Charting a Sustainable Course: CMA CGM's Pioneering Role in Shipping's Green Evolution

The green transition of shipping has gained momentum, not least with the introduction of the EU Emissions Trading System (ETS), a tool for regulating greenhouse gas emissions. But who will ultimately have to pay the cost and how are shipping companies adapting to meet these new requirements?

At the forefront of this revolution is CMA CGM, with an ambitious strategy that includes fossil-free fuels, significant investments and strategic partnerships. APM Terminals Gothenburg spoke with Linus Ljungmark, Area MD Scandinavia at CMA CGM, to delve deeper into the topic.

The green transition for shipping has accelerated. What is CMA CGM doing to assist this development?
The transport sector accounts for 24% of global greenhouse gas emissions, with shipping accounting for 3%. As a global player in transport and logistics, CMA CGM is taking its responsibility seriously and is actively striving to reduce carbon emissions in the industry.

Our goal is to reach zero emissions by 2050, and to succeed we are focusing on two main areas. Firstly, we are working to increase energy efficiency by modernising our assets and optimising both our offshore and onshore operations. Secondly, we are integrating fossil-free fuels into our energy mix. In 2023, CMA CGM managed to reduce its carbon dioxide emissions by one million tonnes.

How many biofuel vessels do you have and how many new vessels are on order?
As early as 2017, CMA CGM ordered container ships designed to operate on LNG, thus becoming pioneers in the field. Today, 36 LNG vessels flying the CMA CGM flag operate on the world’s seas and oceans, and by 2028 the fleet will be expanded to 119 vessels operating on LNG and methanol.

Which ship fuels do you see as being relevant and why?
CMA CGM is focusing on increasing the use and production of low-carbon fuels that are compatible with our new LNG and methanol vessels, where biogas and green methanol are highly relevant. At the same time, we are continuing to explore other alternative energy sources, especially hydrogen, ammonia and sails.

CMA CGM and Maersk have partnered to drive the transition, please tell us more!
CMA CGM and Maersk share the same ambitious zero emission targets and are investing heavily to reach them. Our companies have therefore decided to collaborate with the aim of reducing carbon dioxide emissions in the sector, in particular by developing future ship fuels.

The collaboration consists of two main components. Firstly, we strive to develop standards for alternative sustainable fuels, measure the fuel’s life cycle from production to emissions and help establish a framework for the mass production of green methane and green methanol.

The second part of the collaboration focuses on establishing standards for operating green methanol vessels when it comes to safety and bunkering, as well as speeding up port readiness for bunkering and delivery of bio- and e-methanol at key ports around the world.

Since 1 January 2024, shipping has been covered by the EU’s Emissions Trading System (ETS). How does this affect you and your customers?
As CMA CGM regularly operates in European waters, we now have to report our emissions annually and purchase emission rights based on the amount of greenhouse gases emitted by our vessels. An emission allowance corresponds to one tonne of carbon dioxide under the ETS. This new regulation also sets a fixed limit for the total amount of greenhouse gases that may be emitted per year and per company within the EU area, and the permitted amount will be gradually reduced each year.

Carbon pricing is crucial for reducing the carbon footprint of shipping and the entire supply chain, which ultimately supports our customers’ own climate goals. In order to increase cost transparency, CMA CGM is informing its customers that additional costs from the EU ETS will be reflected in an addendum on all containers loaded in any of CMA CGM’s services affected by the Directive.