INSETTING SOLUTIONS: SWITCHING TO SUSTAINABLE FUELS TO REDUCE CO₂ EMISSIONS
Simplifying Sustainable Logistics with GoGreen Plus
Offsetting (or indirectly compensating transport-related CO₂ emissions outside of the transport chain) is meaningful but will not enable to decarbonize the freight shipping industry entirely. Through the use of sustainable fuels or the renewal of fleets with more environment-friendly aircrafts and see vessels, insetting can help all the actors of the supply chain reach their climate goals.
The Potential and the Challenges of Sustainable Fuels
Sustainable fuels are an important element of DHL Global Forwarding’s decarbonization roadmap and a key lever for insetting: Biofuels and eFuels in particular show great decarbonization potential.
Biofuels are readily available and require little to no change in engine technology – and will therefore play a key role in next 10 years.
However, few locations currently allow for fuel replacement in sea vessels or at the airport. Moreover, it is difficult for shippers to engage beyond pilot projects and for carriers to scale up to an increased demand.
Using the One-Atmosphere Approach to Leverage Insetting
Increasing insetting can help to channel much needed funds to invest into a sustainable fuel production, infrastructure and usage. A one-atmosphere approach can help leverage insetting.
All container ships exhaust in the same atmosphere. Therefore, it does not matter for our climate where or in which container vessel biofuel is used instead of fossil fuel – as long as the reduction takes place somewhere in the industry.
As a consequence, two elements are needed to establish sustainable fuel insetting:
- An increase of the share of sustainable fuel in the network
- A clear accounting and verification process. This is where DHL takes the lead on behalf of their customers.
Switching to Sustainable Fuels with DHL Global Forwarding
By working with trusted partners, DHL can help customers to not only reduce emissions, but also to contribute to accelerating sustainable fuel production and global availability. Here is an example with Ocean Freight:
- DHL forecasts the carbon emissions which shall be reduced
- The corresponding amount of sustainable marine fuel is ‘procured’ and used on one or several container vessels.
- Carriers bunker the sustainable marine fuel, but only need to cover the cost of the conventional fuel. The price difference between conventional and sustainable marine fuel determine the cost for the sustainable fuel premium.
- Applying the one-atmosphere approach simplifies the fuel switch, since the sustainable marine fuel does not have to be on the same vessels as the container whose emissions are to be reduced
While conceptually this is a very straight forward exercise, each process step needs to be managed closely to ensure that the CO₂ reductions can be verified and claimed. This is exactly what DHL Global Forwarding is doing for its Customers with Book & Claim.
Book and Claim
With Book & Claim, customers can be assured that biofuels are being utilized through transparent accounting and constant monitoring of their supply and demand. CO₂ reduction and transition to sustainable fuels are verified: at the end of the process, our Customers receive a certificate (verified by an independent organization), stating and confirming the carbon reduction impact.
Book & Claim is part of our GoGreen Plus solution portfolio. Main-haul emissions are reduced with the help of sustainable fuels, and remaining remissions inland can be compensated optionally.
Since January this year, all our LCL shipments emissions are reduced with sustainable marine fuel – at no extra cost to the customer. This service in now also available to our FCL shipments (at a cost), and naturally DHL Global Forwarding is also piloting the same service for Air Freight customers.
Please get in touch with your key account manager if you would like to know more about GoGreen Plus.
