Major shipping companies Hapag-Lloyd AG, Hurtigruten and Louis Dreyfus Armateurs, as well as numerous NGOs, have called on the IMO (International Maritime Organization) to exclude biofuels from its list of green alternatives to traditional fossil fuels.
The IMO, the United Nations specialised agency for shipping, is currently holding its 18th Intersessional Working Group (between 17th-21st February[i]) relating to the reduction of GHG emissions in the sector. During these talks it is reported that negotiations will centre around mid-term GHG reduction measures and potentially a global fuel standard and carbon levy[ii].
In a joint statement, leading shipping companies including Hapag-Lloyd AG, Hurtigruten, and Louis Dreyfus Armateurs, as well as T&E (European Federation for Transport and Environment) have called for the IMO to exclude crop-based biofuels from regulatory compliance. The signatories highlight that several countries including France, Norway and the Netherlands have already restricted or stopped using palm and soy biofuels domestically, while the EU itself has excluded the use of food crops from its flagship shipping fuels regulation. Yet, they note that at the global level no such restrictions are proposed.
They argue that unless legally binding safeguards are introduced, there is a risk that fossil fuels will be replaced with ‘unsustainable biofuels’, noting that in 2009 the EU’s push towards biofuels led to consumption of palm oil-based biofuels doubling between 2010 and 2020. Scientific evidence, they claim, later demonstrated that 45% of palm oil expansion happened at the expense of carbon rich ecosystems like forests or peatlands over that same period[iii]. Similar findings have been uncovered for other crop-based feedstock such as soy, they suggest.
Constance Dijkstra, shipping manager at T&E, said: “As things stand the IMO risks doing more harm than good. Palm and soy biofuels are devastating for the climate and they take up vast amounts of land. Instead of creating new problems, the global shipping community must focus on green fuels made from hydrogen. Burning crops is never the answer.”[iv].
Further, research from T&E and Cerulogy claims that the IMO’s green strategy could release an additional 270 million tonnes of GHG emissions in 2030 compared with today, and the vast majority of biofuel would stem from palm and soy (60%). They suggest that close to 300 million bottles of vegetable oil could be diverted to powering ships every day in 2030, putting pressure on grocery prices[v].
“The fuel-intensive shipping industry would need vast amounts of farmland. 34 million hectares in 2030 - the total area of Germany - will be needed to produce enough crops to meet the increased biofuels demand from the shipping industry. This could have serious impacts on food supplies. Land that could be used for farming would need to be converted to growing biofuel crops, while burning vegetable oil in ships will deprive supermarkets of a staple food item”[vi].
In a separate open letter, more than 60 NGOs have claimed that the shipping industry’s plans threaten the rainforest, communities, and climate.
“Shipping consumes a massive 5% of global oil demand – more than any single country outside China and the US. However, some countries and companies are quietly planning to set rules that aim to replace most of this huge fossil fuel demand with biofuels. This risks causing even more climate and environmental damage than oil, not less”[vii]
Palm oil, which is the cheapest virgin feedstock for HVO (Hydrotreated Vegetable Oil) production, is a major cause of deforestation, leading to biodiversity loss and the release of carbon dioxide into the atmosphere. Every year, around 5 million hectares of forest are lost to deforestation, with palm oil and soybean production accounting for an estimated 18% of this[viii].
The NGOs also criticised a recent proposal from Brazil (a major producer of soybeans) which backed biofuels as a long-term solution for shipping:
“The country is the world’s second-largest biofuel producer after the U.S., leading in sugarcane-based ethanol production and accounting for 39% of global soybean production by 2024 (USDA, 2024) - meaning that the cultivation of soy is making use of a land area comparable to the size of Sweden”.
[i] Marine Environment Protection Committee (MEPC)
[ii] NGOs Call For IMO to Exclude Biofuels from Global Fuel Standard - Ship & Bunker
[iii] EUR-Lex - 52019DC0142 - EN - EUR-Lex
[iv] Shipping companies call for limits on… | Transport & Environment
[v] UN shipping body’s green fuels law could… | Transport & Environment
[vi] Ibid
[vii] Shipping industry’s biofuels plan threatens rainforests, communities and climate – biofuelwatch
[viii] With palm oil in 50% of consumer goods, how can we manage its impact on deforestation?
Lauren has extensive experience as an analyst and market researcher in the digital technology and travel sectors. She has a background in researching and forecasting emerging technologies, with a particular passion for the Videogames and eSports industries. She joined the Critical Information Group as Head of Reports and Market Research at GRC World Forums, and leads the content and data research team at the Zero Carbon Academy. “What drew me to the academy is the opportunity to add content and commentary around sustainability across a wealth of industries and sectors.”
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