Brazil and Norway Collaborate on Green Shipping Corridor to Combat Climate Change

Brazil and Norway have decided to establish a green shipping corridor between the two countries in an effort to contribute to zero-carbon emission targets in maritime transport.

Silvio Costa Filho, the Minister of Ports and Airports, and Odd Magne Ruud, Norwegian Ambassador to Brazil, recently signed a memorandum of understanding (MOU) to promote sustainable maritime transport.

As explained, the objective of the collaboration is to create a maritime corridor for vessels that use advanced technology and low- or zero-carbon fuels and significantly reduce greenhouse gas (GHG) emissions.

“This is a project that will bring benefits to the entire world, not just to the two countries. Together with the Norwegian government, we are committed to making the maritime mode even more sustainable and ecologically developed. We seek to build a sector that combines economic development and environmental responsibility, positioning Brazil as a reference on the global stage,” the Minister of Ports and Airports highlighted.

Specifically, the MOU includes a series of initiatives that should benefit the entire logistics chain, such as implementing the green maritime corridor, fostering business cooperation between Brazil and Norway to promote sustainability, initiating low- or zero-carbon supply chains, in addition to contributing to the United Nations 2030 Agenda and the Paris Agreement.

“Since the beginning of our relations, the ocean has been the link that unites Brazil and Norway. Both countries have the knowledge and technology necessary to advance towards more sustainable maritime transport. With a solid maritime history, Norway reaffirms its commitment to the energy transition and recognizes, in this innovative project, a strategic opportunity to demonstrate to the world the potential of more sustainable navigation,” Ruud commented.

Said to be part of global efforts to combat climate change, the initiative is in line with the Clydebank Declaration for green maritime corridors, signed during the Climate Summit in Glasgow in 2021 (COP26). The declaration was one of the first ‘big steps’ to decarbonize maritime transport.

The pilot project will involve key industry partners and research institutes on both sides of the Atlantic to identify strategic routes and ports, as well as develop and enable the use of zero-emission fuels.

Norway and Brazil intend to present one or more options for a sustainable transatlantic corridor at the Climate Summit (COP30), which will be held in Belém from November 10 to 21 this year.

Sustainability Commitments

Committed to implementing sustainable measures in transport modes, the Ministry of Ports and Airports recently launched the country’s first sustainability policy for the logistics mode. The initiative seeks to encourage sustainable practices and promote, through joint actions with industry associations and other agencies, a sustainability agenda focused on the sustainable development of the port, waterway, and airport sectors in Brazil.

In the public sector, the Annual Sustainability Policy Agenda will be drawn up and will include projects, studies and possible regulatory changes. For the private sector, in turn, the implementation of the policy will be made possible through the Pact for Sustainability, a commitment aimed at companies interested in adopting environmental, social, and governance (ESG) practices.

The mission to promote sustainability and decarbonization in the transportation sector includes an initial agenda that includes 15 actions, including the electrification of ports, to guarantee clean energy for ships awaiting authorization to dock and international agreements, and the use of sustainable fuel for aircraft, also known as SAF.

The implementation of the green shipping initiative project is set to begin in Brazilian ports this year.

Is Brazil for or against Maritime Decarbonization?

As Brazil prepares to host the United Nations Framework Convention on Climate Change later this year, its government has been promoting sustainable development as part of its Agenda for a More Sustainable Brazil which was unveiled in 2022.

According to management consulting firm McKinsey & Company, the South American country—one of the largest GHG emitters in the world—has the potential to become a ”sustainability powerhouse” and play a crucial role in the global energy transition. Due to an abundance of renewable energy sources in the country, it is also positioned to become the world’s largest sustainable fuel producer at a time when the maritime industry needs to switch to alternative fuels such as hydrogen, ammonia and methanol.

With over 95% of its trade exchanges conducted by sea, Brazil is one of the countries in the Council of the International Maritime Organization (IMO) with the greatest interest in maritime trade.

However, Brazil recently opposed the proposed carbon levy on shipping, the world’s first universal fee on an international polluter. In parallel to the levy, governments around the world also negotiate a global fuel standard (GFS), aimed at driving up the use of zero-emission energy on ships to effectively fully power the sector by 2050.

Brazil, along with several other countries, reportedly believes that the proposed levy could endanger exports from developing countries, raise food prices and increase inequalities among and within countries.

The motivation behind Brazil’s real reason for blocking the shipping industry’s climate action remains a mystery and open to interpretation, including the possibility the country, which is seen as the largest oil and gas producer in Latin America, has come to the conclusion its economic interests are at risk with the new carbon measure.