Shipping giant CMA CGM has announced that it is creating the ‘Special Fund for Energies’ initiative backed by a US$1.5 billion budget to accelerate the company’s transition to achieve net zero across its supply chain by 2050.
The money from the fund will go to the development of new fuels with a lower carbon profile than traditional shipping fuels. CMA CGM will also be funding low emission mobility solutions across its entire business, including maritime; overland; air freight; port; and other logistics services.
The Special Fund for Energies will invest in new projects to secure the supply of renewable energies and explore new prototypes to meet decarbonisation targets.
The company has already begun to respond to human-caused climate change by using liquefied natural gas (LNG) as its transitional maritime fuel.
The Special Fund for Energies initiative will drive forward the emergence of industrial-scale production facilities for biofuels, biomethane, e-methane, carbon-free methanol, and other alternative fuels.
A concern for the group will be to ensure that its sustainable initiatives are not causing harm to the environment, as is a concern from sustainability company Transport & Environment, which conducted a study showing that LNG-powered vessels can leak ‘significant’ amounts of unburned methane into the atmosphere through combustion, according to Reuters.
