Nestlé Continues Their Quest in Cutting Ocean Transport Emissions
In a December 6th press release, Nestlé announced that in 2023 and potentially into next year, half of their global shipments will be shipped via Maersk, CMA CGM or Hapag-Lloyd, who are all planning to reduce freight emissions.
“The agreements we’ve signed with our shipping partners will help us cut emissions and immediately reduce our carbon footprint. We know this is an interim solution and continue to encourage the development of longer term decarbonization solutions in shipping and distribution,” says Stephanie Hart, Executive Vice President and Head of Operations at Nestlé.
Nestlé hopes to reduce its annual greenhouse gas emissions from shipping by around 200,000 metric tons of CO2 equivalent.
European Union’s ETS Starts Being Applied to Shipping January 1st, 2024
In two weeks, European Union’s emission trading system (ETS) will start to be applied to the shipping industry.
The timeline:
Starting January 1st, the EU ETS will begin a phased-out implementation process. According to Clyde & Co., this involves 2024 stakeholders to buy and surrender allowances for 40 percent of their verified emissions for intra-EU voyages, and 20 percent of their emissions for voyages into or out of the EU.
In 2025, this will increase by 70% of emissions for intra-EU voyages.
In 2026, this will increase by 100% of emissions for intra-EU voyages and 50% for voyages into or out of the EU.
Additionally, by September 30th of every year, shipping companies must surrender their allowances from the previous year under the EU ETS, per Clyde & Co’s. report.
ETS surcharges have varied among carriers, which has some industry stakeholders having more questions than answers, which will hopefully happen sooner than later.
We wrote a blog on this topic, feel free to check it out here.