The Sea Cargo Charter, a group of energy, agriculture, mining, and commodity trading companies, will for the first time assess and disclose the climate alignment of their shipping activities.
According to United Nations agencies, the international shipping industry carries around 80% of world trade flows and is responsible for 2-3% of global greenhouse gas emissions annually.
Large industrial corporations are significant users of international shipping services. The shipping of crude oil, coal, iron ore, grain and other bulk commodities used worldwide make up over 80% of global seaborne trade. The Sea Cargo Charter is a global framework that enables the integration of climate considerations into chartering decisions to favor climate-aligned maritime transport.
Specifically, it establishes a common baseline to assess and disclose whether shipping activities are aligned with adopted climate goals. It also complies with the policies of IMO. This includes its ambition for greenhouse gas emissions from international shipping to peak as soon as possible and to reduce shipping’s total annual greenhouse gas emissions by at least 50% of 2008 levels by 2050.
A standard greenhouse gas emissions reporting process will simplify some of the complexities often associated with reporting. It will encourage a more transparent and consistent approach to tracking emissions, which will be a critical part of making shipping more sustainable
mentioned says Jan Dieleman, President, Cargill Ocean Transportation and Chair of the Sea Cargo Charter drafting group.
What is more, Grahaeme Henderson, Global Head, Shell Shipping & Maritimem added that collaboration such as this, from across the sector, is vital to scale-up customer demand for low- or zero-emissions shipping. It is also crucial in the pursuit of the technological advances to unlock decarbonisation solutions.
Building on this momentum we would like the IMO to use its 2023 strategy review to set the trajectory for the sector to move to net-zero emissions by 2050
The Sea Cargo Charter aims to evolve over time as the IMO adjusts its policies and regulations and when further adverse environmental and social impacts are identified for inclusion. It also plans to support other initiatives developed to address climate, environment, and social risks in shipping, such as the Poseidon Principles.
What is more, the Sea Cargo Charter is applicable to:
- Bulk charterers with interest in the cargo on board;
- Those who simply charter out the vessels they charter in;
- The disponent owners and all charterers in a charterparty chain.
The 17 Founding Signatories of the Sea Cargo Charter include ADM, Anglo American, Bunge, Cargill Ocean Transportation, COFCO International, Dow, Equinor, Gunvor Group, Klaveness Combination Carriers, Louis Dreyfus Company, Norden, Occidental, Shell, Torvald Klaveness, Total, Trafigura, and Ørsted. All other responsible shippers are invited to join the initiative.