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In a bold move to address the need for reducing carbon emissions in the shipping industry, the International Maritime Organization (IMO) introduced groundbreaking regulations concerning energy efficiency and carbon intensity for all ships. These measures require ships to calculate their attained Energy Efficiency Existing Ship Index (EEXI) to determine energy efficiency and to initiate data collection to report their annual operational carbon intensity indicator (CII) and CII rating.
The EEXI is a score given to ships based on their energy efficiency. Ships attained EEXI will be compared to a required EEXI based on an applicable reduction factor expressed as a percentage relative to the Energy Efficiency Design Index (EEDI) baseline. Each ship's calculated attained EEXI value must be below the required EEXI to meet the minimum energy efficiency standard.
The CII is set to rank and monitor the carbon efficiency of each vessel concerning the cargo carried, and the distance traveled. The actual annual operational CII achieved must be documented and verified against the required annual operational CII, allowing the operational carbon intensity rating to be determined. The rating ranges from A to E (where A is the best), and the threshold requirements will become stricter year over year.
Implementing the Energy Efficiency Existing Ship Index (EEXI) and Carbon Intensity Indicator (CII) measures marks a significant step towards reducing carbon emissions in the shipping industry. While they offer environmental benefits, they also present challenges, including compliance costs and potential disruptions to shipping schedules. Collaboration among stakeholders, technological advancements, and regulatory support are crucial to navigating these challenges.
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As part of ongoing efforts to combat climate change, the European Union (EU) has extended the Emissions Trading System (ETS) to include CO2 emissions from all large ships entering EU ports. Starting in January 2024, this move will hold shipping companies accountable for their carbon footprint, fostering energy efficiency and incentivizing low-carbon solutions within the maritime logistics industry.
In May 2023, the EU officially adopted amendments to the ETS Directive and the Regulation on the Monitoring, Reporting, and Verification (MRV) for maritime transport. These amendments will integrate maritime emissions into the ETS, encompassing 50% of emissions from voyages starting or ending outside the EU and 100% of emissions between two EU ports or when ships are within EU ports. This step will apply to all large ships of 5,000 gross tonnage and above, irrespective of their flag.
To facilitate a smooth transition, shipping companies will gradually be required to surrender emission allowances for a portion of their reported emissions:
Including maritime emissions in the EU Emissions Trading System marks a significant shift for the maritime logistics industry. While compliance with the regulation will present challenges, it also creates opportunities for the sector to embrace sustainability, foster innovation, and collaborate effectively to contribute to a greener future.
JAS Indonesia, in partnership with the Bruni Foundation, marked International Literacy Day (ILD) by organizing the "Book Donations for World Literacy Day" event on September 8, 2023. Led by JAS Sustainability Ambassador Sigit Yulianto, this event exemplified the team's dedication to championing literacy as a fundamental human right and their commitment to positively impacting the community.
Held at a local school, the ILD event showcased the incredible potential of collective community action. Its success was driven by a joint effort: prior to the event, the JAS office initiated a book donation campaign among its employees, and a group of JAS Indonesia colleagues volunteered to represent JAS at the local school. However, the event went beyond mere book donations; the team also shared food, drinks, and moments of joy, fostering an atmosphere of unity that enriched the day.
The teams' actions serve as a reminder that when individuals and organizations unite for a common purpose, they can create positive change. Literacy is not merely about reading; it is a pathway to a brighter future for all.
The Sustainability Ambassadors at JAS play a key role in spearheading and executing sustainability initiatives. They are driven by a passion for creating a more sustainable organization and work closely with the Worldwide sustainability team and key stakeholders. Their expertise and influence serve as catalysts for transformation, inspiring and guiding others to contribute to a greener and more inclusive future.
International Literacy Day has been observed globally on September 8 since 1967, emphasizing the significance of literacy as a basic human right. It also serves as a call to advance progress towards achieving Sustainable Development Goal 4 (SDG4) on education and lifelong learning.
As the European Union (EU) heightens its climate ambitions, there are increasing regulations related to "carbon leakage." This phenomenon occurs when EU-based companies shift carbon-intensive production to countries with less strict climate policies, potentially increasing emissions. To address this, the EU has introduced the Carbon Border Adjustment Mechanism (CBAM), an environmental regulation designed to establish a fair price for carbon emissions associated with the production of carbon-intensive goods entering the EU. Its purpose extends to encouraging cleaner industrial practices in non-EU countries.
Goods Covered in the Initial Phase:
The CBAM's scope encompasses products like cement, iron and steel, aluminum, fertilizers, electricity, and hydrogen in the transitional phase. Moreover, there are plans to evaluate the possibility of expanding the range of covered products by 2030, potentially including additional sectors.
Impacts:
Timeline:
As the CBAM unfolds between 2023 and 2035, it will have significant implications for industries, global competitiveness, and the fight against climate change. Here are some key dates to keep in mind:
Benefits:
How Can JAS Support You?
*The importer is at all times responsible for providing all documentation related to customs clearance, including correct shipment/tariff and emission-related data.
In a world facing pressing environmental challenges, the need for carbon reduction has become a priority for industries worldwide. The Transport and Logistics sector plays a key role in global trade and commerce, and the Science Based Targets Initiative (SBTi) serves as a framework for empowering companies within this sector to establish ambitious carbon emission reduction targets.
Let us explore the significance of SBTi and how it is shaping the future of the Transport and Logistics industry.
What is SBTi?
The Science Based Targets Initiative (SBTi) is a collaborative initiative driven by several prominent organizations, including CDP, World Resources Institute (WRI), the United Nations Global Compact (UNGC), and the World Wide Fund for Nature (WWF). Its overarching mission is to support companies in aligning their emissions reduction targets with scientific evidence to hold global warming at 1.5°C above pre-industrial levels. SBTi provides a comprehensive framework for the setting and validating such targets for companies across various industries.
The Transport and Logistics Industry's Role
The Transport and Logistics industry significantly contributes to global emissions due to the substantial fuel consumption of ships, trucks, airplanes, and other vehicles within the supply chain. As such, this plays a critical role in mitigating climate change, and companies are increasingly recognizing their environmental responsibilities and have started developing carbon reduction targets.
These carbon targets can cover emissions from various scopes, including direct emissions (Scope 1), energy consumption (Scope 2), and indirect emissions from the upstream and downstream supply chain (Scope 3).
Commitment to Net-Zero by 2050
As the Transport and Logistics industry continues to transform, JAS Worldwide has proactively embraced sustainability and carbon reduction. We are fully committed to establishing a science-based target in alignment with the Science Based Targets initiative (SBTi) aimed at achieving Net Zero emissions by the year 2050.
Through our commitment to SBTi, JAS is setting clear and measurable targets and taking tangible steps towards combatting climate change.
Recognizing our industry's role in advancing and strengthening the global economy and understanding that collective action yields a greater positive impact, we invite our business partners to join us in making strides toward a more sustainable future.
Committing to becoming net zero by 2050 -or earlier- is a step in the right direction. By leveraging the SBTi framework, our efforts contribute to a healthier planet and inspire positive change while creating value for stakeholders.
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