SBTi verifies ESL Shipping’s science-based net-zero targets

October 29 ------ Dry bulk cargo carrier ESL Shipping has received approval from the Science Based Targets initiative (SBTi) for its near and long-term emission reduction targets.

ESL Shipping was granted approval as the first company in the general cargo segment, meaning that its targets align with the latest climate science to limit global warming to 1.5 degrees Celsius in line with the Paris Agreement. The company has committed to reducing its well-to-wake GHG emissions by 59.6% per ton-nautical mile by 2030, which equals a 47.1% absolute reduction. In the long term, the company aims to achieve net zero emissions by 2040 and to reduce well-to-wake emissions by 97.8% from the 2023 base level.

Although outside the scope of the GHG Protocol, the SBTi requires the use-phase emissions of transported fossil fuels to be included in the target boundary. ESL Shipping underlined its commitment to discontinue the transport of fossil fuels, such as coal, by 2030, and to reduce emissions from the use phase of transported fossil fuels by 100% by 2030 from the 2023 baseline. “This milestone reflects our deep commitment to climate action and the transformation of maritime logistics. Through fleet renewal, operational efficiency, and the increased use of renewable fuels, we are not only reducing emissions but also setting a new standard for sustainable shipping. Our transition plan is ambitious, but we are determined to deliver on it,” Mikki Koskinen, Managing Director of ESL Shipping, commented.

Recently, the company reported on the progress of its project for next-generation methanol-powered vessels, also known as Green Handy, with model tests completed at the SSPA facility in Gothenburg to confirm that the vessel’s performance aligns with calculations. Steel production for the vessels is scheduled to begin in the summer of 2026, with the delivery of the first vessel planned for the third quarter of 2027.

ESL Shipping placed an order for four methanol-fueled bulk carriers at China Merchants Jinling Shipyard (Nanjing) in October last year. The units will be 1A ice-class vessels that can be operated entirely fossil-free by using green hydrogen-based e-methanol or biomethanol.

Earlier this year, the company signed a €70 million loan agreement with Swedish finance provider Svenska Skeppshypotek to partially finance the series of four 17,000 dwt Handysize vessels. In April 2025, the company also signed a 10-year, €45 million loan agreement with the Nordic Investment Bank (NIB) to finance the construction of the four newbuilds.

Source: offshore-energy.biz