German Container Shipping Giant Hapag-Lloyd and Environmental Group NABU Urge IMO to Ban Unsustainable Biofuels
The International Maritime Organization (IMO) has set ambitious targets to decarbonize the shipping industry by around 2050, but discussions on how to achieve this goal remain ongoing. In light of this, Hapag-Lloyd, NABU, and several other companies are calling for a crucial change: removing ‘unsustainable’ biofuels from the IMO’s list of alternative fuels.
NABU and Hapag-Lloyd’s Joint Concern
Daniel Rieger, the Head of Climate and Environmental Policy at NABU, emphasizes the grave mistake of relying on biofuels. “Biofuels are a fatal mistake that must be stopped as soon as possible. Fuels derived from agricultural sources will not combat climate change but will instead intensify the biodiversity crisis,” he states.
“Agricultural fuels compete with food production and consume vast tracts of land, often leading to the destruction of intact ecosystems,” Rieger continues. “These areas are home to extensive plant and animal life and are significant carbon sinks, such as tropical rainforests, which become victims of land clearance. This action not only has negative environmental impacts but also reverses the intended climate benefits of biofuels.”
Hapag-Lloyd Joins the Call
Hapag-Lloyd aligns with environmental NGOs in their stance against agricultural biofuels. In collaboration with Norwegian companies Hurtigruten and Höegh Autoliners, as well as other organizations, Hapag-Lloyd has submitted a letter to the IMO highlighting the dangers of these fuels.
“At Hapag-Lloyd, we believe that decarbonization must be grounded in thorough lifecycle assessments that safeguard biodiversity and food security,” Arne Maibohm, Director of Decarbonization at Hapag-Lloyd, asserts. “Incentives for decarbonization should focus on scalable and sustainable solutions that benefit both people and the planet rather than those that endanger ecosystems or local communities.”
The Risk of Ineffective Fuel Criteria
The absence of clear fuel criteria poses a significant risk. Without these, new regulatory measures could inadvertently promote palm oil, one of the cheapest options to meet emissions standards. Although European countries have imposed restrictions on palm oil and soy biofuels, similar limitations are not yet in place globally.
“In our joint letter, we urge the IMO to exclude fuels derived from cultivated biomass from economic incentive systems,” Sönke Diesener, NABU shipping expert, explains. “These mechanisms should instead support genuine sustainable solutions and green fuels, such as hydrogen, rather than creating new environmental problems.”
Transport & Environment’s Concerns
A Transport & Environment (T&E) analysis reveals that nearly a third of global shipping could rely on biofuels in 2030, up from less than 1% currently. T&E asserts that, under the current draft of the IMO’s green fuels law, this increase could actually exacerbate climate change and threaten global food supplies.
The Cerulogy study, commissioned by T&E, indicates that palm and soy oil would likely dominate biodiesel usage in shipping by 2030 due to their affordability. However, these fuels are responsible for more carbon emissions than conventional shipping fuels when deforestation and land clearance are considered.
“The IMO risks causing more harm than good,” Constance Dijkstra, shipping manager at T&E, warns. “Palm and soy biofuels are devastating for the climate and take up significant land resources. Instead of creating new issues, the shipping community should focus on hydrogen-based green fuels.”
Challenges and Restrictions
While some shipping companies, such as MSC and CMA CGM, have explored waste biofuels like used cooking oil (UCO) and animal fats, these sources are unlikely to meet the industry’s future fuel demands due to their limited supply.
Fortunately, countries like France, Norway, and the Netherlands have already restricted or banned palm and soy biofuels domestically. The European Union’s FuelEU regulation also excludes the use of food crops in shipping fuels.
Despite these steps, no similar global restrictions exist. The joint letter advocates for the IMO to exclude crop-based biofuels from regulatory compliance, prevent them from benefiting from economic incentives, and prioritize truly sustainable hydrogen-derived fuels.
The Need for Clear Definitions
A clear definition of what constitutes ‘zero’ and ‘near-zero’ emission fuels is paramount. This definition should exclude deforestation-linked biofuels, restrict food-based biofuels, and incentivize green e-fuels made from green hydrogen, T&E asserts.
As global leaders gather in London to debate new regulations for decarbonizing shipping, the voices of Hapag-Lloyd, NABU, and their allies carry significant weight. Their calls for stringent regulations on biofuels reflect an urgent need to protect our environment while pursuing sustainable solutions.
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