The way to a faster green conversion for companies
Time to market can save Maersk a lot of money and help towards a faster green conversion
The Danish shipping giant Maersk is facing massive investments in green conversion, in order to reach their
net-zero emission goal in 2040, does it need to take that long, or would it be really smart business to do it faster?
Let’s look at the numbers:
Maersk's greenhouse gas emissions are approx. 34 million tons per year it will cost them approx. $420 million in climate taxes per year.
What would the calculation look like if they invested in offset through Planet-a-mor?
Through an investment in trees, Maersk can achieve their climate goals in the following way:
A discharge of 34 million tons greenhouse gasses per year will Through PAM require a purchase of 216.000 hectares of newly planted forest through, which will correspond to approx. 250 million new trees.
At PAM, it will cost $6.2 billion. It is of course a massive investment, but it is a one-off investment that makes a lot of sense.
The 34 million tons would be offset every year, the investment converted into Carbon credits (VCM) would correspond to a total gain of at least $10.2 billion (with a VCM value of $40 the market will probably increase considerably)
Since Mærsk will own the trees through the PAM model, their investment in the raw timber will mean an additional gain of $13.5 billion when the trees are mature and ready to be harvested, (present raw timber market price) which, on average, due to the different types of wood, will give a continuous return over 10-26 years.
So is green transition good business? an investment of $6.2 billion will yield a total profit of $17.5 billion over a period of 10-26 years. They would have achieved their climate goals immediately, they would have helped the indigenous people in the rainforest, they have created countless new habitats with increased biodiversity, Mærsk will save $420 million in climate taxes per year.
Nature, people, and the planet would smile and be full of love and gratitude towards Mærsk, this can for sure be called a win-win-win.
At PAM you can buy trees that have been planted and managed with the permaculture model as an ethical and practical guide.
Quotes from Denmark’s Radio news:
"The reform is now set to cost Maersk up to DKK 2.8 billion per year. Of this, DKK 1.9 billion for the international traffic in and out of the EU, which Mærsk and the Danish government therefore worked to keep free from taxation to begin with.
Maersk releases climate-damaging greenhouse gases of 34 million tons a year. It is almost as big as the entire Danish society - including agriculture, industry and all Danish households together." (Denmark’s Radio News)
“Maersk is in the process of a green conversion of their more than 700 ships. And the shipping company aims to be CO2-neutral by 2040.
- To achieve this, we actually need as ambitious a climate tax as possible. So, this is what we have been working towards throughout the process, says head of sustainability at Mærsk”, Lene Serpa Chief of sustainability Mærsk.