Green Virgin To Rock The Low Carbon Boat

Posted on 16. Mar, 2010 by Ross in Transport, Warehousing, Distribution & Logistics

The rise of the outsourcing of manufacturing jobs across the world saw an explosion in world shipping trade, with 85% of worldwide cargo travelling by ship, and so it’s no surprise that shipping is a major contributor to climate change.

Always one to spot a keen business opportunity - even if it’s to the benefit of someone else - entrepreneur Richard Branson has directed his new NGO, called the Carbon War Room, to add shipping to its list of battlegrounds. The Carbon War Room attempts to harness the power of entrepreneurs to identify and overcome barriers preventing the scale-up of climate change solutions.

According to the Carbon War Room, global shipping emissions are equivalent to the sixth most polluting country in the world, exceeding the emissions of Germany, Canada or the UK:

Annual CO₂ emissions currently exceed one million tons and are projected to grow to 18% of all manmade CO₂ emissions by 2050. Yet existing technology presents an opportunity for up to 75% gains in efficiency, with required investments repaid in just a few years.

The future for international shipping is generally considered to be characterised by strong growth, with increasing trade as the world comes back out of the economic slowdown coupling with the long-term global trend of economic growth. However, carbon reduction legislations could either escalate or dampen that growth. If carbon emissions can continue to be outsourced overseas without paying a carbon penalty, then market forces will continue to drive manufacturing jobs to restriction-free polluting countries. If countries become accountable for the footprints of their imports, then some manufacturing is likely to return to the consumer countries.

There is already a strengthening business case for such manufacturing repatriation. Businesses can respond to altering demand patterns more rapidly if goods are sourced locally due to shorter lead times, leading to better customer satisfaction. Additionally, local manufacturing in Europe generally cuts the carbon cost of shipping as well as the footprint of its manufacture, aiding companies deliver on their corporate social responsibility commitments as well as aiding resource sustainability. For example, Somar International Ltd recently redesigned their energy-efficient Eluma lighting system to be made more easily and locally both in the UK and by its worldwide distributor network, reducing the products shipped weight from the Far East by 81%.

Jigar Shah, the CEO of the Carbon War Room, sees his NGO’s role as vital to the fight against climate change:

We believe that climate change is the greatest challenge facing humankind, and we need a war room-like effort to combat it. We’re working on technologies that currently save people money: it’s far more straightforward and easier than trying to get governments to agree to binding targets in Copenhagen.

In shipping, there’s been an information gap. Companies that hired shipping services had no idea which were efficient and which were not.

Transparency is one way to stimulate change: customers need to know which ships are most efficient. Other simple ideas, like slowing ships down a little and adopting the equivalent of a 55 mph limit on the open seas, also are likely to play their part.

Carbon War Room researchers have also identified more than 40 energy-saving technologies that they are sharing with the industry. Among them: low-friction paint that allows ships to glide through the water, more aerodynamic propeller designs, and kites. German market leader SkySails says a ship’s fuel costs can be cut by 10-35% by using good old-fashioned wind power with a 21st century twist; its modern kite sails have been deployed by fishing trawlers as well as cargo ships.

Image by Tidewater Muse @ Flickr