Shipping Giants Collaborate on Standardized Life Cycle Assessment Framework for Emissions Calculation

HD Hyundai Marine Solution, part of the South Korean conglomerate HD Hyundai, has partnered with fellow compatriot HD Hyundai Samho shipyard and the French shipping giant CMA CGM to develop a standardized life cycle assessment (LCA) model aimed at quantifying carbon emissions in shipbuilding and shipping.

This collaboration marks a significant step toward enhancing sustainability within the maritime industry. By creating a uniform framework for emissions calculation, these companies hope to set a benchmark that not only improves environmental accountability but also promotes innovation in eco-friendly practices.

The initiative could lead to more efficient ship designs, optimized fuel usage, and reduced emissions throughout the entire life cycle of maritime vessels. Furthermore, establishing such a model might encourage other industry players to adopt similar standards, driving a collective movement toward greener shipping practices. As the maritime sector faces increasing regulatory pressures and a global push for sustainability, this partnership could play a pivotal role in shaping the future of eco-conscious shipping.

As an environmental assessment framework, a life cycle assessment (LCA) is a comprehensive tool designed to calculate carbon emissions produced throughout the entire life cycle of a product. This includes all stages, starting from raw material procurement, through construction and operation, and ultimately to dismantling and disposal.

By examining each phase, the LCA provides valuable insights into the environmental impact of a product, helping to identify areas for improvement and potential reductions in emissions. This holistic approach not only aids manufacturers and industry stakeholders in making more informed decisions but also supports the development of strategies aimed at minimizing carbon footprints and enhancing sustainability practices. As industries, including shipping and shipbuilding, increasingly prioritize environmental responsibility, the implementation of LCA methodologies becomes crucial for tracking progress and ensuring compliance with sustainability goals.

Under the memorandum of understanding (MoU) signed by the three parties, CMA CGM and HD Hyundai Samho will supply critical data on the CMA CGM Pointe du Piton, a 7,900 TEU dual-fuel liquefied natural gas (LNG)-powered containership. This Malta-flagged Post Panamax vessel was delivered to the French shipping giant in August 2023, marking a significant addition to their fleet.

HD Hyundai Marine Solution will take on the responsibility of creating a "global standard" for carbon emissions calculation related to maritime operations. This includes not only the development of the emissions model but also the publication of the life cycle assessment (LCA) report that will detail the findings from the data analysis. To ensure the credibility and accuracy of these measurements, HD Hyundai Marine Solution will conduct third-party verification, thereby providing a reliable framework for assessing ship carbon emissions.

This collaborative effort is designed to enhance transparency within the maritime sector and promote accountability in environmental practices. By establishing standardized methodologies for emissions calculation, the initiative aims to facilitate the broader adoption of sustainable practices across the industry. The data and insights generated from this partnership are expected to help shipowners and operators make informed decisions that align with global sustainability goals.

In doing so, the parties involved hope to set a precedent for emissions measurement that can be widely adopted across the shipping industry, supporting the transition towards greener operations and contributing to the overall reduction of the maritime sector's environmental footprint.

“We aim to standardize life cycle assessment (LCA) measurements and integrate them with our eco-friendly ship modification and digital solutions to not only measure but ultimately reduce carbon emissions in shipbuilding and shipping,” stated Lee Ki-dong, CEO of HD Hyundai Marine Solution. His comments highlight the company's commitment to enhancing sustainability within the maritime sector by creating a comprehensive approach that combines rigorous emissions assessment with innovative technology and practices. By developing standardized metrics for LCA, HD Hyundai Marine Solution intends to provide industry stakeholders with the tools needed to effectively track and minimize their carbon footprints, supporting the broader goal of achieving greener and more sustainable shipping operations.

In January 2023, Europe introduced the Corporate Sustainability Reporting Directive (CSRD), which was followed by the finalization of the European Sustainability Reporting Standards (ESRS) in July of the same year. The CSRD will be applicable to large EU-listed companies starting in 2024, and it will eventually extend to small and mid-sized enterprises within the region, as well as certain non-European companies that meet specific criteria.

In parallel, European shipping companies have been enhancing their Environmental and Sustainability Framework (ESF) audits of shipyards and exploring various methods for measuring emissions in response to the CSRD requirements. Hyundai Marine Solution has indicated that once a standardized third-party verified life cycle assessment (LCA) report is published, shipping companies could leverage it to fulfil their CSRD disclosure obligations.

In the LNG sector, HD Hyundai, the parent company of Marine Solution, also made significant strides recently. In October 2023, HD Hyundai unveiled a new “next generation” smart ship solution aimed at enhancing the efficiency of vessels. This Integrated Smart-ship Solution is an ICT-based system for vessel operation and equipment management that collects real-time data from onboard devices, providing analytical services for critical equipment.

The latest version, ISS 2.0, builds on a cloud platform originally developed by HD Hyundai Heavy Industries in 2017 in collaboration with HD Korea Shipbuilding & Offshore Engineering (HD KSOE) and HD Hyundai Marine Solution. This innovative approach not only enhances operational efficiency but also aligns with broader sustainability goals, reflecting the company's commitment to advancing technology in the maritime industry while meeting regulatory requirements.