A clear focus on reducing emissions

CLIMATE CHANGE

KCC works actively to reduce greenhouse gas (GHG) emissions from operations. Our combination carrier model provides lower carbon intensity compared to conventional shipping, and we continue to improve this through technical and operational measures.

KCC’s decarbonization journey has a unique starting point as the sole global player in combination carriers having 30-40% lower carbon emissions per transport work compared to standard vessels in KCC’s combination trade patterns. Over the next years we plan to further improve this competitive advantage through harvesting untapped efficiency and improvement potential across KCC’s business. In parallel we are actively preparing for the utilization of new low- and zero- carbon fuels.

Our pathway to 2030 and beyond

2026

24% reduction* in EEOI through voyage trading and energy improvement efficiencies

*Relative to 2018 baseline

2030

33% (primary) and 42% (striving) reduction* in EEOI through newbuilds and the use of alternative fuels

*Relative to 2018 baseline

2050

NET ZERO

From all operations

Illustration of technology to be installed

How we work

To deliver on our targets, decarbonization is a necessary an integral part of our business at all levels. Decarbonization is high on the agenda in discussions with our customers and impacts our trading decisions. We use dedicated resources and make large investments to improve the operational and energy efficiency of our vessels:

  • Optimize trading efficiency: KCC is actively working on maximizing cargo intake, maximizing loaded voyages and minimizing ballast through the optimization of combination trading, reducing waiting time in port, and avoiding high speed voyages through organized scheduling and customer co-operation.

  • Perfect voyage efficiency: KCC is actively working on improving weather routing, maintaining optimal trim, sailing at constant load, and lowering the use of energy onboard the vessels.

  • Improve energy efficiency: KCC works to improve the energy efficiency of the fleet through investing in and piloting a wide variety of technical improvements. The main focus is on minimizing hull friction, which is estimated to represent about 70% of energy use, by improving propeller and hull efficiency.

Our new CABU III vessels

Our three CABU newbuild vessels will be delivered throughout 2026. Designed for trades with caustic soda solution to Australia and returning with dry bulk commodities, the vessels offer around 20% lower carbon footprint and approximately 20% higher earnings capacity than the first-generation CABU vessels they will ultimately replace.

One of the three vessels will be delivered with wind-assisted propulsion, with suction sails installed at the front of the vessel.

Committee meeting

New regulations

Environmental regulations are emerging across the shipping industry, with shipping emissions included in the EU ETS since 2024, the FuelEU Maritime regulation requiring alternative fuel uptake since 2025, and the IMO currently developing its Net Zero Framework to globally regulate GHG emissions - possibly entering into force as early as 2028.

KCC works closely with other stakeholders to promote strong and fair regulations that incentivize the industry to decarbonize. In the short and medium term, such regulations in shipping are mainly an opportunity for KCC with its solutions having 30-40% lower CO2 emissions per ton transported compared to standard vessels in its main trades mainly due to substantially lower ballast. Hence, KCC’s combination carriers have a much lower exposure to new carbon taxes or alternative fuel mandates than competing standard vessels.

waves crashing

Sea Cargo Charter

As one of our initiatives to improve transparency in report and spur more industry action, KCC was a founding member of The Sea Cargo Charter (SCC), a global framework for assessing and disclosing the climate alignment of chartering activities of charterers and shipowners.

The SCC establishes a common, global baseline to quantitatively assess and disclose whether chartering activities are in line with internationally adopted climate goals. Thus, it also serves as an important tool to support responsible decision-making.