Sea Cargo Charter supports Maritime Decarbonisation event in Amsterdam

The Maritime Decarbonisation, Europe: Conference, Awards & Exhibition 2024 will be held on 24 and 25 September in Amsterdam. As part of the Maritime Decarbonisation Series, this event serves as a crucial platform for industry stakeholders to explore strategies and solutions for achieving low-carbon and zero-emission shipping. 

The conference will gather leaders, experts, and innovators from across the maritime sector, offering a comprehensive forum for discussing the industry’s energy transition. The focus will be on practical approaches to reducing environmental impact and aligning with global climate goals. 

As a supporter of this event, the Sea Cargo Charter plays a vital role in promoting responsible ship chartering practices. The Sea Cargo Charter’s global framework enables charterers and shipowners to align their activities with internationally adopted climate goals, thereby contributing to the decarbonisation of shipping. By providing a common, quantitative baseline for assessing and disclosing the climate alignment of chartering activities, the Sea Cargo Charter supports informed decision-making and responsible environmental behaviour within the maritime industry. 

This year, the Sea Cargo Charter expanded its framework to welcome shipowners, allowing them to report on their owned vessels. This adaptation reflects the industry’s evolving needs and underscores the Sea Cargo Charter’s commitment to inclusivity and comprehensive climate action. All charterers and shipowners involved in dry bulk and tanker trades are encouraged to join and contribute to the global effort for a sustainable maritime future. 

The Maritime Decarbonisation event in Amsterdam will offer an opportunity for the industry to unite in its efforts to reduce emissions and build a greener future for shipping. 

Click here for more information on the event and to secure your spot. 

Sea Cargo Charter welcomes new signatory, South32

Copenhagen, 8 August – The Sea Cargo Charter (SCC) is pleased to announce the addition of South32 as its newest signatory. Headquartered in Australia, South32 is a globally diversified mining and metals company. South32 produces commodities including bauxite, alumina, aluminium, copper, silver, lead, zinc, nickel, metallurgical coal and manganese from operations in Australia, Southern Africa and South America.  

“With the inclusion of South32, the Sea Cargo Charter now represents over 20% of bulk goods transported by sea annually, marking a significant milestone in our growth and influence,” said Sea Cargo Charter chair, Rasmus Bach Nielsen, global head of fuel decarbonisation at Trafigura. “This demonstrates our collective commitment to promoting sustainable shipping practices across the industry.” 

Maritime freight is an integral part of South32’s supply chain. The company has a long-term goal to achieve net zero greenhouse gas emissions across scope 1, 2 and 3 by 2050 and a medium-term target to halve operational GHG emissions by 2035, compared to its FY21 baseline. 

“Joining the Sea Cargo Charter is another step in our decarbonisation journey,” said Matthew Gillespie, Vice President, Head of Marketing at South32. “By aligning to the Sea Cargo Charter’s global framework, we can better track our decarbonisation progress against the International Maritime Organization’s decarbonisation trajectory and our net zero goal.”  

In its 2023 Sustainability Development Report, South32 highlighted its ongoing efforts to reduce emissions from shipping, which include monitoring emissions data to understand costs and identify opportunities for increased efficiencies in shipping products and raw materials economically and responsibly. Additionally, South32 is partnering with suppliers and collaborating with customers to further GHG emissions reduction efforts throughout the value chain. 

“The inclusion of South32 is another testament to the Sea Cargo Charter’s goal of a collaborative approach and ambition to enhance transparency in shipping emissions, fostering an environment where decarbonisation can thrive,” said Sea Cargo Charter vice chair Eman Abdalla, global operations & supply chain director at Cargill Ocean Transportation 

As a global framework to assess and disclose the climate alignment of ship chartering activities, the Sea Cargo Charter aims to reduce global shipping’s annual greenhouse gas emissions to net zero by around 2050. This initiative aligns with the goals of the International Maritime Organization, the United Nations agency responsible for regulating global shipping. Its recent scope expansion to fully include ship owners underscores its ambitions.  


About the Sea Cargo Charter    

The Sea Cargo Charter is a global framework for assessing and disclosing the climate alignment of chartering activities. It establishes a common, global baseline to quantitatively assess and disclose whether chartering activities are in line with climate goals set by the UN maritime agency, the International Maritime Organization (IMO). The IMO revised greenhouse gas (GHG) strategy adopted during MEPC80 in July 2023 sets a new ambition to reach net-zero GHG emissions from international shipping by or around, i.e. close to, 2050. The Sea Cargo Charter has recently aligned its ambition with these latest goals by agreeing to report in 2024 and onwards against (i) a full decarbonisation target in 2050, (ii) interim targets in 2030 and 2040 and (iii) the consideration of lifecycle emissions of fuels including further greenhouse gas (GHG) species.    

The Sea Cargo Charter is one of three initiatives based on the same four Principles and developed with the Global Maritime Forum. Together with the Poseidon Principles and the Poseidon Principles for Marine Insurance, they share a common objective: fostering transparency on emissions reporting with the aim of contributing to reducing carbon emissions.  Learn more.  


GMF Media contact:  

  • Molly P. Hannon, Senior Communications Manager  
  • M: +45 53 76 67 87   
  • E: mph@globalmaritimeforum.org  

South32 Media contact: 

  • Miles Godfrey, Media Relations 
  • M: +61 415 325 906 
  • E: miles.godfrey@south32.net 

Can Shipping Catch Up? New Report Demonstrates Shortfall Against New Climate Goals 

  • Urgent action required as new data shows the shipping industry fell behind minimum international climate goals by 17% on average in 2023 – a shortfall of 165 million metric tonnes of CO2e.  
  • Geopolitical developments, limited green fuel options and lack of infrastructure revealed as barriers to progress. 
  • Signs of positive change as transparency on emissions and industry collaboration increase to record levels and higher ambitions are embraced, pushing the industry towards faster decarbonisation. 

Copenhagen, 13 June 2024 – The shipping industry must take urgent action to meet ambitious new climate targets set by the International Maritime Organization (IMO), according to a new report from the Sea Cargo Charter (SCC), a global transparency initiative developed by the Global Maritime Forum. 

New data from the SCC, a global framework representing 20% of global bulk cargo transport, reveals the sector fell short of minimum international climate goals set by the IMO by an average of 17% in 2023, equivalent to 165 million metric tonnes of CO2e. When considering ‘striving’ goals set by the IMO, signatories are on average 22% misaligned, which represents a shortfall of 204 million metric tonnes of CO2e in 2023.  

Currently, dry bulk, general cargo, and tankers account for around 400 million tonnes of CO2 emissions.1 With global trade predicted to quadruple by 2050, emissions will skyrocket without urgent action.    

For the first time, this year the SCC signatories have chosen to voluntarily report against much stricter criteria, including the IMO’s revised GHG Strategy, introduced in July 2023. The strategy set ambitious net-zero emissions targets for 2050, with interim checkpoints in 2030 and 2040. Reporting has also been expanded to include “well-to-wake” emissions, which measure emissions from the extraction of oil to its end use, providing a more comprehensive picture of environmental impact and pushing the industry towards faster decarbonisation. 

Despite the misalignment with the IMO’s revised emissions targets, the report also reveals promising trends. The number of SCC signatories has grown to 37 in 2024, 35 of which are reporting this year – a significant increase from 2022, demonstrating a growing commitment to sustainability and transparency within the industry. Furthermore, the average reporting percentage has shown a steady increase over the past three years, from 80% in 2022 to 93.2%. This year’s report shows that industry collaboration and data sharing is improving.   

This level of transparency is unprecedented in the sector. 

“The Sea Cargo Charter’s expanding coverage of reporting is a testament to its commitment to transparency and accountability, setting a new standard for environmental reporting in the shipping sector,” said Sea Cargo Charter chair Rasmus Bach Nielsen and global head of fuel decarbonisation at Trafigura. “As the Charter continues to attract new members and shape market practices, it underscores the importance of integrating climate considerations into business decisions. These efforts not only enhance emissions transparency but also propel the maritime industry towards a more sustainable future, at a time when action is needed more urgently than ever before.” 

The SCC’s annual disclosure report is at the core of the framework’s mandate to making chartering activities environmentally responsible, by integrating climate considerations into business decisions and enhancing transparency on emissions. The 2024 report, released today, highlights the gap between current emissions and the IMO’s revised strategy for net-zero emissions by 2050. The report shows the importance of commercial and operational decisions on the vessels’ use (such as, instructed speed, cargo and routing optimisation, laden/ballast ratio), innovation and cooperation within the industry to be able to take action in this transition.  

Other identified barriers to cutting emissions are geopolitical disruptions, limited alternative fuel options for long voyages, and a lack of infrastructure to support new technologies. 

From next year, shipowners – not just charterers – will for the first time also be fully able to form part of the annual report, further enhancing transparency across the entire shipping value chain. 

The Findings & Results 

In these scores, negative values indicate alignment with decarbonisation trajectories, while positive values denote misalignment. The simple average score for climate alignment was 16.9% misaligned with the IMO’s ‘minimum’ ambition, with scores ranging from -16.5% to 47.6%. For the IMO’s ‘striving’ ambition, the simple average score was 21.9% above the target, with scores ranging from -14.8% to 54.7%.  

Factors that influenced these scores include the challenges of adapting to longer journey times following geopolitical disruptions, changing operational parameters in ports, commercial choices such as energy-saving retrofit programs, instructed speed, laden/ballast ratio, and deadweight tonnage (DWT) utilisation on laden voyages.

Despite the steeper challenge of meeting the more ambitious IMO goals, signatories remain optimistic and committed to the continuously evolving SCC framework, which enables them to measure performance against a quantifiable industry standard while being part of a likeminded progressive group. 

The growing number of signatories included, and the increasing reporting percentage of eligible activities covered in this report (93.2% on average) signals that many in the industry take the challenge seriously, using transparency on their emissions to drive positive change.  

The SCC’s 2024 report paints a picture of an industry aware of the climate challenge and actively seeking solutions. Increased transparency, collaboration between charterers and shipowners, and alignment with the IMO’s revised strategy are all positive steps in the right direction. The shipping industry has a long way to go, but with continued transparency, commitment, and innovation, it can navigate a more sustainable future. 

The 2024 Annual Disclosure Report was produced by the Global Maritime Forum, which performs secretariat services for the Sea Cargo Charter with expert support provided by UMAS and the Smart Freight Centre.  


Media contact: Molly P. Hannon, Senior Communications Manager  

M: +45 5376 6787   

E: mph@globalmaritimeforum.org  


About the Sea Cargo Charter 

The Sea Cargo Charter is a global framework for assessing and disclosing the climate alignment of chartering activities. It establishes a common, global baseline to quantitatively assess and disclose whether chartering activities are in line with climate goals set by the UN maritime agency, the International Maritime Organization (IMO). The IMO’s initial greenhouse gas strategy prescribed that international shipping must reduce its total annual emissions by at least 50% of 2008 levels by 2050, whilst pursuing efforts towards phasing them out as soon as possible in this century. The IMO revised greenhouse gas (GHG) strategy adopted during MEPC80 in July 2023 sets a new ambition to reach net-zero GHG emissions from international shipping by or around, i.e. close to, 2050. The Sea Cargo Charter has recently aligned its ambition with these latest goals by agreeing to report in 2024 and onwards against (i) a full decarbonisation target in 2050, (ii) interim targets in 2030 and 2040 and (iii) the consideration of lifecycle emissions of fuels including further greenhouse gas (GHG) species.   

The Sea Cargo Charter is one of three initiatives based on the samefour Principlesand developed with the Global Maritime Forum. Together with thePoseidon Principlesand thePoseidon Principles for Marine Insurance, they share a common objective: fostering transparency on emissions reporting with the aim of contributing to reducing carbon emissions. Learn more.  

Following scope expansion, Sea Cargo Charter hosts its 4th annual meeting in Oslo

Oslo, Norway, 14 May 2024 – Yesterday, the Sea Cargo Charter held its fourth annual meeting at Klaveness Combination Carriers’ offices in Oslo, Norway. Co-hosted by Equinor, and chaired by Trafigura and Cargill, signatories gathered a few weeks before the publication of the Sea Cargo Charter’s latest annual disclosure report on 13 June. The agenda centred on discussing the latest developments within the Sea Cargo Charter Association while fostering dialogue on shared challenges and opportunities for the shipping industry’s decarbonisation efforts. Decisions were taken on governance, finances and reinforced reporting modalities. Other topics discussed included emissions setting, operational efficiency, and upcoming IMO policy measures.  

“Our Annual Meeting arrives at a critical moment. Our signatories are poised to report against the latest and more ambitious IMO targets for the first time,” said Rasmus Bach Nielsen, Sea Cargo Charter Chair and Global Head of Fuel Decarbonisation at Trafigura. “This significant step stems from a collective decision made a few months after the IMO’s Revised (GHG) Strategy, further demonstrating our commitment to aligning with evolving environmental standards.” 

While the IMO is still to adopt key measures for implementing the renewed and significantly higher ambitions in its revised strategy, the  Sea Cargo Charter signatories decided to update their decarbonisation trajectories  to match the new ambition of a 100% reduction of emissions from international shipping by 2050 with intermediary checkpoints in 2030 and 2040 and report on a well-to-wake basis, taking into account the full-lifecycle approach to emissions from fuels.  

As a result, signatories are measuring their emissions intensity this year against two trajectories: the ‘minimum’ and the ‘striving’ trajectories. This is significantly more ambitious than the previous Sea Cargo Charter reporting measuring against the IMO’s initial GHG strategy, which aimed for a 50% reduction in emissions from international shipping in 2050 compared to 2008 levels.  

To further enhance its impact, the Sea Cargo Charter recently expanded its scope to fully allow shipowners to join the Association and monitor emissions against a shared baseline and common methodology with charterers.  

‘As an industry, we have proven that collaboration is of utmost importance. The Sea Cargo Charter is no exception, serving as a platform for shipowners & charterers to collaborate and cooperate in monitoring emissions’ said Sea Cargo Charter Vice Chair Eman Abdalla, Global Operations & Supply Chain Director at Cargill Ocean Transportation. “This expansion reflects our commitment to fostering greater collaboration and accountability across the maritime industry in our collective pursuit of decarbonisation.” 

Signatories made significant decisions at this year’s Annual Meeting in Oslo regarding reporting and governance, showcasing the ambition of its members to amplify impact and enhance transparency on shipping emissions. Signatories notably decided upon the following: 

  • To gradually increase the reporting requirements by making it mandatory for charterers and shipowners who are signatories to report any voyage unless they time-charter out a vessel. This constitutes an increase in the number of reporting segments mandatory for signatories and will apply for data collected as of 2025 and reported in 2026.  
  • To increase the level of information to be disclosed publicly in next year’s SCC Annual Disclosure Report by adding the reporting rate of each signatory and whether their data was verified. Therefore, it brings more transparency and incentivises complete reporting and verification accuracy.   

Steering Committee elections: Signatories elected Copenhagen Commercial Platform (CCP) as a new member and re-elected Bunge and Chevron as members of their Steering Committee.   

Christian Bonfils, CEO of Copenhagen Commercial Platform (CCP), will represent CCP in the SteerCo. CCP has been a Sea Cargo Charter signatory since 2022 : “We are pleased to be elected to the Steering Committee. The Sea Cargo Charter plays an important role in decarbonising the maritime industry,” said Christian Bonfils. “We look forward to being more active and contributing with our expertise.” 

Marcio Valentim Moura (Global Logistics Director) and Matt Turns (General Manager for Strategy & Business Performance) are entering their second mandate for Bunge and Chevron, respectively, for the next two years.   

The Sea Cargo Charter Steering Committee is now composed of 15 members: ADM, Anglo American, Bunge, Cargill Ocean Transportation, Chevron, Copenhagen Commercial Platform, Dow, Equinor, Louis Dreyfus Company, Norden, Shell, Torvard Klaveness, TotalEnergies, Trafigura Maritime Logistics, Viterra.  More information about the Steering Committee is available here. 

Sea Cargo Charter Chair Rasmus Bach Nielsen (Trafigura), Vice-Chair Eman Abdallah (Cargill), and Treasurer Justine Clark (Shell) are in the middle of their ongoing terms. 


About the Sea Cargo Charter 

The Sea Cargo Charter is a global framework for assessing and disclosing the climate alignment of chartering activities. It establishes a common, global baseline to quantitatively assess and disclose whether chartering activities are in line with climate goals set by the UN maritime agency, the International Maritime Organization (IMO). The IMO’s initial greenhouse gas strategy prescribed that international shipping must reduce its total annual emissions by at least 50% of 2008 levels by 2050, whilst pursuing efforts towards phasing them out as soon as possible in this century. The IMO revised greenhouse gas (GHG) strategy adopted during MEPC80 in July 2023 sets a new ambition to reach net-zero GHG emissions from international shipping by or around, i.e. close to, 2050. The Sea Cargo Charter has recently aligned its ambition with these latest goals by agreeing to report in 2024 and onwards against (i) a full decarbonisation target in 2050, (ii) interim targets in 2030 and 2040 and (iii) the consideration of lifecycle emissions of fuels including further greenhouse gas (GHG) species.   

The Sea Cargo Charter is one of three initiatives based on the same four Principles and developed with the Global Maritime Forum. Together with the Poseidon Principles and the Poseidon Principles for Marine Insurance, they share a common objective: fostering transparency on emissions reporting with the aim of contributing to reducing carbon emissions.   Learn more


Media contact: Molly P. Hannon, Senior Communications Manager 

M: +45 5376 6787  

E: mph@globalmaritimeforum.org 

The Sea Cargo Charter expands its scope to accelerate shipping’s decarbonisation

Copenhagen, 2 April 2024 – The Sea Cargo Charter (SCC), a global framework for aligning chartering activities with responsible environmental behaviour to promote international shipping’s decarbonisation, is expanding its scope four years after its inception. With 37 signatories already on board, this expansion aims to increase the initiative’s impact on transparency and shipping decarbonisation across the entire industry by allowing charterers and shipowners to monitor and report their emissions under a common framework.  

The Sea Cargo Charter provides a common, global baseline for assessing and disclosing the climate alignment of chartering activities of charterers and shipowners. It enables signatories to quantitatively evaluate and disclose whether their chartering activities align with internationally adopted climate goals, thus serving as a crucial tool to support responsible decision-making.  

“The expansion of the Sea Cargo Charter to fully include shipowners signals a new milestone in the global endeavour to decarbonise shipping,” said Rasmus Bach Nielsen, Sea Cargo Charter Chair and Global Head of Fuel Decarbonisation at Trafigura. “By uniting owners and charterers under a common framework and methodology, we hope our initiative can further enhance transparency and foster collaboration across the industry, thereby amplifying its impact.”  

The Charter, launched in 2020, establishes a common baseline and enables charterers and now shipowners to assess whether their activities align with internationally adopted climate goals, as outlined by the International Maritime Organization. This expansion to shipowners is about increasing impact and maximising collaboration between business partners, intending to expedite the transition to decarbonised shipping through more transparency across the whole industry. Notably, the Sea Cargo Charter is consistent with the ambitious goals set by the IMO’s 2023 GHG Strategy. Signatories will measure their climate alignment against the latest 2023 IMO ambitions for the first time in its forthcoming annual report, scheduled for publication in June.  

“By enabling broader collaboration within the Sea Cargo Charter, we are forging a new path committed to sustainable practices and transparency for the industry,” said Eman Abdalla, Global Operations & Supply Chain Director at Cargill Ocean Transportation. ‘Widening access to the Charter acknowledges shipowners’ crucial role in reducing shipping emissions, enabling key stakeholders to report transparently within a unified framework and gain crucial data-driven insights to reduce emissions.”  

Find press release here


For media inquiries, please contact:  

Molly P. Hannon, Senior Communications Manager  

Email: mph@globalmaritimeforum.org
Mobile: +45 53 76 67 87
 

About the Sea Cargo Charter  

The Sea Cargo Charter is a global framework for assessing and disclosing the climate alignment of chartering activities. It establishes a common, global baseline to quantitatively assess and disclose whether chartering activities are in line with climate goals set by the UN maritime agency, the International Maritime Organization (IMO). The IMO’s initial greenhouse gas strategy prescribed that international shipping must reduce its total annual emissions by at least 50% of 2008 levels by 2050, whilst pursuing efforts towards phasing them out as soon as possible in this century. The IMO revised greenhouse gas (GHG) strategy adopted during MEPC80 in July 2023 sets a new ambition to reach net-zero GHG emissions from international shipping by or around, i.e. close to, 2050. The Sea Cargo Charter has recently aligned its ambition with these latest goals by agreeing to report in 2024 and onwards against (i) a full decarbonisation target in 2050, (ii) interim targets in 2030 and 2040 and (iii) the consideration of lifecycle emissions of fuels including further greenhouse gas (GHG) species.  

The Sea Cargo Charter is one of three initiatives based on the same four Principles and developed with the Global Maritime Forum. Together with the Poseidon Principles and the Poseidon Principles for Marine Insurance, they share a common objective: fostering transparency on emissions reporting with the aim of contributing to reducing carbon emissions.  

 

EGA first aluminium producer to join global shipping and maritime sustainability initiative

United Arab Emirates, [20] December 2023 – Emirates Global Aluminium, the world’s largest ‘premium aluminium’ producer and the biggest industrial company in the United Arab Emirates outside oil and gas, has become the first aluminium producer and the first Middle East company to join the Sea Cargo Charter.  

The Sea Cargo Charter sets a global framework to assess and disclose the climate alignment of ship chartering activities to reduce the annual greenhouse gas emission of global shipping to net zero by around 2050, in line with the goals of the International Maritime Organization, the United Nations agency responsible for regulating global shipping. 

EGA ships some 22 million tonnes of aluminium, bauxite and raw materials around the world each year. While the production of raw materials accounts for the bulk of EGA’s scope 3 emissions, global shipping accounts for a meaningful proportion.  

The global shipping industry as a whole was responsible for two per cent of anthropomorphic greenhouse gas emissions in 2022, according to the International Energy Agency.  

Abdulnasser Bin Kalban, Chief Executive Officer of Emirates Global Aluminium, said: “The aluminium EGA produces plays an essential role in the development of a more sustainable society. It is also important how sustainably it is produced, and this includes shipping raw materials to our production sites and bauxite and metal to our customers worldwide. EGA has committed to reaching net zero by 2050, including from our supply chain. Joining the Sea Cargo Charter will enable us to further improve our performance and achieve our goal to reach net zero from supply chain activities.”  

Eman Abdalla, Sea Cargo Charter Vice Chair, and Global Operations Director at Cargill, said: “We are pleased to have EGA as the first global aluminium producer and Middle East industrial company to join the Sea Cargo Charter. The journey to more sustainable shipping starts with a commitment to transparency, a unified methodology, and emissions reporting. We hope EGA’s example inspires other participants in the aluminium industry to follow a similar path towards carbon emissions transparency in their supply chain.” 

In 2022, EGA signed an agreement with one of its shipping partners, “K” Line to develop and implement new marine decarbonisation technologies suitable for EGA’s bulk cargo shipping routes in the eastern Atlantic Ocean, Mediterranean Sea and Indian Ocean.
Ends 

 Media contact at EGA: 

Media contact for Sea Cargo Charter:  

About EGA 

Since 1975, when it was founded as Dubai Aluminium by His Highness Sheikh Rashid bin Saeed Al Maktoum, Emirates Global Aluminium has been innovating aluminium to make modern life possible. 

Today EGA is the world’s biggest ‘premium aluminium’ producer and the largest industrial company in the United Arab Emirates outside the oil and gas industry.  

EGA is equally-owned by Mubadala Investment Company of Abu Dhabi and the Investment Corporation of Dubai. It is the largest company jointly owned by the two Emirates. 

EGA is an integrated aluminium producer, with operations from bauxite mining to the production of cast primary aluminium. EGA operates aluminium smelters in Jebel Ali and Al Taweelah, an alumina refinery in Al Taweelah and a bauxite mine and associated export facilities in the Republic of Guinea. 

EGA’s aluminium is the second largest made-in-the UAE export after oil and gas. In 2022, EGA sold 2.72 million tonnes of cast metal. EGA is the only UAE producer and makes the UAE the fifth largest aluminium producing nation in the world.  

EGA has more than 400 customers in over 50 countries. In 2022, value-added products accounted for 78 per cent of EGA’s cast metal sales.  

EGA’s aluminium is primarily used in the construction, automotive, packaging, aerospace and electronics industries. 

Around 10 per cent of EGA’s aluminium production is sold in the UAE to around 26 downstream aluminium companies that make products with EGA’s aluminium. The growing broader aluminium sector in the UAE supports almost 48,000 jobs. EGA itself employs around 6,800 of these people including more than 1,200 UAE Nationals.  

EGA has focused on technology development for over 30 years. EGA has used its own technology for every smelter expansion since the 1990s and has retrofitted all its older production lines. In 2016 EGA became the first UAE industrial company to licence its core industrial process technology internationally. 

As a corporate citizen of the UAE, EGA aspires in all its operations to be measured amongst the world’s leading metals and mining companies in meeting its environmental and social responsibilities. In 2017, EGA became the first Middle East headquartered company to join the Aluminium Stewardship Initiative, a global programme to foster greater sustainability and transparency in the aluminium industry. In 2019, EGA’s Al Taweelah site became the first in the Middle East to receive certification from ASI for its sustainability practices and performance. EGA’s Jebel Ali site was certified in 2021. EGA’s bauxite mining subsidiary, Guinea Alumina Corporation, achieved the first ASI certification in Guinea in 2023. Al Taweelah alumina refinery was certified later in 2023, with the result that EGA now has all of its global operations certified to the aluminium industry’s internationally recognised standard for environmental and social performance and governance. 

In 2021, EGA began production of CelestiAL solar aluminium, produced with solar power from the Mohammed Bin Rashid Al Maktoum Solar Park on the outskirts of Dubai. EGA is the first company in the world to make aluminium commercially using the power of the sun.   

EGA was formed in 2014 through the merger of Dubai Aluminium and Emirates Aluminium. 

EGA’s Jebel Ali aluminium smelter began production as DUBAL in 1979. At almost five square kilometres, this site is five times bigger than Dubai Mall. 

EMAL started production in 2009 and its Al Taweelah aluminium smelter was the largest single-site aluminium smelter in the world when completed. EGA’s Al Taweelah site is five times bigger than Al Maryah Island at six square kilometres.  

EGA has its own power stations at both sites, producing electricity to meet its needs. EGA’s electricity generation capacity is 6,474 megawatts, making EGA the third largest electricity generator in the UAE after the Dubai and Abu Dhabi utilities. EGA also produces water through desalination units at its power plants.  

EGA began production at Al Taweelah alumina refinery in April 2019. EGA’s alumina refinery is the first in the UAE and only the second in the Middle East. The project reduces the UAE’s dependence on imported alumina and supplies over 45 per cent of EGA’s needs. 

Bauxite exports from Guinea Alumina Corporation, EGA’s wholly-owned subsidiary in Guinea, began in August 2019. The GAC project was one of the largest greenfield investments in Guinea in over 40 years. 

About the Sea Cargo Charter

The Sea Cargo Charter establishes a framework for assessing and disclosing the climate alignment of ship chartering activities around the globe. It sets a benchmark for what it means to be a responsible charterer in the maritime sector and provides actionable guidance on how to achieve this. The Sea Cargo Charter is consistent with the policies and ambitions of the International Maritime Organization (IMO), including its ambition for net-zero emissions from international shipping “by or around” 2050, with indicative checkpoints in 2030 and 2040 compared to 2008. As a result, the Sea Cargo Charter enables bulk ship charterers – and soon also ship owners – to align their activities with responsible environmental behaviour and incentivise international shipping’s decarbonisation – to shape a better future for maritime shipping and society. 

The Sea Cargo Charter is one of three initiatives based on the same four Principles and developed with the Global Maritime Forum. Together with the Poseidon Principles and the Poseidon Principles for Marine Insurance, they share a common objective: fostering transparency on emissions reporting with the aim of contributing to reducing carbon emissions. 

 

 

Sea Cargo Charter to align with new emission goals

The Sea Cargo Charter (SCC) is to revise its reporting framework, aligning its trajectory with the International Maritime Organization’s (IMO) revised greenhouse gas (GHG) strategy and expanding its current scope to include ship owners.

COPENHAGEN, 5 December – The Sea Cargo Charter (SCC) will significantly revise its reporting ambition, aligning its trajectory with emission reduction goals in response to the International Maritime Organization’s (IMO) revised greenhouse gas (GHG) strategy adopted during MEPC80 in July 2023.

In parallel with aligning its trajectory, the SCC is set to expand its current membership scope to include shipowners, demonstrating a commitment to industry inclusivity and sustainable practices. With 37 signatories representing over 17% of total bulk cargo transported by sea annually, the SCC unites to enhance data sharing, boost transparency, and create accountability across the maritime supply chain. See the list of 37 Signatories here.

“Today, as representatives of the Sea Cargo Charter, we announce a revised trajectory in response to the latest IMO ambition unveiled during MEPC80 in July,” said Rasmus Bach Nielsen, Sea Cargo Charter Chair and Global Head of Fuel Decarbonisation at Trafigura. “The Sea Cargo Charter aligns shipping emissions reporting with the new IMO ambition and expands its scope, allowing all ship owners to report under the same framework if they so wish—further demonstrating the Charter’s proactive stance in fostering transparency and sustainability across the maritime industry.”

Decarbonisation Trajectory Update

The SCC is designed as an ever-evolving framework that assesses and publishes climate alignment of charterers who voluntarily decide to join, calculating the degree to which the voyage carbon intensity of a vessel category is in line with global decarbonisation trajectory(ies). Together with the Poseidon Principles and the Poseidon Principles for Marine Insurance, initiatives like the Sea Cargo Charter contribute significantly to promoting comprehensive climate considerations amongst key players in the maritime sector.

The updated alignment with the IMO’s latest ambition to reach net-zero GHG emissions in the shipping sector by approximately 2050, featuring indicative checkpoints in 2030 and 2040 and employing a full lifecycle well-to-wake approach [1], underscores the commitment to support charterers and shipowners throughout the transition process, offering data-driven insights on best practices and opportunities for emission reduction.

The IMO’s evolving ambition is propelling the industry closer to a 1.5°C future. Building on past efforts, signatories will continue to evaluate the necessity of an additional trajectory for consistent climate alignment reporting with a 1.5°C future.

Robust framework for shipowners

By broadening the current scope, to be effective in 2024, signatories incorporate the key role played by ship owners in the maritime supply chain into the initiative. The objective is to elevate transparency on emissions across the shipping ecosystem with the end goal to reduce emissions, offering ship owners a robust and standardised methodology and framework for reporting and disclosing emissions data associated with their activities.

“Adopting IMO’s revised GHG strategy as well as opening the door to owners are two critical milestones for the Sea Cargo Charter as this will accelerate gaining traction within the industry,” said Eman Abdalla, Global Operations & Supply Chain Director at Cargill Ocean Transportation. “By increasing accessibility, improving the quality of data and encouraging the collaboration between charterers and shipowners, we expect a knock-on effect of pushing standards for monitoring emissions and facilitating well-informed decision-making.”

[1] considering from now on a full life cycle approach of greenhouse gas (GHG) emissions (move from tank-to-wake (TtW) to well-to-wake (WtW)

For media inquiries, please contact:

Molly P. Hannon, Senior Communications Manager

Email: mph@globalmaritimeforum.org

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About the Sea Cargo Charter

The Sea Cargo Charter is a global framework for assessing and disclosing the climate alignment of chartering activities. It establishes a common, global baseline to quantitatively assess and disclose whether chartering activities are in line with climate goals set by the UN maritime agency, the International Maritime Organization (IMO). The IMO’s initial greenhouse gas strategy prescribed that international shipping must reduce its total annual emissions by at least 50% of 2008 levels by 2050, whilst pursuing efforts towards phasing them out as soon as possible in this century. The IMO revised greenhouse gas (GHG) strategy adopted during MEPC80 in July 2023 sets a new ambition to reach net-zero GHG emissions from international shipping by or around, i.e. close to, 2050. Three major changes from the current Sea Cargo Charter methodology are required in order to align the SCC ambition to the IMO Revised Strategy which are (i) decarbonisation target in 2050, (ii) interim targets and (iii) the consideration of lifecycle emissions of fuels including further greenhouse gas (GHG) species.

The Sea Cargo Charter is one of three initiatives based on the same four Principles and developed with the Global Maritime Forum. Together with the Poseidon Principles and the Poseidon Principles for Marine Insurance, they share a common objective: fostering transparency on emissions reporting with the aim of contributing to reducing carbon emissions.

Transparency initiatives unite for the first time to organise event on emissions reporting

Back-to-back with the Global Maritime Forum’s Annual Summit in Athens on October 17, the Poseidon Principles for Financial Institutions, Poseidon Principles for Marine Insurance, and Sea Cargo Charter came together for the first time to co-host an event at the Piraeus Marine Club in Greece, “Transparent Emissions Reporting: Navigating Sustainable Shipping.”

These three initiatives, which originated in collaboration with the Global Maritime Forum, all share a common objective: fostering transparency on emissions reporting with the aim to contribute to reducing carbon emissions. They establish global frameworks for evaluating and disclosing the climate emissions of ship finance portfolios, hull and machinery insurance portfolios, and ship chartering activities, all with the overarching goal of advancing the decarbonisation of the shipping industry.

The event brought together more than 60 influential stakeholders representing various sectors within the maritime ecosystem, including charterers, financial institutions, marine insurers, shipowners, service providers, and brokers.

Throughout this event, attendees engaged in advanced discussions on the common challenges confronting shipping’s green transition. They explored the potential for collaborative efforts to address the need to decarbonise shipping and critical issues within the supply chain. The discussions focused on the crucial role of transparency and open dialogue in understanding emissions data linked to shipping activities, addressing increasing regulations and shifting consumer expectations to act around one of the most pressing challenges of our time: climate change. Furthermore, participants emphasised how transparency can function as a vital tool for managing risks, particularly considering the industry’s evolving landscape.

Legend for the above figure: emergence of the three transparency initiatives in its ecosystem

Common challenges and specificities

Signatories of these initiatives highlighted several benefits of their membership, including the focus on transparency, the ability to manage risks proactively, sharing experiences and methods with peers, responding to stakeholders’ expectations, enabling meaningful data-based discussions with clients, and avoiding duplication of efforts.

After kicking off this discussion, representatives from all three initiatives deliberated on ways to sustain their significance and explored how their initiatives could bolster industry-wide aspirations.

The Poseidon Principles for Financial Institutions reflected on the industry’s progress since 2015, pointing to the role of transparency and digitalisation in providing data for better understanding of shipping emissions and global regulations, such as the IMO’s revised ambition to reach net-zero greenhouse gas emissions in the shipping sector close to 2050. Recently, the Poseidon Principles announced their decision to revise their current trajectories accordingly in their 4th Annual Disclosure Report, which will be published on 14 December 2023. They also highlighted sectoral initiatives such as the Task Force on Climate-Related Financial Disclosures, emphasising the financial institution’s commitment to transparency and decarbonisation.

The Poseidon Principles for Marine Insurance acknowledged the longstanding perception of marine insurance as a traditional industry. Initiatives such as these principles have the potential to lead the way in promoting transparency, innovation and de-risking the transition. Transparency is already a significant factor in marine insurance, facilitating meaningful conversations and support with clients regarding their decarbonisation journey.

The Sea Cargo Charter discussed the challenges of achieving net-zero emissions by 2050, emphasising the value of employing a standardised methodology for emissions reporting to guide industry-wide business decisions. The Sea Cargo Charter plays a vital role in meeting the industry’s demand for accurate data and offering unparalleled insights through data collection. Moreover, the Charter highlighted the role of transparent data sharing in advancing a more sustainable future.

This event highlighted the shipping industry’s journey towards transparent emissions reporting and its role in achieving sustainable shipping practices. Attendees inquired about various aspects of emissions reporting, including how to explain and communicate data, standardisation, and collaboration with international organisations. The need for transparency in data and the recognition of the industry’s challenges were prominent themes in the discussion. While challenges still exist, the shared commitment to transparency and data sharing has the potential to drive the industry toward a greener and more transparent future.

The three initiatives warmly thank all participants who attended this event. We would also like to thank our partners for their involvement in this worldwide endeavour to advance emissions reporting for the shipping industry. This is an ongoing voyage that necessitates collective effort. We trust that our community will inspire their colleagues to join us in this mission and invite others to do the same.

History behind these initiatives

The Poseidon Principles were inaugurated in 2019 due to intensive workshops held following the Global Maritime Forum Annual Summit in Hong Kong in 2018. Since its inception, the principles have garnered the support of 34 signatories from 13 countries, collectively representing nearly two-thirds of global ship finance.

The Sea Cargo Charter was established in 2020 and has since gained the commitment of 36 signatories hailing from 13 countries. These signatories collectively account for more than 17% of the total bulk cargo transported by sea in the span of a year.

In 2021, the Poseidon Principles for Marine Insurance came into being with ten signatories and nine affiliate members representing nine countries.

These initiatives, despite their distinct focuses, all share a sense of urgency, prioritise full-value chain collaboration, and strive to enhance transparency. Additionally, they are all built upon a common foundation of four key principles centred around assessment, accountability, enforcement, and transparency.

For general inquiries, please contact: Poseidon Principles and Poseidon Principles for Marine Insurance: info@poseidonprinciples.org / Sea Cargo Charter: info@seacargocharter.org

For media inquiries, please contact: Molly P. Hannon, Senior Communications Manager. mph@globalmaritimeforum.org  +45 53 76 67 87

 

Sea Cargo Charter Report Outlines Emissions from Shipping Companies’ Activities

The Sea Cargo Charter, a global framework for assessing and disclosing the climate alignment of chartering activities, today released its annual report covering 2022, highlighting the disclosure of emissions data from shipping companies’ activities.

 

14 June 2023—The 33 Signatories, which disclose the climate alignment of their chartering activity for 2022, account for more than 17% of total bulk cargo transported by sea over the year. Their average reporting rate has increased since last year to 90%.

It is important to highlight, that it is not possible to compare the scores of individual Signatories to one another for several reasons: Signatories have different portfolios, different ship types and different numbers of voyages. Furthermore, the Signatories have different operational and trade profiles with particular trade characteristics that affect their annual activity alignment.

In this second edition of the Sea Cargo Charter Annual Disclosure Report, the average climate alignment of Signatory companies is at the same level as in 2021 but the variation of data has decreased significantly. This is due to several reasons, including changes carried out to the chemical and liquified gas tanker baselines, as well as trade patterns and better operational efficiency.

“While achieving full decarbonisation by 2050 may seem far off, the maritime industry is well aware of the importance of decisions taken now in order to achieve this goal. The data in the Sea Cargo Charter report shows Signatories’ dedication to measuring and reporting transparently their climate impact as an essential first step towards reducing emissions,” says Rasmus Bach Nielsen, Chair of the Sea Cargo Charter Association and Global Head of Fuel Decarbonisation at Trafigura

Calls for ambitious MEPC80
“We would like to add our voice to those calling for ambitious targets on decarbonisation to be adopted at the IMO meeting to adopt a revised Strategy for Reduction of Greenhouse Gas Emissions from ships,” Rasmus Bach Nielsen says.

Nielsen hopes and believes the International Maritime Organization (IMO) will agree on significantly more ambitious targets at the upcoming Marine Environment Protection Committee meeting (MEPC80) in July.

“Achieving these reduction targets is essential for the industry to play its role in addressing climate change, and it will require an appropriate policy framework that allows companies to take the commercial decisions needed to accelerate decarbonisation and it will also assist Sea Cargo Charter in establishing future enhanced baseline targets,” he says.

He highlights the importance of a regulatory framework.

“The key is that while it is fine to have big targets we also need a regulatory framework where it can be realistic to reach these,” he says.

At the association’s annual meeting in April, Signatories continued the ongoing discussion of how to make the reporting more robust and whether to raise the ambition level. However, many members were keen to wait for the outcome of the MEPC80 meeting, as the results will have big implications on the industry’s ability to deliver on the Paris Agreement temperature increase goal.

Complex scores
The simple average score of reporting Signatories in the Sea Cargo Charter report, i.e., all reported climate alignment scores calculated with equal weight, was 1.6% and the median was 2.7%. Without data on each Signatory’s total shipping activity, it was not possible to calculate a weighted average, which would be a more appropriate statistic to summarise the distribution of scores given that Signatories have different trades and levels of activity.

Scores ranged from -21.8% to 21.4%, and 60% of reporting Signatories had a score of +5% or less. These alignment scores are based on an average reporting rate of 90% from Signatories of their annual activity. A negative score implies alignment while a positive score denotes misalignment to the decarbonisation trajectory.

“Our Signatories recognise that their role in the industry affords them opportunities to promote responsible environmental stewardship and drive change throughout the maritime value chain. The data in the report is thus a basis for further developing cooperation with shipping business partners. The data will provide insights that enhance our joint strategic decision-making and help us address climate change,” says Eman Abdalla, Vice Chair of the Sea Cargo Charter Association and Global Operations Director at Cargill Ocean Transportation

Eman further elaborates:

”To make our voice louder, we are looking to open up our membership scope to not only charterers and cargo owners but also shipowners so that they can join us and make the Sea Cargo Charter a truly industry-wide initiative where we together unite and work towards one global transparent and standardized emission reporting system,” she says.

According to Abdalla it ought to be in the interest of all industry stakeholders to have common alignment and transparency on emissions.

Read the Sea Cargo Charter Annual Disclosure Report 2023.

For further information, contact Head of Communications, Global Maritime Forum, Rasmus Nord Jørgensen at rnj@globalmaritimeforum.org.

About the Sea Cargo Charter
The Sea Cargo Charter is a global framework for assessing and disclosing the climate alignment of chartering activities. It establishes a common, global baseline to quantitatively assess and disclose whether chartering activities are in line with climate goals set by the UN maritime agency, the International Maritime Organization (IMO). The IMO’s initial greenhouse gas strategy prescribes that international shipping must reduce its total annual emissions by at least 50% of 2008 levels by 2050, whilst pursuing efforts towards phasing them out as soon as possible in this century.

The Sea Cargo Charter elects new Chair and Vice Chair

Rasmus Bach Nielsen (Trafigura Maritime Logistics) was elected as Chair and Eman Abdalla (Cargill Ocean Transportation) was elected Vice Chair of the Sea Cargo Charter Association.

 

10 May 2023-At the 2023 Annual Meeting of the Sea Cargo Charter Association in Copenhagen, the 36 Signatories elected new Steering Committee members and discussed past and future activities. In total, 12 member companies were elected to the Steering Committee to coordinate the Association on behalf of its members.

The Sea Cargo Charter is a global framework for assessing and disclosing the climate alignment of chartering activities. Charterers and cargo owners play an important role in the industry’s path to zero emissions. Transparency and standardisation are important steps on that journey for both the cargo owners and ship owners because it enables them to have a data-based conversation on their carbon footprint.

“I am honoured to be elected as Chair of the Steering Committee, and excited to continue all the great work that is already underway. The mindset regarding climate alignment has changed faster than we could have imagined in the past few years, and I look forward to continuing the work on global standardised and transparent emission reporting which will assist everyone in pushing shipping’s green transition forward,” says Rasmus Bach Nielsen, Global Head, Fuel Decarbonisation, Trafigura Maritime Logistics and new Chair of the Sea Cargo Charter Association.

Each year, the association publishes its Annual Disclosure Report, which details the climate impact of the member companies. The next report will be published on June 14.

Rasmus Bach Nielsen is replacing Jan Dieleman as Chair, stepping up from Vice Chair. Claire Wright (Shell) was reelected as Treasurer of the Steering Committee.

The association has grown significantly since it was established in October 2020, but the ambition is to get many more new members, for example from the mining industry and from a wider geographical spread.

“We have accomplished so much with the Sea Cargo Charter in the past few years. Establishing a common, global baseline to assess and disclose chartering activities’ climate alignment is a critical step in the decarbonisation efforts of the industry as it provides insights for continuous improvements and interventions. I am confident in the newly elected Steering Committee and look forward to following future progress,” says Jan Dieleman, President, Cargill Ocean Transportation.

Eman Abdalla, Global Operations Director, Cargill Ocean Transportation was elected as new Vice Chair of the Association, and she looks forward to expanding the membership.

“The Sea Cargo Charter is a critical framework that brings transparency, standardisation, and alignment to the shipping industry. I am honoured to be elected as Vice-Chair and look forward to working tirelessly to expand our membership base across industries and geographies to achieve our goal of widespread adoption, making zero carbon shipping a reality,” she says.

The Sea Cargo Charter Association Steering Committee counts 14 member companies.

The Steering Committee now consists of:

Rasmus Bach Nielsen, Trafigura Maritime Logistics (Chair); Eman Abdalla, Cargill Ocean Transportation (Vice Chair); Claire Wright, Shell (Treasurer); Engebret Dahm, Torvald Klaveness; Hans Christian Jensen, ADM; Heidi Aakre, Equinor; Henrik Røjel, Norden; Jeff Wakker, Viterra; Jürgen Willemsen, Dow; Justine Clark, Shell; Marcio Valentim Moura, Bunge; Martin Viquesnel, Louis Dreyfus Company; Matt Turns, Chevron; Patrick Heise, ADM; Peter Lye, Anglo American; Raghav Gulati, Anglo American; Seb Landerretche, Louis Dreyfus Company; Sebastien Roche, TotalEnergies.

Global Maritime Forum act as the secretariat for the Sea Cargo Charter.

 

More information about the members of the Steering Committee is available here.

For further information, contact Head of Communications, Rasmus Nord Jørgensen at rnj@globalmaritimeforum.org.

 

About the Sea Cargo Charter

The Sea Cargo Charter is a global framework for assessing and disclosing the climate alignment of chartering activities. It establishes a common, global baseline to quantitatively assess and disclose whether chartering activities are in line with climate goals set by UN maritime agency, the International Maritime Organization (IMO). The IMO’s initial GHG strategy prescribes that international shipping must reduce its total annual greenhouse gas emissions by at least 50% of 2008 levels by 2050, whilst pursuing efforts towards phasing them out as soon as possible in this century.