21 June 2023 (Lloyd's List) - SHIPPING needs to look at improvements in scrap steel supply, managing regulation and improving traceability, according to a report by the Sustainable Shipping Initiative.

With the steel industry being responsible for 7%-9% of global greenhouse gas emissions, the report suggested developments in these areas to aid towards 2050 net zero goals.

“Steel makes up 75%-85% of a vessel by weight, making it a critical factor to address when looking at shipping’s Scope 3 GHG emissions, and steel recovered at a ship’s end-of-life is considered high-quality and desirable scrap steel,” SSI said in its report.

The report defines green steel as the product that is certified at the highest level of environmental, social and governance levels, using the definition by industry group SteelZero, which counts major shipping companies such as Maersk as members.

Maersk has committed to using 50% low emission steel by 2030. The ultimate goal of the Danish giant is to utilise 100% net zero steel by 2040.

“The shipping and steel sectors are interconnected and there are untapped opportunities for the two to work together to decarbonise sustainably. As a demand sector for green steel, shipping can support the steel sector’s decarbonisation journey while simultaneously addressing a source of its own scope 3 emissions,” said SSI head of decarbonisation Andreea Miu.

The SSI outlines how to increase usage of recycled material by using scrap steel from end-of-life ships in the production of new units, adding that more emphasis should be placed on employing scrap steel from other industries.