Zespri and shipping partner ANL/CMA CGM have launched a feasibility study into a possible low-emissions shipping corridor between Tauranga and Zeebrugge in Belgium, via the Panama Canal.
Zespri executive officer for sustainability Rachel Depree said low-emissions shipping is a critical part of carbon reduction for exporters.
A low-emissions shipping corridor is defined as “a route between two or more ports where zero-emission shipping solutions are demonstrated and reported”.
“Collectively we are already facing rising costs as carbon is priced into the economy and our markets and customers are starting to demand targets and plans to lower emissions over time,” Depree said.
“Shipping plays a critical part in New Zealand’s export-driven economy, carrying 99% of the country’s trade by volume and around 80% by value.”
Depree said while kiwifruit is a low-carbon product, shipping emissions make up a larger portion of the product’s overall carbon footprint at 43%.
“Zespri can’t directly reduce shipping emissions ourselves so we’re working with our shipping and distribution partners to improve efficiency and find opportunities to pilot low-emissions fuels solutions as we work towards our ambition of being carbon positive by 2035.
“This includes continuing to advocate for new port infrastructure and supporting the introduction of more low-emissions shipping vessels, fuels and technology”.
A report on the feasibility of such a corridor by EY for the feasibility study showed New Zealand trails other countries in climate and transport policy and investment for low-emissions shipping.
The report says European ports made large investments to accept alternative-fuel ships, which are larger than conventional vessels, with some already running on 100% renewable energy.
Collaboration with other New Zealand exporters is critical to show demand, reduce cost and speed up investment.
Governments have an important part to play, with new policies and regulations needed to transition fuels and infrastructure.
The outlook for alternative fuels is complex, with no clear preferred low-emissions fuel, which means an adaptive and multi-fuel approach is needed.
Emissions intensity of alternative fuels is dependent on how these are manufactured.
Biofuel can provide a useful lower-emissions bridge as it can be “dropped in” to conventional vessels often with little or no modifications.
Alternative fuels are expected to price-match fossil fuels by 2040 onwards, due to reducing renewable electricity cost, the removal of subsidies on fossil fuel and carbon taxes.
First movers are needed to understand commercial production and economies of scale, the report says.
