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DP World to invest $500m to cut CO2 emissions over five years

The Ukraine war has forced DP World to put its Russia investment plans on hold

Dubai-owned ports giant DP World plans to invest up to $500 million to cut CO2 emissions from its operations by nearly 700,000 tonnes over the next five years, UAE state-owned WAM news agency reported, citing chairman and group CEO Sultan Ahmed Bin Sulayem.

He reinforced the company’s commitment to sustainability by taking on the Green Shipping Challenge (GSC) at the Cop27 summit in Sharm El Sheikh, Egypt.

Launched earlier this year by US special presidential envoy for climate change John Kerry and Norwegian prime minister Jonas Gahr Støre, the challenge encourages countries, ports, companies, and other actors in the shipping value chain to come forward with concrete announcements to further ocean-based climate actions.

Bin Sulayem said that the planned reduction in carbon emissions by nearly 700,000 tonnes represents a 20 percent cut from 2021 levels.

DP World’s plans include replacing its global fleet of assets from diesel to electric, investing in renewable power and exploring alternative fuels.

“We have already committed to becoming a carbon neutral enterprise by 2040 and net zero carbon enterprise by 2050. We will work with our global partners to develop an action plan to advance the goals of the GSC and encourage industry players to devise plans to address climate change,” the chairman said.

DP World will focus on three main pillars of activity, including electrification of its ports and terminals equipment, investment into renewable energy and research and development projects that will look into alternative fuels, vessels and vehicles across its portfolio.

In January, DP World entered a strategic partnership with the Mærsk Mc-Kinney Møller Centre for Zero Carbon Shipping, an independent, not-for-profit organisation, undertaking intensive research and development to find practical ways to decarbonise the global maritime trade industry.

The global decarbonisation strategy aims first to reduce absolute emissions as much as possible, then focus on replacing fossil fuel with renewable energy resources, and finally purchase offsets for the hard-to-abate remaining emissions for the 2040 carbon-neutral target.

Complementing technology-driven solutions such as replacing vehicles and fuels, DP World is working with local communities where it operates to establish carbon offset schemes and carbon sinks such as mangrove forests, the statement said.