Shipowners Embrace 'Book & Claim' for Greener Freight

Published on:
by KnowESG
KnowESG_Green freight market
Image courtesy of Freepik

Leading shipping companies and freight forwarders have joined forces to create a ground-breaking "book and claim chain of custody" system, which has the support of the Global Maritime Forum (GMF).

This mechanism allows cargo owners to voluntarily book green shipping services that utilise zero- or near-zero-emission fuels, even if these fuels are used on a different voyage.

The adoption of the "book and claim" model presents a unique opportunity to drive decarbonisation efforts in the shipping industry, especially when green fuels are scarce and few ships are equipped to use them.

The coalition, consisting of industry giants such as Hapag-Lloyd, Norden, Oldendorff Carriers, Ocean Network Express, and Torvald Klaveness, alongside DHL Global Forwarding, Keune+Nagel, and Yara Clean Ammonia, aims to unlock voluntary markets for decarbonisation while fostering early action towards sustainable practices.

The Aspen Shipping Decarbonisation Initiative, part of the GMF's Getting to Zero Coalition, has also played a crucial role in gathering freight buyers to demonstrate demand for green shipping solutions.

The "book and claim" system, a form of carbon insetting tailored for shipping services and fuel, allows one party to purchase zero-emission fuel and claim carbon reductions, even when the fuel is utilised by another shipper in a different location. By stimulating early demand from cargo owners and shippers, this innovative system aids shipowners and fuel providers in developing a compelling business case for decarbonisation, even during the exploration of preferred fuel pathways.

While acknowledging challenges in the system's implementation, including concerns about its effectiveness and third-party accreditation, the signatories call upon the Greenhouse Gas Protocol and Science Based Targets initiative to establish a pathway for recognising "book and claim" systems. Furthermore, they urge the International Maritime Organisation to provide guidelines for assessing shipping emissions across the entire fuel life cycle.

Despite being a voluntary system, the coalition's vision aligns with potential future IMO policies, positioning the "book and claim" approach as a pivotal step towards a more impactful and scalable decarbonised shipping industry. The initiative has the potential to pave the way for regulated markets to follow suit in the pursuit of a more sustainable future.

For more environmental news

To view and compare company ESG Ratings and Sustainability Reports across sectors, follow our Company ESG Profiles page.

Source: TradeWinds

Share:
esg
esg
esg
esg

Environment Headlines

Consumer Push for Less Plastic Drives F&B Green Shift

Consumer Push for Less Plastic Drives F&B Green Shift

Green Circle Salons: Greening the Salon Industry

Green Circle Salons: Greening the Salon Industry

Lamborghini's New Sustainable Corporate Look

WBCSD in Wuhan Helps Green Chinese Business

Autel Energy's EVergreen Initiative Drives ESG

Southampton, Singapore Target Green Shipping

Newcastle Uni Students Choose All Vegan Catering

Veridian™: Green Packaging Line Fights Contamination

A Vibrant Festival Transforms: Gen Z's Green Holi

IEA Report Says Fossil Fuels Less Used in 2023