Amazon Signs Deal for Low Carbon Shipping with Maersk

Published on September 18, 2023

Integrated container logistics company A.P. Moller – Maersk and Amazon announced today an agreement for ocean shipping utilizing low to very low GHG emissions biofuels in place of fossil fuels.

The new 2023-2024 agreement includes transport of 20,000 FFE containers using green biofuels, which will result in an estimated 44,600 metric tons of CO2e emissions reduction, according to the companies, equivalent to 50 million pounds of coal burned.

Amazon has set a goal to achieve net zero carbon emissions by 2040 across its value chain. Scope 3 emissions, or those originating in the company’s value chain outside of its direct control, account for over three quarters of Amazon’s emissions footprint. In the company’s recently released sustainability report, Amazon revealed that it succeeded in reducing its Scope 3 emissions by 0.7% in 2022 despite growing revenues by 9%, with emissions cuts driven by areas including building construction, leased buildings and equipment and third-party transportation.

Adam Baker, Vice President of Global Transportation at Amazon, said:

“We’re proud to collaborate with Maersk, a Climate Pledge signatory and leader in shipping logistics, on actionable solutions to decarbonize maritime shipping, We’re excited to have containers on Maersk’s first methanol-enabled feeder vessel and to continue using their biofuel.”

The agreement was made through Maersk’s ECO Delivery program, an offering that allows shippers to replace fossil fuels with green fuels, enabling direct emissions savings, and providing audited CO2 savings and 3rd party verification. According to the companies, Amazon and Maersk have now arranged container shipping using low GHG fuel options for four consecutive years, with the program this year adding the use of green methanol, in addition to biodiesel produced from waste streams.

Maersk has announced a series of moves to expand its low carbon fleet, with 25 methanol-enabled vessels on order, beginning with its order in 2021 for the world’s first carbon-neutral methanol fueled container ship. Earlier this year, the company announced plans for the industry’s first-ever retrofit to convert an existing fossil fuel-powered container vessel to dual-fuel methanol-powered vessel, with plans to retrofit future vessels. The company has announced a series of carbon reduction targets, including goals to achieve net zero gas emissions in 2040 across its entire businesses and all scopes, as well as a 50% reduction in emissions per transported container in its ocean fleet, and a 70% reduction in absolute emissions from fully controlled terminals by 2030.

Narin Phol, President North America at A.P. Moller – Maersk, said:

“Amazon’s record of securing sustainable shipping over the years, no matter the business climate, is testament to its contributions to building a better future. We share a common goal with Amazon to reduce our total GHG emissions to net zero by 2040. As cosigners of the Climate Pledge, we must constantly create new opportunities to make this a decade of action. Decarbonizing shipping is one significant step that is to be combined with many others to protect our future.”

Source: Mark Segal, ESG Today