BIFAlink
Policy & Compliance
www.bifa.org
outline to make Members aware of the initiatives, which are in all probability the first of many. In air, AF-KLM Cargo has launched a new way of offering sustainable aviation fuel (SAF) to customers by giving them an option of how much to use on each flight. It has introduced a ‘goSAF’ element to its booking portal, which can be set at one of four elements of contribution for each shipment, with an emission and cost calculator to help customers decide. Airlines are indicating that customers know something needs to be done but are wary of how much GHG emissions will be reduced by and the additional costs. SAF, which is in its infancy and not available globally, is four times as expensive as conventional aviation fuels. It is hoped that by giving customers the option of selecting an amount of SAF per flight, albeit at an increase in cost which might add 5% to 10%, this is seen as achievable. At the same time some airlines are already adding SAF to their aviation fuels. The amount may be small, between 0.5% and 1%, but it is seen as a step in the right direction. One of the biggest blockers to extending the use of SAF is refining capacity; it will be difficult to meet anticipated demand. In maritime we are seeing the development of sustainable biofuels and their use, particularly in the shortsea market. As in aviation, this is often mixed with conventional fuels. Bunkering arrangements are easier to establish on shorter routes with vessels more frequently returning to a specific port. Biofuels trials For instance, Samskip began biofuels trials in 2019, on board the 800 teu Samskip Endeavour as a routine part of services between the Netherlands and Ireland. This has now been extended, at the time of writing, to another three vessels. Initially using a biofuel blend achieved a 30% CO 2 reduction; more competitive pricing enabled the line to integrate a 100% biofuel from 2021, leading to a 90% reduction. These developments must be seen against the IMO’s 2030 target to cut greenhouse gas emissions from ships by 40%, with a 50% target set for 2050. Nobody is going to pretend that carbon reduction will be easy – it will not, it will be as big a change as the switches from sail to coal and then to oil as the motive power for ships. The elephant in the room is the cost, not just of producing the new fuel but also establishing the bunkering arrangements. One thing that has to be noted is that change has significant repercussions and the change to more sustainable fuels must not be achieved by creating negative environmental impacts elsewhere.
With ambitious targets in place to cut greenhouse gas emissions in the transport sector, BIFAlink takes a look at how changes in fuel are developing Fuels of the future
The transport sector is responsible for nearly a quarter of Europe’s greenhouse gas (GHG) emissions. In addition, this sector has proven difficult to decarbonise, having not shown the same decreases in GHG emissions since 1990 as other sectors. BIFA has maintained a watching brief on environmental issues over a period of time and has produced information as appropriate. The environment is a diverse subject; BIFA has for some time decided that it should focus on core subjects impacting its Members including low emission fuels and subjects such as waste, including packaging. Drivers of change Much is made of phrases such as ‘carbon neutral’ and ‘net-zero’; being realists, we believe that what will drive change will be the availability of new technology and consumer attitudes. It will need a reduction in consumer demand and a willingness to pay more for goods due to higher transport costs. We have seen the introduction of new fuels, but there have been some false starts. For instance Shell closed its three hydrogen filling stations due to a lack of demand, but the company emphasised that it would continue research in the potential use of the gas to fuel HGVs. Most organisations wish to portray a positive image; when something goes wrong a senior executive usually has to make a public apology. Similarly, fear of a negative reaction encourages the adoption of policies that it is hoped will find
public favour. For instance, the Ship It Zero campaign has recently heavily criticised Walmart for its failure to join in with emissions abatement measures, which would have included from our perspective the commitment to reduce emissions from its supply chains. This put the retailer out of step with three other large US retailers – IKEA, Amazon and Target – all of which have committed to decarbonising their supply chains by 2040. We have already
started to see banks favour sustainable investment, and now campaigners are
anticipating that the transition to carbon neutral supply chains will place pressure on carriers to shift to clean energy – in effect it will create zero emission demand. Whether it is a coincidence or not, since July 2021, Maersk has ordered 18 methanol-powered ships, and COSCO and CMA eight each. Also, in October, the European Parliament approved targets to cut the greenhouse gas intensity of energy in marine fuels under the Fuel EU Maritime Package. Reductions in energy – measured in grams of CO 2 equivalent per megajoule – begin at 2% from 1 January 2025, rising to 6% from 2030, 13% by 2035 and then five yearly increments thereafter to 80% by 2050. The curbs also require all containerships to connect to onshore power at berth for all port calls from 2030, unless they use zero emission technology. There have been developments in both the type of fuel available and schemes allowing users to pay for them. We would like to examine these in
8
January 2023
Made with FlippingBook Annual report maker