HD Hyundai Marine Solution leads the way

in standardizing carbon emission measurement for shipbuilding and shipping

Caption: HD Hyundai Marine Solution, HD Hyundai Samho, and CMA-CGM recently signed an agreement for LCA calculations.

(From left: Shin Hyun-dae, CEO of HD Hyundai Samho, Xavier Leclercq, Vice-President of CMA ships, and Kim Jeong-hyuk, Executive Director of HD Hyundai Marine Solution.)

HD Hyundai Marine Solution, a total solutions provider in the maritime industry under HD Hyundai, will standardize LCA-based life cycle carbon emission measurement for shipbuilding and shipping.

On the 15th, HD Hyundai Marine Solution announced that it had signed an MOU for 'LCA(Life Cycle Assessment) Calculation for New Ships with the CMA CGM Group, a global leader in sea, land, air, and logistics solutions, and eco-friendly shipbuilding company HD Hyundai Samho.

LCA is an environmental assessment framework that measures carbon emissions generated throughout a product’s entire life cycle, from raw material procurement to construction, operation, and dismantling. With the increasing focus on managing and reducing greenhouse gas emissions, especially in the 'Scope 3' category, LCA has gained significant attention in the shipbuilding and shipping industries. However, due to the complex processes and the massive amount of materials used in ship construction, implementing an LCA model has been challenging in these industries.

Under this agreement, CMA CGM and HD Hyundai Samho will provide extensive data on CMA CGM POINTE DU PITON, a 7,900 TEU dual-fuel LNG-powered containership delivered in August, while HD Hyundai Marine Solution will develop a global standard carbon emission calculation model, publish the LCA report, and undertake third-party verification for a reliable measurement of ship carbon emissions.

The LCA report with third-party verification is expected to be used for sustainability disclosures by European shipping companies. In January 2023, Europe announced the Corporate Sustainability Reporting Directive (CSRD), followed by the finalization of the European Sustainability Reporting Standards (ESRS) in July of the same year. From the 2024 fiscal year, CSRD will apply to large EU-listed companies first, and subsequently to SMEs within the region and certain non-EU companies meeting specific criteria. Major European shipping companies are strengthening ESG audits of shipyards and devising various methods for measuring ship carbon emissions in response to CSRD.

If a standardized, third-party verified LCA report is published, shipping companies will be able to use it to meet their CSRD disclosure obligations. HD Hyundai Marine Solution aims to standardize these methods through third-party verification from organizations like the KSA(Korea Standards Association), ultimately setting an international standard for carbon emissions management in the shipbuilding and shipping sectors. Furthermore, the company plans to integrate these standards with its digital solutions and eco-friendly retrofit services, providing a one-stop solution from emissions measurement to reduction strategies.

Lee Ki-dong, CEO of HD Hyundai Marine Solution, stated, “Based on HD Hyundai Group's shipbuilding expertise, we aim to standardize LCA measurements and integrate them with our eco-friendly ship modification and digital solutions to not only measure but ultimately reduce carbon emissions in shipbuilding and shipping.” He added, “To this end, we will promote LCA-based full lifecycle carbon emission measurements in collaboration with various shipping companies and classification societies.” He also emphasized, “This project will contribute to reducing the carbon footprint across the shipbuilding and shipping industry and establishing new standards for a sustainable future.”

Shin Hyun-dae, CEO of HD Hyundai Samho, stated, “With the strengthening of carbon emission regulations and the mandatory nature of sustainability disclosures, there is an increasing need for systematic and reliable LCA-based carbon emission management in the shipbuilding industry.” He added, “Through this LCA measurement, we aim to position our shipyard as an eco-friendly shipbuilder and further enhance our competitiveness in the global market.”

Xavier Leclercq, Vice-President, CMA Ships, CMA CGM Group, stated, “With our partner HD Hyundai, CMA CGM is participating in the first Life Cycle Assessment conducted on one of our containerships to quantify and assess the environmental impact associated with the vessel's entire lifecycle. This collaboration is a new milestone on our Group’s path to become Net Zero Carbon by 2050. To reach this ambitious goal, CMA CGM focuses on reducing energy consumption through operational excellence and asset optimization, while increasing the share of low-carbon energies in its energy mix.”