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MSC Teams Up with GCMD to Accelerate Industry Efforts to Decarbonize

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MSC Teams Up with GCMD to Accelerate Industry Efforts to Decarbonize

03/16/2023

MSC and the Global Centre for Maritime Decarbonisation (GCMD) have announced the signing of a five-year Impact Partnership agreement.

This agreement sees MSC, the world’s largest shipping line combine forces and industry expertise with GCMD. GCMD, strategically located in Singapore, the world’s largest bunkering hub and second largest container port, aims to help the industry eliminate GHG emissions by shaping standards for future fuels, financing first-of-a-kind projects, and piloting low-carbon solutions in an end-to-end manner under real-world operations conditions.

MSC has 730 vessels and the industry’s largest newbuilding orderbook of energy-efficient container ships. The family-owned business has been working on energy efficiency for many years and has been an early adopter of responsibly-sourced blended biofuels as a transitional fuel. MSC has advocated for the availability of supply of a range of alternative fuels and has set a clear goal to achieve net decarbonization by 2050.

By joining forces with GCMD, MSC is strengthening its commitment towards a collaborative approach to decarbonization. As an Impact Partner, MSC will provide cash contribution towards GCMD’s pooled resources for pilots and trials. MSC will also make in-kind contributions through its participation in projects, including access to vessels, operational equipment, and other assets, as well as vessel operating data and evaluation reports so their learnings can help inform GCMD’s future trials.

Decarbonizing shipping is the biggest challenge facing the maritime sector and one which can only be achieved by commitment, concrete action and investment by shipping companies, their customers, ports, energy suppliers and public sector actors.

Bud Darr, Executive Vice President Maritime Policy & Government Affairs MSC Group, said: “We are committed to helping to tackle climate change and in GCMD we believe we have found an excellent partner to help drive the green transition in our sector. We look forward to exchanging ideas, information and access to our substantial expertise and assets, to help accelerate progress towards the net zero future we all aspire to.”

On welcoming MSC as GCMD’s Impact Partner, Professor Lynn Loo, CEO of the Global Centre for Maritime Decarbonisation, said: “Despite current economic uncertainties, decarbonising shipping will need liners – who are closest to customers willing to pay a green premium – to make hard commitments for the industry to progress towards IMO’s 2030 and 2050 goals. With MSC coming onboard as our newest Impact Partner, GCMD is now in a stronger position to drive decarbonisation solutions across the industry.”

The announcement of the MSC-GCMD partnership in another example of how MSC has advocated on the importance of industry collaboration and knowledge-sharing to meet the industry’s decarbonization targets.

The Global Centre for Maritime Decarbonisation (GCMD) was set up on 1 August 2021 as a non-profit organisation. GCMD’s strategic partners include the Maritime and Port Authority of Singapore (MPA), BHP, BW Group, Eastern Pacific Shipping, Foundation Det Norske Veritas, Ocean Network Express, Sembcorp Marine, bp and Hapag Lloyd. Beyond the strategic partners, GCMD has brought onboard 13 impact, coalition and knowledge partners that engage at the centre level, in addition to numerous other partners that engage at the projects level.