The World Economic Forum, in partnership with US Special Presidential Envoy for Climate John Kerry, announced the First Movers Coalition, a new platform for corporate commitments to create demand for low carbon technologies. Trafigura is a founding member of the coalition and at an event to mark its formal launch in Glasgow today, Trafigura Executive Chairman and CEO Jeremy Weir confirmed the Group’s commitment to drive decarbonisation and the uptake of low-carbon technologies in the shipping and aluminium sectors.
The First Movers Coalition focuses on eight key sectors, seven of which account for more than a third of global carbon emissions but do not have cost competitive energy alternatives to fossil fuels. The eighth – direct air capture – could reduce atmospheric carbon-dioxide levels to help achieve net-zero global emissions but also requires technological innovation to reach commercial viability. Phase one commitments announced today comprise the aviation, trucking, shipping and steel sectors. Phase two commitments for the remaining sectors, including aluminium, will follow in 2022.
In shipping, Trafigura has committed to own and operate six ammonia-carrier vessels which will be converted to use low-carbon ammonia as their primary fuel source by 2030, if technically feasible. This represents approximately 18 percent of Trafigura’s current owned fleet.
The vessels will be built with the technical capability to switch fuels from conventional fuel oil to low-carbon (blue or green) ammonia when the MAN Energy Solutions two-stroke ammonia engine that Trafigura is co-sponsoring becomes commercially available.
Trafigura is also committed to working with the First Movers Coalition to agree future purchasing commitments for low-carbon aluminium, to incentivise and work with producers and consumers of aluminium to decarbonise the industry.
The commitments made by members of the First Movers Coalition aim to be collectively significant enough to commercialize decarbonization technologies. The First Movers Coalition provides opportunities for a wide range of companies to make commitments, take action and build the clean and profitable supply chains of the future. It also brings together a range of civil society and expert organizations to build momentum, complement ongoing efforts and input into the design of the initiative.
Jeremy Weir, Executive Chairman and CEO of Trafigura said: “The First Movers Coalition is an important initiative that will drive investment in technologies and solutions to achieve net zero. In the shipping sector, this marks another important signal by industry of its willingness and readiness to decarbonise. We now need an enabling global regulatory framework to accelerate progress and put a price on carbon for marine fuels.”