A group that includes some of the world’s highest-volume shippers, such as Amazon, Patagonia and IKEA, said that they will be prioritizing zero-emission cargo shipping when they take bids from martime transport companies in January.
The group is the Zero Emission Maritime Buyers Alliance (ZEMBA), roughly three dozen companies that are trying to support the transition of global shipping from fossil fuels to more sustainable fuels. Several kinds of sustainable fuels are being manufactured and distributed on a limited basis, made with renewable energy and using components such as captured CO2, bio residues from farming and forestry, and green hydrogen.
By asking carriers to bid on shipping contracts prioritizing e-fuel use with least 90% emission reduction for their main engine systems, ZEMBA hopes to enable member companies to abate nearly 470,000 metric tons of greenhouse gas (GHG) emissions.
Shipping is responsible for 3% of global emissions and roughly 90% of all goods are delivered via cargo ship. ZEMBA said the industry’s efforts to transition to more sustainable fuels is hindered by several factors including high initial cost of new fuels; not enough commitments by carriers to use fuels if they’re manufactured; scattered demand; slow development of infrastructure such as ports that distribute the new fuels; and insufficient policy support to accelerate the transition to scalable, long-term solutions.
The European Union’s Emissions Trading System (ETS) however, requires shipping companies to purchase and use EU ETS emission allowances for each ton of reported CO2 or equivalent. In 2025, they must cover 40% of emissions, with the amount gradually increasing to 100% in 2027.
As a block, ZEMBA’s members have significant clout to influence to acceleration of the zero-emission shipping transition, and doing so will also help the members reduce their own emissions and meet regulatory demands. ZEMBA hopes to catalyze what would amount to 1.4 million twenty-foot containers transported across the Pacific Ocean by e-fuels, assuming a benchmark distance of Shanghai to Los Angeles.
“ZEMBA is making history by voluntarily catalyzing commercial e-fuel deployment through our next collective tender,” said Ingrid Irigoyen, President and CEO of ZEMBA. “Our members are demonstrating that freight buyers are willing to make multi-year advanced offtake commitments now to incentivize the creation of new markets for the most scalable solutions, which will be required for them to achieve their 2030 and 2040 climate goals. By creating economies of scale and targeting investment in the right long-term solutions, our members can also accelerate the pace and manage overall costs of this clean energy transition.”
ZEMBA membership has grown to 40 multinational companies, with over 10 new members including AIT Worldwide, dsm-firmenich, Frog Bikes, GEPA, Olyra, Pernod Ricard, Poly Medicure, Sanofi, SEKO Logistics, and Vaude.
