To expedite the group’s decarbonization, CMA CGM raises a $1.5 billion fund
CMA CGM is creating a reserve for energies of around $1.5 billion. The reason behind the creation is to hasten its energy transition and to achieve decarbonization completely by 2050. Moreover, they are aiming to save renewable energy by investing in projects which support the same.
They are also searching for corporations that share the same vision. The fund will have a dedicated management team and will be unveiled on October 2022. The reserve will focus on the creation of new fuels, low-emission transportation ideas across the land, air, or water and its port as well as offices.
They are also motivating their employees to come up with innovative ideas. Rodolphe Saadé, Chairman and CEO of the CMA CGM Group said that they want to decarbonize their business and this fund will help them to achieve their goal as they have already allocated the resources. CMA CGM group is also concentrating on LNG- fueled ships and encouraging businesses that are manufacturing alternative fuel options.
Fund's mission is to promote the development of large-scale manufacturing facilities for biofuels, biomethane, e-methane, carbon-free methanol, and other alternative fuels. Salamander projects have a target of producing 11000 tons of biomethane per year from 2026. The fund is also a way of involvement of CMA CGM group with Salamander due to its production of renewable energies.
Their partnership with Engie is targeting to generate 200,000 tons of renewable gas per year by 2028 for CMA CGM and the whole industry. Their collaboration with Titan will be focused on the liquefication project and biomethane production. The group is also planning to participate in Jupiter 1000 project in France which is also sharing the same vision.
Along with the shipping fleet, the fund will work to hasten the decarbonization of CMA CGM's truck fleets, warehouses, and port terminals. The group is all set to provide transatlantic routes by the end of 2024 with Neoline as they have acquired a stake in the company.
The fund will also boost research and development projects. Chairman of CMA CGM also predicted the decline in consumer spending, which was quite foreseeable will cause a decline in shipping demand and return to more typical global trade circumstances in the second half.