Dive Brief:

• A.P. Moller – Maersk has joined a global initiative to expedite the transition to low-carbon steel with the goal of procuring 100% net-zero steel by 2050, the ocean carrier announced in April.
• Maersk, which has a goal of net-zero carbon emissions by 2040, said in April that it will become a part of SteelZero, a program that requires members to "procure, specify or stock 100% net zero steel by 2050," according to a release.
• The carrier will work with suppliers to address key barriers in decarbonizing the industry, Maersk Head of Responsible Ship Recycling Capt. Prashant Widge told Supply Chain Dive in an email. Working groups or roundtables "will assist organisations in developing a roadmap to fulfill their commitment to net zero steel," he said. 

Dive Insight:

Steel accounts for approximately 90% of a ship's weight and the maritime sector "is starting to join the drive to decarbonize this key material," Jen Carson, head of industry at Climate Group, which leads SteelZero, said in an email. Maersk is the first company in the shipping and maritime sector to commit to net-zero steel, according to Carson. 

The carrier will focus on recycling ships as one of the ways it meets its net-zero goals.

"Global ship recycling volumes are projected to nearly double by 2028 and quadruple by 2033," Senior VP & CTO at Maersk Palle Laursen said in a statement. Recycled steel will be recognized as a "viable raw material" for steel customers with net-zero emissions targets, he said. 

More than 700 vessels operated by Maersk are projected to be recycled in the next decade with "a large proportion being post-panamax size ships," according to the statement. By joining SteelZero, Maersk will work with industry organizations committed to "climate-aligned" steel procurement and advancement towards the responsible production and sourcing of steel. 

Steel contributes 7% of global greenhouse gas emissions, according to the International Energy Agency.  

"It is imperative to find a low-carbon process for primary steelmaking," Henriette Hallberg Thygesen, CEO of Fleet & Strategic Brands at Maersk, said in a statement. "We will collaborate with our customers, suppliers and across the entire steel value chain."

Other carriers are also moving to recycle ships by joining the Ship Recycling Transparency Initiative (SRTI), a platform aimed to accelerate the voluntary approach to responsible ship recycling which launched in 2018. Maersk is a founding member of the initiative. CMA CGM, Hapag-Lloyd, Evergreen and NYK Line are among participating carriers, providing information regarding their ship recycling policy, standards and practices.