We believe climate action is urgent and needed now. We are committed to zero emission shipping by 2050 and
our goal is to have zero emission vessels entering the fleet in 2030.
This is aligned with the Race To Zero 2030 breakthrough goal of
5% zero emission fuel in international shipping by 2030.
We work with real-economy actors to enable them to take near-term action.
We will do this by leading at least two first mover programmes to create green corridors, which are zero emission routes between two or more ports. These will be implemented by the middle of the decade, the first one is the ‘Silk Alliance’, and will provide the assurance of zero emission tonnage. This means creating safety standards and building to a zero-emission propulsion ready framework from 2023. At the same time, we’re supporting our clients in achieving emissions reduction in the short-term through optimising assets and operations, and driving a more transparent sector.
Our credibility is underpinned by taking climate action on our GHG footprint. We’re committed to an ambitious science-based target that ensures our own decarbonisation journey is aligned to a 1.5°C world and we will bring forward our zero-emissions goal to at least 2040. We know our funding, research and professional services can help lead to a decarbonised shipping sector.
How we are adding value
We have established a Maritime Decarbonisation Hub that aims to accelerate the transition to safe and sustainable zero emission fuels through building partnerships to create evidence, insight and practical experience.
The Maritime Decarbonisation Hub
has been founded on the following tenets:
- Independent voice: The Hub is as an independent voice, providing evidence-based knowledge and insight
- Holistic approach: We look at the whole maritime supply chain, rather than focusing solely on the ships
- Non-profit mission: Our initiatives are backed by the LR Foundation, for the benefit of the industry and our society
- Evidence-based research: Conclusions from our decarbonisation research and analysis are supported by transparent evidence aligned with climate science
- Action-oriented: We go beyond providing insights and research to the industry, to the actual initiation and implementation of decarbonisation projects
First Mover Framework
We have created a First Mover Framework, providing a method for implementing zero-carbon fuel solutions in green corridors. It offers a roadmap for decarbonisation and fuel adoption and shows investment-readiness. Based on this, we have launched a consortium to deliver our first green corridor, starting with intra-Asia container trade.
The Silk Alliance
Named ‘The Silk Alliance, it brings together actors from across the full maritime value-chain including shipowners, shipyards, bunker logistical suppliers, engine manufacturers, ship managers and financial institutions. Led by LR, these members are working together to deliver a zero-emission vessel on the green corridor route.
The Castor Initiative
We also founded the Castor Initiative in 2020, alongside MISC Berhad, MAN Energy Solutions, Samsung Heavy Industries, YARA, MPA and Jurong Port with the plan to develop, design, build and commission the world’s first ammonia-fuelled tanker by 2025.
Since that time, this initiative has progressed from exploration to commitment, to building a zero-emission vessel.
We recognise that reskilling and upskilling the workforce is integral to transitioning the industry to a zero-emission value chain of new fuel production and distribution, and building the new infrastructure to support it. Through partnerships we want to ensure a just transition for the workforce – where jobs are safe and decent, and do not propagate existing inequalities or create new ones.
The LR Foundation will fund the delivery research that assesses the reskilling and upskilling needed to operate and handle zero-emission ships and fuels without compromising safety. It will also provide actionable recommendations to revise existing international legislation governing training and social standards for seafarers, by COP27.
For this reason, we are a funding partner of the Just Transition Maritime Taskforce. It comprises the International Maritime Organization (IMO), the International Chamber of Shipping (ICS), the International Labour Organisation (ILO), the International Transport Workers Federation (ITF) and the UN Global Compact (UNGC), and will lead efforts to ensure that the transition to a decarbonised industry is safe and inclusive.