KCC releases revised Environmental Strategy until 2050 to pave way for shipping’s cost-effective decarbonisation

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Klaveness Combination Carriers (KCC), one of the world’s largest operators in its sector, has released its revised Environmental Strategy for 2023-2050, setting out a phased strategy for the company to gradually decarbonise in cost-effective fashion.

“Our course is set on a 45% reduction in carbon intensity by 2030 compared against 2018,” says CEO Engebret Dahm, “driven largely by substantial efficiency improvements. With our combination trading already delivering 30-40% lower carbon intensity than our competitors, we are front and centre to deliver on the transition to cost-effective, low carbon shipping.”

KCC notes that three years on from releasing its first Environmental Strategy in 2020, shipping is falling behind schedule on IMO’s 2030 targets as the choice and availability of new fuels, technology, and future regulatory framework remains highly uncertain.

Dahm comments: “Given the uncertainty surrounding our industry, our current focus is on delivering sustainable and cost-effective decarbonisation through efficiency improvements while preparing for the future transition to new fuels. Our decarbonisation journey has a unique starting point with our combination carriers, and we are full steam ahead to reach our revised ambitions.”

KCC’s principal ambitions for the period 2023-26 are to reduce carbon intensity by 30% compared to 2018 using the following key levers:
• Optimise trading efficiency – Customer collaboration is essential, with sustainability-linked freight contracts having the potential to play a key role. New trading rules including a shadow carbon pricing will increase incentives for the most carbon efficient trading.
• Perfect voyage efficiency – Fleet digitalization and continued investment in people onboard and onshore.
• Improve energy efficiency – Continued deployment of ongoing and new energy efficiency initiatives in the fleet.

Principal ambitions for 2027-30 are to reduce carbon intensity by 45% compared to 2018, to which end the company will:
• Introduce biofuels – Sustainable biofuels shall constitute a minimum 15% the fuel mix.
• Phase in zero emissions fuels and vessels – Fleet renewal is taking place with an ambition to see the introduction of the first zero emission vessel by 2030.
• Seek regulatory and customer support to spur the fuel transition –in order to get the first zero-emission vessel in service and start using zero-emission fuels in daily operations. KCC says it is unlikely to succeed advancing far with the targeted fuel transition on its own.

Looking ahead to 2050, by when it aims to achieve net zero across all operations. KCC believes it will have a competitive advantage in:
• Delivering on cost-effective decarbonisation – Unique and efficient solutions, experience and competence, and close customer cooperation play to KCC’s strengths.
• Being well prepared to meet future regulatory requirements – KCC’s superior carbon efficiency will offer an important competitive advantage when new regulations are implemented, for example with trades to and from the EU after the implementation of shipping into EU ETS from 2024.

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