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Nordic leads on shipping decarbonisation front, says International Transport Forum report

Report showcases pioneering efforts made by Nordic countries to reduce shipping environmental impact and encourage more cohesive global decarbonisation efforts.

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London-based maritime shipping information exchange The Baltic Exchange on Tuesday (24 November) said a newly published research from the International Transport Forum (ITF) concludes that Nordic countries are among those with the highest ambition and greatest number of maritime technology demonstrations in the world.

Consequently, the Forum’s report Lessons from the Nordic Region has showcased the pioneering efforts being made by Nordic countries to reduce the environmental impact of maritime shipping, aiming to encourage more cohesive global decarbonisation efforts.

The report, initiated by the Nordic Council of Ministers and funded by Nordic Energy Research, found that accelerated innovation is important in a sector dependent on long-lasting assets like ships and that policy is a “critical tool” to stimulate the deployment of maritime low-carbon technologies.

“In the Nordic countries, both government and the private sector provide strong leadership in environmental questions,” said Pierpaolo Cazzola, project lead for the report at the ITF.

“Government-sponsored research is thus often accompanied by industry partnerships and cluster initiatives that provide a fertile environment for innovation.

“Many of these schemes bring together multiple actors and ensure a full project cycle from research via the demonstration phase to market introduction and investment finance for customers willing to apply the new solution. 

“This last step has been important to ensure that prototypes find their way into real-life application. It is an approach that holds many lessons for shipping nations seeking to decarbonise their fleet as quickly as possible.”

The report also found that liquefied natural gas (LNG) and methanol (when produced using fossil fuels) do not deliver significantly lower greenhouse gas (GHG) emissions than conventional marine fuels.

Further, the report claims that current policies that focus on direct CO2 emissions are failing as they do not account for other GHG emissions such as methane or emissions from upstream fuel production, creating “inappropriate advantages” for fuels such as fossil LNG.

The report also argues that current policies that focus on direct CO2 emissions are failing as they do not account for other GHG emissions such as methane or emissions from upstream fuel production

The ITF has proposed six recommendations from the Nordic research:

  1. First, the global shipping industry needs to increase the energy efficiency of new and existing ships.
    • The research established that Norway, Denmark and other Nordic countries have proposed mandatory technical or design efficiency improvements for the existing fleet (labelled EEXI) and a mandatory operational goal-based measure with carbon intensity targets at the ship level. 
    • “Adoption of both proposals – or a proposal combining both measures – by the International Maritime Organisation (IMO) seems possible,” states the report. “It would help to achieve the IMO’s 2030 carbon intensity target to reduce shipping CO2 emissions by at least 40% from 2008 levels.
    • However, in an acknowledgement of the challenges, the ITF recognises that this would require both stringent engine power limitations in the EEXI-proposal, ambitious carbon intensity targets and sanctions if carbon intensity targets at ship level are not met.

2. The second recommendation calls for leveraging of public sector procurement to stimulate the electrification of short-distance shipping.

    • Here, the ITF praises Nordic countries as a “world leader” in the electrification of short sea shipping and provision of onshore power supply.
    • Specifically, the ITF proposes that electrification be expanded to harbour ships, tugboats and icebreakers by using the public sector’s buying power regarding maritime services.

3. A third recommendation stresses the need for regulations on lifecycle emissions of maritime fuels, calling on shipping stakeholders to support the adoption of a lifecycle (known as a well-to-wake) framework for assessing energy use and GHG emissions of shipping fuels.

    • “Promoting an IMO standard or approval procedure for lifecycle-based carbon emission factors, including in the framework of the IMO Energy Efficiency Design Index (EEDI) regulation, is a near-term priority,” said the ITF. “This is particularly important for LNG, which reduces tailpipe GHG emissions but can have significant upstream GHG emissions.”

4. Recommendation four suggests putting in place carbon pricing for shipping and policies that can reduce the carbon content of shipping fuels.

    • The ITF proposes that inspiration be drawn from the initiatives in place in Nordic countries for carbon taxes, environmentally differentiated port pricing and electricity tax exemptions for shore power connections.

 5. The fifth recommendation advises advancing the discussion on market-based mechanisms at the IMO, urging that Nordic countries support a review to map state-of-the-art carbon pricing (market-based mechanisms).

    • “It could focus on policy practices developed over the last decade and also include findings of the IMO expert group on market-based mechanisms of 2010. From this review, a concrete proposal could be developed, that could assess the effectiveness and feasibility of measures such as, for example, a carbon levy, an emissions trading scheme, a low-carbon fuel standard or a hybrid approach,” said the ITF.

 6. The final recommendation encourages the launch of pilot projects to gain experience with new fuels and accelerate the adoption of safety guidelines.

    • Here, the Nordic countries’ many pilot projects for new fuels make it a “proving ground for the low-carbon shipping fuels of tomorrow”, said the ITF. “Norway in particular has played an important role in the development of international codes on the use, transport and storage of low-flashpoint fuels.
    • Research and additional pilot projects on promising fuels such as ammonia, liquid hydrogen and advanced biofuels, in a range of shipping segments, are important to address technical challenges associated with the use of new marine fuels.”
    • The ITF added that in this context the capacity, experience and leadership of Nordic stakeholders are a “precious resource”.

Photo credit: K8 on Unsplash
Published: 30 November, 2020

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Methanol

China: Chimbusco completes bunkering op with domestically produced green methanol

Chimbusco delivered 1,000 mt of domestically produced green methanol bunker fuel to “COSCO Shipping Yangpu”, China’s first 16,000 TEU methanol dual-fuel container ship, from 11 to 12 July.

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China: Chimbusco completes bunkering op with domestically produced green methanol

China Marine Bunker (PetroChina) Co Ltd (Chimbusco) on Monday (14 July) said it successfully completed a green methanol bunkering operation for COSCO Shipping’s first methanol-dual-fuel container vessel at Shengdong Terminal in Yangshan Port. 

Chimbusco delivered 1,000 metric tonnes (mt) of domestically produced green methanol fuel to COSCO Shipping Yangpu from 11 to 12 July. 

COSCO Shipping Yangpu is the first methanol-dual-fuel container vessel invested and built by COSCO Shipping Group. The company previously deemed the vessel China’s first 16,000 TEU methanol dual-fuel container ship. 

 With an overall length of 366 meters and a beam of 51 metres, it has a maximum container capacity of 16,136 TEUs. 

The vessel employs an advanced dual-fuel propulsion system that enables flexible switching between methanol and traditional fuels. When using green methanol as fuel, it significantly reduces carbon emissions and pollutant discharges during operations, injecting strong impetus into the green transformation of China’s shipping industry.

“This green methanol bunkering operation, jointly completed by COSCO Shipping Lines, CHIMBUSCO, and SIPG Energy Shanghai, represents another proactive exploration by CHIMBUSCO in the field of green methanol bunkering at Shanghai Port,” Chimbusco said.

“It also marks another significant step by COSCO Shipping Group in advancing the green and low-carbon transformation of the shipping industry and integrating the entire methanol supply chain.”

“As a leading domestic marine fuel supplier, CHIMBUSCO actively responded to shipowners’ demand for green methanol bunkering and worked closely with COSCO Shipping Lines, SIPG Energy Shanghai and other entities to develop a detailed supply plan and emergency response plan in advance, in accordance with relevant bunkering standards for marine methanol fuel.”

Manifold Times previously reported Chimbusco completing a methanol bunkering operation of the same vessel in Shanghai on 11 May. 

COSCO SHIPPING YANGPU was supplied approximately 900 mt of methanol marine fuel by Chimbusco at Pier 1 of COSCO Shipping Heavy Industry. 

Related: Chimbusco completes bunkering op of China’s first 16,000K TEU methanol DF boxship
Related: COSCO Shipping names China’s first 16,000 TEU methanol dual-fuel container ship

 

Photo credit: Chimbusco Dalian
Published: 17 July 2025

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Methanol

Shanghai Electric starts producing first batch green methanol bunker fuel with new plant

New batch of green methanol will soon arrive at Shanghai Port and be delivered to CMA CGM to enter the international market as a marine fuel.

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Shanghai Electric starts producing first batch green methanol bunker fuel with new plant

Shanghai Electric on Thursday (17 July) announced its Jilin Taonan Green Methanol Project, China’s first facility to fully integrate wind-to-hydrogen with biomass gasification, is now producing its first batch of ISCC-EU certified green methanol.

This batch of green methanol will soon arrive at Shanghai Port and be delivered to CMA CGM to enter the international market as a marine fuel.

The company said the milestone event marked a major national breakthrough in the field of green hydrogen-based fuels. 

Shanghai Electric will use this project as a catalyst to build a world-leading, full-industry-chain platform for green fuels, to accelerate the development of an integrated industrial ecosystem encompassing green energy, green hydrogen, green methanol and green applications.

The company will continuously improve new energy power generation, water electrolysis for hydrogen production, biomass gasification, carbon capture, green ammonia, and to promote the large-scale application of green fuels in shipping, aviation, chemical industry and other fields.

At a ceremony, Cai Dong, member of the Standing Committee of the Jilin Provincial Party Committee and Executive Vice Governor, launched the start of production of the fuel. 

As the first large-scale commercial green methanol project in China, the Taonan project has an annual production capacity of 50,000 metric tonnes in the first phase.

“It is the first green methanol project in China to pass the EU ISCC full-process certification and to market to the international market,” the company said. 

 

Photo credit: Shanghai Electric
Published: 17 July 2025

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Business

Singapore-based Seatrium secures USD 400 mil sustainability-linked revolving credit facility

Credit facility will significantly contribute to Seatrium’s long-term goals of achieving its ESG targets, further bolstering its commitment to sustainable development in the offshore, marine and energy sector.

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Singapore-headquartered marine engineering firm Seatrium on Tuesday (15 July) said its wholly-owned subsidiary Seatrium Financial Services Pte. Ltd. (SFS) has successfully secured a USD 400 million sustainability-linked revolving credit facility with United Overseas Bank (UOB).

This credit facility, anchored in sustainability-linked principles, aligns with Seatrium’s Sustainable Finance Framework and includes revolving credit features which will strongly enhance the Group’s liquidity and financial flexibility. It will significantly contribute to Seatrium’s long-term goals of achieving its Environmental, Social, and Governance (ESG) targets, further bolstering its commitment to sustainable development in the offshore, marine and energy sector.

Dr Stephen Lu, Seatrium’s Chief Financial Officer, said, “Our continued partnership with UOB marks an important milestone in advancing our financial agility and deepening our commitment to environmental stewardship. By linking our financing framework to clearly defined sustainability targets, we are not only reinforcing accountability but also embedding climate-conscious principles into our capital strategy. This alignment will actively support our decarbonisation goals and longterm value creation.”

Ms Cindy Kong, Managing Director of Group Corporate Banking at UOB, said: “As the global energy transformation accelerates, sustainability-linked financing is playing a crucial role in driving the shift toward decarbonisation. We are proud to partner Seatrium in championing forward-looking initiatives within the global renewable energy segment. Together, we aim to foster innovation while paving the way for responsible and sustainable business growth globally.”

Since 2023, Seatrium has successfully secured over SGD 3 billion in sustainability-linked loans and green financing, further establishing itself as a global provider of sustainable engineering solutions for the offshore, marine, and energy sectors. 

“The Group is steadfast in its commitment to fulfilling its Sustainability Vision 2030, which is centred on empowering clients to minimise their carbon footprints through energy-efficient and environmentally sustainable vessels and offshore platforms.”

 

Photo credit: Scott Graham
Published: 17 July 2025

 

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