One year after the signing of the Memorandum of Understanding (MoU) to establish a green and digital shipping corridor (GDSC), the Maritime and Port Authority of Singapore (MPA), Port of Los Angeles and Port of Long Beach have completed a comprehensive baselining study.

It forecasts more green jobs, health improvements for local communities and economic benefits for participating countries, emphasising the future demand for zero and near-zero emission fuels and the benefits of decarbonising the shipping routes between the nations.

The study, commissioned by C40 and the ports, and conducted by the American Bureau of Shipping, analysed maritime trade flows between Singapore, Los Angeles and Long Beach, and provided a baseline of activities and energy demand requirements for vessels operating on the corridor through to 2050. The conclusion of the study follows the successful unveiling of the corridor’s Partnership Strategy at the 28th United Nations Climate Change Conference (COP28/CMP18/CMA5) in December 2023, which outlined the corridor’s goals, partnership structure and governance mechanism. The study estimates the quantity of near-zero and zero-emission fuels required for this traffic by modelling the adoption of zero and near-zero carbon alternative fuels by vessels operating on the corridor through to 2050, considering various parameters such as fuel production costs and fuel availability, and in view of the targets in the 2023 IMO Strategy on Reduction of Greenhouse Gas Emissions from Ships.

On a practical level, the study highlights the potential socio-economic impact of transitioning to zero and near-zero emission fuels and leveraging on digital solutions. Based on the study’s estimates, the corridor at full implementation could create over 700 new job opportunities in zero and near-zero emission fuel production and improve local air quality. These estimates support findings by C40 and other organisations that activities undertaken through green shipping corridors can catalyse wider decarbonisation across the maritime industry and unlock health benefits for local communities and green economy opportunities for participating countries.

All three ports will participate in the Accelerating Digitalisation and Decarbonisation Conference organised by MPA as part of SMW (Singapore Maritime Week) 2024 and in a moderated discussion convened by C40 on the sidelines of SMW 2024 entitled ‘Navigating Collaboration: Governance of Green Shipping Corridor Partnerships’, where C40 will unveil its new report and share insights into best practices for GDSC effective governance.

Mr Teo Eng Dih, Chief Executive of MPA, said: “Shipping is a new pillar in the multifaceted partnership with the US. The GDSC with the Ports of Los Angeles and Long Beach highlights the importance of working with industry, researchers, government and society through innovation and capacity building. With traffic along the GDSC accounting for 7% of the world’s container trade, the initiatives by GDSC partners and stakeholders will help generate growth and new opportunities for maritime professionals.”

Port of Los Angeles Executive Director Gene Seroka, said: “This study provides a sense of scale and scope to inform our implementation of the green and digital shipping corridor. Achieving the reductions of greenhouse gas emissions required will take coordination and commitment from public and private stakeholders across the maritime and goods movement industries. We’re proud to be collaborating with industry partners to make this corridor a reality.”

“The Port of Long Beach and its partners have been very successful reducing emissions from cargo-handling equipment, trucks and other mobile sources moving cargo in our harbour,” said Port of Long Beach CEO Mario Cordero. “One of the most important parts of this partnership is it allows us to better understand and target a source of emissions that is hard for us to control as a local seaport authority – shipborne emissions. This work, vital to our net zero-emission quest, will result in economic and health benefits all along the trans-Pacific trade corridor.”

C40 Executive Director, Mark Watts said: “Accelerating efforts to decarbonise the shipping sector is urgent if we are to limit global heating to 1.5°C. C40 is proud to support this first-mover initiative which has the potential not only to support the development and uptake of low- and zero-carbon fuels and vessels, but also create good green jobs and health benefits for local communities by doing so.”

Download the full press release to learn more.

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