Market-led solution reduces shipping’s carbon dioxide emissions. Ahead of COP21, 26 of the 35 charterers that include vessel efficiency in their supply chain selection have come forward to highlight their proactive measures on climate change.
By using the Greenhouse Gas (GHG) Emissions Rating to find the more efficient vessels these industry leaders are using their influence to incite change in the maritime industry by rewarding ship owners that prioritise efficiency.
Following in the footsteps of early adopters Cargill, Huntsman and UNIPEC UK the following have come forward to announce their use of the GHG Emissions Rating:
• Baere Maritime
• BHP Billiton
• Dubai Supply Authority
• Hudson Shipping Lines
• Incitec Pivot Limited
• Noble Chartering
• Olin - Blue Cube
• Par Pacific – HIE
• Rio Tinto
• Saudi Aramco Products Trading Company
• Scorpio Group
• Targa Resources
• The Mosaic Company
• Z Energy
Developed in 2010 in response to customer demand, the GHG Emissions Rating is a tool developed by RightShip, the maritime risk management specialist. The tool is available free of charge to all RightShip customers and at ShippingEfficiency.org and allows charterers and other stakeholders to assess the efficiency of vessels. It utilises an A to G scale where A represents the most efficient ships and G the least efficient.
It enables companies to find the more efficient vessels and avoid chartering inefficient vessels, thus lowering fuel bills while also helping them to calculate and benchmark their carbon footprint from shipping.
The 35 charterers that utilise the GHG Emissions Rating collectively undertake over 26,000 vessel movements and ship more than two billion dead weight tonne annually.
Warwick Norman, CEO, RightShip said: “There has been a growing chorus of calls from within industry and The Organisation for Economic Co-operation and Development’s International Trade Foundation, among others, for the maritime industry to take decisive action to reduce shipping’s collective carbon dioxide emissions. These 35 charterers have taken proactive measures and are taking action on climate change now.”
“This is good news for the environment, it’s good news for our customers as it supports their company corporate social responsibility policy while saving them money through a reduced bunker bill, and it’s good news for those shippers that invest in efficient vessels. With the continued oversupply of ships in the market, it is a form of natural selection as more efficient vessels are selected," he added.
Rashpal Bhatti, Vice President, Marketing Freight, BHP Billiton said: “BHP Billiton recognise that sustainable growth requires an effective response to climate change. Use of RightShip’s GHG Emissions Rating reflects our Company-wide focus on reducing greenhouse gas emissions and increasing energy efficiency."
Rashpal added: "Use of the GHG Rating to select the more environmentally sustainable vessels minimises the environmental impacts of our operations, at the same time delivering back to our shareholders through use of the more fuel-efficient, cost-effective, vessels.”
Don Briggs, Vice President Global Supply Chain, Incitec Pivot Limited ( IPL) said that minimising environmental impacts and the efficient use of resources is a key part of IPL’s sustainability agenda. “We are committed to a sustainable supply chain and this will help us to reduce our indirect greenhouse gas emissions across our shipping program,” he said.
“Incitec Pivot charters more than 200 vessels annually and by selecting the most efficient vessels we are reducing carbon emissions while rewarding ship owners that invest in more efficient ships.”
“From a business perspective ships that are more efficient will use less fuel so there is a cost benefit as well, which shows how environmental improvements can be linked to improved financial performance.”
Norman added:“Reducing emissions will involve a coordinated approach across all sectors of the maritime sector. We have ports that provide discounted harbor dues, maritime financiers that factor the GHG Emissions Rating into their risk profile and ship owners and managers that invest in technology to improve the efficiency of their vessel.”