The Panama Canal has launched a process to decarbonize its operations as it seeks to become carbon neutral by 2030.

In a statement, the Panama Canal Authority (ACP) said last year, the waterway already contributed to a reduction of more than 13 million tonnes of CO2 equivalent emissions by offering a shorter route for ships in comparison to the most likely alternative routes — but it noted the importance of making its own operations carbon-neutral by the end of the decade.

“We at the Panama Canal are committed to sustainability, and therefore are laying the foundation, creating the tools, and identifying the changes needed to achieve efficiencies that will allow us as an organization to reach carbon neutrality. This is a fundamental strategy for the waterway's long-term operation and sustainability,” said Panama Canal Administrator Ricaurte Vásquez Morales.

“This process will build on our long-standing efforts to minimize our environmental impact, including encouraging customers to use clean fuels and reduce their carbon footprint.”

To kick off the transition to a greener Canal, the waterway purchased four electric vehicles as part of a pilot program that will collect data to inform the migration of the Canal’s entire fleet away from fossil fuel dependence.

Part of its strategic decarbonization plan also includes tugboats and launches that use alternative fuels, the substitution of electricity production processes in favor of photovoltaic plants, the use of hydraulic energy, and ensuring that all facilities and infrastructure projects are environmentally responsible and sustainable.  

Sustainability transition since 2013

The Panama Canal — which is one of the world's busiest shipping routes  — said it first began tracking its carbon footprint in 2013 to align its operations with the global objectives of reducing emissions to mitigate and adapt to climate change.

In 2017, the Canal launched an ‘Emissions Calculator’ that allows shipping lines to measure their greenhouse gas (GHG) emissions per route and helps the Canal analyze emissions produced by its own day-to-day operations.

To reduce its own impact, the Panama Canal has also taken steps to find ways to maximize its operational, and thus environmental efficiencies. 

Transshipment procedures, for example, are also done through a ‘Maritime Single Window (VUMPA)’ to bolster the efficiency and carbon footprint of transshipment procedures by streamlining logistics paperwork for international customers passing through the country, saving up to 3,260 hours and over 300,000 paper forms each year.

It said as part of the new national initiative, the Canal will also develop an annual greenhouse gas inventory, as well as an action plan with measurable targets to reduce emissions.

ACP noted that Panama Canal has contributed to Panama's ranking as one of only three carbon negative countries in the world.

 
One of the Canal’s programs called “Green Connection Environmental Recognition Programme” also incentivizes customers who demonstrate environmental-friendly operations including the use of low-carbon fuels and environmentally conscious routes.

As an enhancement to this program, the Canal is currently analyzing taking into account in its dynamic pricing strategy the vessels’ technology and its carbon footprint, which makes it more efficient during transit.