Amazon and IKEA Lead Alliance to Reduce Emissions in Ocean Shipping

In a bid to decarbonize maritime transport, Amazon, IKEA, and over 30 companies in the Zero Emissions Maritime Buyers Alliance (ZEMBA) will issue a major tender in early 2025, seeking bids for cargo transport powered by near-zero emissions e-fuels. The alliance aims to shift the ocean shipping industry toward sustainable fuel options, with contracts set to begin in 2027, potentially reducing greenhouse gas (GHG) emissions by 470,000 metric tonnes.

Alliance members are committed to investing in e-fuels despite initial premiums, intending to lower costs as the market expands. Carl Berger from Amazon Global Logistics described the move as essential for reaching net-zero goals, highlighting the need for scalable alternatives to fossil fuels.

The tender will consolidate demand for green fuel, representing around 1.4 million containers of cargo equivalent on routes like Shanghai to Los Angeles. Ocean freight, responsible for over 3% of global GHG emissions, is a prime focus for ZEMBA’s efforts to achieve significant emission reductions in the shipping industry. Ingrid Irigoyen, President and CEO of ZEMBA, stated, “ZEMBA is making history by voluntarily catalyzing commercial e-fuel deployment through our next collective tender.” She emphasized that the alliance’s multi-year commitments can establish economies of scale, ultimately reducing clean energy transition costs.

Building on its April 2024 tender, which introduced liquefied biomethane as a green fuel alternative, ZEMBA’s upcoming tender will allow bids from individual carriers or consortiums capable of reducing emissions by at least 90%. The tender is developed in collaboration with the Center for Green Market Activation, Lloyd’s Register, and Pillsbury.

ZEMBA’s membership has grown to 40 companies, including new entrants like AIT Worldwide and SEKO Logistics, each pledging to meet climate targets by investing in sustainable shipping solutions. Resources on ZEMBA’s updated Sustainability Framework and tender details are available on their website.