# Amazon and others commit to using zero-carbon shipping fuels by 2040 Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2021-10-20 Category: BUSINESS Category URL: https://financedigest.com/category/business Meta Title: Amazon and IKEA to Adopt Zero-Carbon Marine Fuels by 2040 Meta Description: Joining the Aspen Institute initiative, companies commit to cleaner ocean shipping fuel to reduce CO2 emissions and accelerate decarbonisation in the maritime URL: https://financedigest.com/amazon-and-others-commit-to-using-zero-carbon-shipping-fuels-by-2040html ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2021-10-20t130634z5lynxmpeh9i0onrtroptp4amazon-france-1736837539798-compressed.jpg) By Jonathan Saul LONDON (Reuters) -Amazon.com Inc and IKEA are among commercial users of container shipping that will opt for zero-carbon marine fuels by 2040 in a new initiative aimed at speeding up decarbonisation in the maritime sector, executives said on Tuesday. With about 90% of world trade transported by sea, global shipping accounts for nearly 3% of the world’s CO2 emissions and the sector is under growing scrutiny to become cleaner. The initiative, which was organised by the non-profit Aspen Institute and has nine signatories so far also including Unilever and Michelin, [sets a goal for companies to only purchase ocean freight services powered](https://www.financedigest.com/negotiating-our-future-youth-set-to-grab-power-roles-at-cop27.html "‘Negotiating our future’: Youth set to grab power roles at COP27") by scalable zero-carbon fuels by 2040. The [time to act](https://www.financedigest.com/time-to-act-as-cybercriminals-hot-on-the-heels-of-finance-sector.html "Time to act as cybercriminals hot on the heels of finance sector") is now,” said Edgar Blanco, director for net-zero carbon at Amazon. Elisabeth Munck af Rosenschöld, sustainability manager for supply chain [operations at Inter IKEA](https://www.financedigest.com/ikea-stores-owner-ingkas-annual-operating-profit-rises-9.html "IKEA stores owner Ingka’s annual operating profit rises 9%") Group, said working with others was crucial for developing cleaner ocean shipping fuel. The voice of the cargo owners is [important since we are one of the stakeholders to enable the transformation in the industry,” she told Reuters](https://www.financedigest.com/indonesia-to-tighten-used-shoe-import-controls-after-reuters-report.html "Indonesia to tighten used shoe import controls after Reuters report"). We are not willing to automatically [pay a premium](https://www.financedigest.com/finnish-businessman-zilliacus-ready-to-pay-premium-for-manchester-united.html "Finnish businessman Zilliacus ready to pay premium for Manchester United") for sustainability, but we are willing to collaborate and to co-create the solutions and share the necessary investments. Boston Consulting Group estimates that the [global shipping industry will need $2.4 trillion](https://www.financedigest.com/floods-other-water-related-disasters-could-cost-global-economy-5-6-trillion-by-2050-report.html "Floods, other water-related disasters could cost global economy .6 trillion by 2050 -report") in investments to achieve net-zero emissions by 2050. The move will require the swift development of zero or low-emission [fuels and new designs for ships](https://www.financedigest.com/oil-spills-and-near-misses-more-ghost-tankers-ship-sanctioned-fuel.html "Oil spills and near misses: more ghost tankers ship sanctioned fuel"). A surge in demand for [retail goods while people have been stuck at home due to lockdowns has led to record high container shipping](https://www.financedigest.com/amazon-other-retailers-revamp-free-shipping-as-costs-soar.html "Amazon, other retailers revamp ‘free’ shipping as costs soar") rates in recent months, compounded by port disruptions, which has also led to higher costs for cargo users. Michelle Grose, head of logistics at Unilever, said logistics [accounted for 15% of the group’s](https://www.financedigest.com/lebanese-bank-closes-over-30-british-held-accounts-after-uk-ruling-depositors-group.html "Lebanese bank closes over 30 British-held accounts after UK ruling-depositors’ group") total greenhouse gas emissions footprint, and Unilever was “encouraging our existing carriers to switch to cleaner fuels. “By signalling our combined commitment to zero-emission shipping, we are confident that we will accelerate the transition at the pace and the scale that is needed.” Environmental groups in the Ship It Zero [green coalition said the announced commitments](https://www.financedigest.com/green-cloud-one-way-your-company-can-commit-to-sustainability.html "Green Cloud: one way your company can commit to sustainability") were “historic, but too weak”, and urged the signatories to switch entirely to zero-emissions ships by 2030. If major retail brands truly want to do their fair share on [climate change](https://www.financedigest.com/deloitte-research-reveals-inaction-on-climate-change-could-cost-the-worlds-economy-us178-trillion-by-2070.html "Deloitte research reveals inaction on climate change could cost the world’s economy US8 trillion by 2070"), they need to be on a course correction now, not 19 years from now,” said Kendra Ulrich at environmental group Stand.earth, a member of Ship It Zero. Michael Field, senior equity analyst at Morningstar, said the pledge by the companies was welcomed. Although 2040 is clearly a long time away, it certainly gets the ball rolling on [investment in clean technologies and will most likely encourage other large](https://www.financedigest.com/large-investment-success-for-basingstoke-cybersecurity-start-up.html "Large investment success for Basingstoke cybersecurity start-up") corporations to follow suit, perhaps with even more near-term commitments,” Field said. The United Nations [aims to reduce the shipping industry’s](https://www.financedigest.com/activision-aims-to-help-uk-regulator-better-understand-our-industry.html "Activision aims to help UK regulator ‘better understand our industry’") greenhouse gas emissions by 50% from 2008 levels by 2050, with growing calls for a more ambitious target of full decarbonisation by 2050. (Reporting by Jonathan Saul; Editing by Susan Fenton and Jan Harvey) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---