolve with the industry, celebrating successes, pausing for reflection and identifying areas where further work needs to be done. Through a periodic review and update process led by the SSI in consultation with industry stakeholders, we will ensure that progress against the vision areas and milestones is tracked while also capturing changes in the landscape.

But we need your help to do this. Enable us to track industry progress by sharing what you are doing for a sustainable shipping industry.


Roadmap feature - Lloyd's Register Horizons

Following the launch of the updated Roadmap to a sustainable shipping industry, SSI wrote a piece in the December issue of Lloyd’s Register quarterly magazine, Horizons.

Featuring quotes from SSI’s members and explaining in further detail the six vision areas and changes to the updated Roadmap, this piece serves as a useful introduction to the key opportunities and barriers to a sustainable shipping industry.

The Roadmap feature can be seen below. The full issue of Horizons can be downloaded here.

Click to download