Amazon among companies promising zero-carbon shipping fuel use by 2040
Commercial users of container shipping are committing to using zero-carbon fuels by 2040, in a new scheme aiming to speed up decarbonization. The initiative, organized by non-profit Aspen Institute has nine companies on board so far, including big names such as Amazon, IKEA, Unilever, and Michelin.
The shipping sector is under pressure to become more environmentally friendly, as global shipping makes up almost 3% of the world’s CO2 emissions. The United Nations is calling upon the industry to reduce greenhouse gases by 50% from 2008 levels by 2050. As around 90% of world trade is transported by sea, it is hoped that this initiative brings down emissions significantly.
Elisabeth Munck af Rosenschöld, sustainability manager, supply chain operations at Inter IKEA Group told reporters that “the voice of cargo owners is important since we are one of the stakeholders to enable the transformation in the industry.” She also highlighted that working with others is “crucial” at this time to achieve the environmental goals.
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Biden admin warns supply chain strains are here to stay
The U.S. transportation secretary, Pete Buttigieg, has warned that the country’s supply chain disruption is likely to continue into 2022 and will potentially cause issues for the upcoming festive season. The world’s largest economy has faced multiple problems recently, with backlogged shipping ports damaging the supply of goods.
Buttigieg noted that the current strains were being exacerbated by high consumer demand in the United States, with “retail sales through the roof”, which the country’s transportation infrastructure is struggling to keep up with. Allianz chief economic advisor Mohamed El-Erian spoke to a news source recently, saying that “things will get worse before they get better” in America, with analysts being wary of knock-on effects on the country’s economy.
In an attempt to clear the cargo backlog, Biden recently announced a commitment by the Port of Los Angeles to begin 24-hour operations. As the Christmas period is looming, President Biden’s administration has reassured people that they are doing everything possible to relieve supply chain bottlenecks, saying that the government will “re-evaluate all options.”
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Ford Motor Co to produce EV parts in UK factory after large investment
The American automaker, Ford, will invest up to $316 million to begin producing electric vehicle (EV) components in an existing plant in Liverpool in the United Kingdom. The factory in Halewood, an area of Merseyside, will be prepared to produce electric power units from 2024 to work towards the aim of only selling fully electric cars by 2030.
This decision brings positive news, as the future of the facility as well as 500 jobs will be saved. The choice to make EV parts adds to a growing trend among carmakers to manufacture these components themselves instead of being dependent on suppliers. Ford of Europe President Stuart Rowley says that “this is a part of the plan to insource strategic parts of the value chain of electric vehicles.”
This announcement is one of many made by Ford this year surrounding EVs, as it hopes to be ahead of other carmakers in the industry. The company previously announced plans to construct three battery factories and an assembly plant in the United States, and in February, plans to upgrade its factory in Cologne were also announced.
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