DP World Invests $1m in Low-Carbon Shipping Partnership with Hapag-Lloyd
DP World has announced a $1 million investment in Hapag-Lloyd’s Ship Green programme to help customers reduce emissions from ocean freight through verified carbon insetting, reinforcing the logistics group’s commitment to lower-carbon global trade.
The investment, which will be made over the next four quarters through DP World’s Americas ocean freight division, is expected to avoid 4,762 tonnes of CO₂ by replacing conventional marine fuels with certified waste-based biofuels.
The biofuels used under the agreement can reduce greenhouse gas emissions by at least 84% compared with traditional marine fuels. Emissions savings will be measured on a well-to-wake basis, taking into account the entire lifecycle of the fuel, from production through to its use onboard vessels.
The partnership centres on Hapag-Lloyd’s Ship Green product, which uses carbon insetting rather than traditional carbon offsetting. Instead of compensating for emissions elsewhere, carbon insetting delivers emissions reductions directly within the ocean freight supply chain by substituting fossil-based marine fuels with certified sustainable biofuels. The resulting emissions savings are independently verified and allocated to participating customer shipments.
DP World said the agreement will allow customers of its Americas ocean freight business to access verified carbon inset solutions that support their wider supply chain decarbonisation strategies while reducing the environmental impact of international shipping.
Terry Donohoe, Senior Vice President of Freight Forwarding for DP World in the Americas, said the partnership demonstrated how the company’s ocean freight business is evolving to deliver both commercial value and measurable sustainability outcomes. He said working closely with Hapag-Lloyd had created a practical solution that advances DP World’s decarbonisation ambitions while providing customers with independently verified emissions reductions.
The announcement highlights the growing role of carbon insetting as companies seek more direct and transparent ways to reduce supply chain emissions. Unlike offsetting schemes, which fund emissions reductions outside a company’s operations, insetting lowers emissions within existing transport networks, making it an increasingly attractive option for businesses with ambitious climate targets.
The investment also reflects broader efforts across the global shipping industry to reduce its environmental footprint through the adoption of sustainable fuels and innovative emissions reduction strategies. As regulators and customers place greater emphasis on supply chain sustainability, shipping companies and logistics providers are accelerating investment in practical low-carbon solutions that can be deployed at scale.
DP World said the agreement forms part of its wider strategy to expand sustainable logistics services and help customers achieve their decarbonisation goals while supporting the transition towards cleaner international trade.
