Climeworks signs carbon removal deal with shipping giant

Swiss carbon removal specialist Climeworks will provide three carbon removal technologies to Japan-headquartered NYK, one of the world’s largest shipping companies.

The partnership will be Climeworks’ first in Japan and will support NYK’s decarbonisation goals, which aim to achieve net-zero greenhouse gas emissions across all three scopes by 2050.

Climeworks launched its Solutions offering last year to complement its direct air capture removals with tailored portfolios of engineered and nature-based approaches. The NYK portfolio includes biochar, bioenergy with carbon capture and storage, and enhanced rock weathering.

“Scaling diverse high-quality solutions is what science recommends, what will lower the barriers for entry for others, and what companies will ultimately benefit from the most,” said Andreas Aepli, CFO of Climeworks.

Global shipping is responsible for approximately 3% of global emissions annually. In 2023, emissions reached 706 million tonnes of CO2, which was a 1.1% increase on the previous year.

While there have been some efforts to improve ship efficiency, emissions have continued to rise in line with the increase in global trade, 90% of which is carried by ships.

This prompted the International Maritime Organisation (IMO) to pass an agreement last month that makes shipping the first industry in the world with internationally mandated targets to reduce emissions.

Owners of large international vessels now must increase their use of less-carbon-intensive fuels or face a penalty of up to $380 per tonne of CO2 emissions they emit from burning fuel.

“By integrating CDR [carbon dioxide removal] alongside compliance with IMO’s regulations, NYK aims not only to accelerate emissions reductions but also to anticipate the maritime industry’s growth trajectory beyond 2030,” said Yuko Tsutsui, Managing Executive Officer at NYK.

While the IMO’s regulations focus primarily on the use of lower-carbon fuels, NYK’s partnership with Climeworks targets the harder-to-abate residual emissions that remain even with such transitions, through direct carbon removal.