Amazon, IKEA Push for Near-Zero Emissions in Ocean Freight

Amazon, IKEA, and 36 other companies are set to launch a major initiative aimed at decarbonizing the ocean freight industry. Through the Zero Emissions Maritime Buyers Alliance (ZEMBA), the group plans to invite bids in January for cargo transport contracts on ships powered by near-zero emissions e-fuels such as e-methanol.

The alliance, administered by the Aspen Institute, intends to accelerate the maritime industry's transition to net-zero greenhouse gas (GHG) emissions by 2050. Ocean shipping currently accounts for over 80% of global trade and contributes approximately 3% of global GHG emissions. The contracts, spanning three to five years, are scheduled to begin in 2027 and cover an estimated 1.4 million 20ft containers transported from Shanghai to Los Angeles. The initiative is projected to reduce approximately 470,000t of GHG emissions.

Participating carriers such as Maersk, Evergreen, and Ocean Network Express have already ordered ships capable of operating on e-methanol and are working to secure fuel supplies. While alliance members anticipate paying a premium for e-fuel transport, Ingrid Irigoyen, CEO, ZEMBA, noted that market development and global regulations could help lower prices.

The International Maritime Organization (IMO) is expected to finalize regulations in April, including GHG pricing mechanisms that would incentivize zero-emissions fuel use and penalize carbon dioxide emissions. These measures could provide further certainty for companies investing in greener shipping solutions.