Australian-first maritime emissions reduction insetting for CBH
Australia’s largest co-operative and exporter of grain is reducing its maritime supply chain emissions as part of an Australian-first biofuels insetting pilot project in partnership with two global shipping giants.
CBH Group has collaborated with Norden and Oldendorff, shipping companies that are using waste-based biofuel voyages, by using book and claim solutions to transport Western Australian (WA) grain to the European Union (EU).
The biofuel-powered voyages achieved significant emission reductions compared to traditional fossil fuels, at no additional cost to WA growers, providing a practical response to new EU regulations impacting all ships over 5,000 gross tonnages calling at European ports.
Part of the EU's 'Fit for 55' climate legislation package, the regulations comprise a series of targets aimed at reducing carbon dioxide (CO2) emissions generated by marine transport.
Shipping companies that don’t refuel (or “bunker”) with renewable fuel are subject to penalties, and many customers are choosing to incur these penalties instead of asking shipping companies to use biofuels.
CBH Head of Shipping, Pia Van Wyngaard, said the co-operative has worked closely with shipping partners to leverage their biofuels expertise to lower CBH’s maritime supply chain emissions.
“We’re proud to be involved with projects that reduce our environmental impact while maintaining operational efficiencies and maximizing value for WA growers,” Van Wyngaard said. "Customers, governments and communities are expecting stronger sustainability efforts, and we are working to ensure WA growers remain competitive and can readily meet our customers' needs. These initiatives allow us to lower our carbon footprint for access to key markets such as Europe, and support CBH’s broader sustainability plan. So far, eight voyages transporting WA grain to Europe have used the shipping insetting method.”
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