The event brought together leading experts and practitioners to address the urgent need for sustainability in global trade and maritime logistics—especially in light of the European Union’s evolving climate regulations.
Distinguished Speakers
- Mr. Martin Klose – Chief Delegate, AHK Sri Lanka
- Dr. Ravi A. Fernando – Executive in Residence, INSEAD Sustainable Business Initiative
- Ms. Pyumi Sumanasekara – Partner, ESG/Sustainability & Global Assurance, KPMG Sri Lanka
- Ms. Fahima Mohideen – Manager, Global Assurance Division, KPMG Sri Lanka
- Ms. Callishia Fernando – Senior Manager, Global Assurance Division, KPMG Sri Lanka
Key Insights & Highlights
The European Green Deal
It ensures zero emissions by 2050, making Europe the first climate-neutral continent in the world. For the Logistics & Maritime Sector this translates into:
- The inclusion of maritime transport in the EU Emissions Trading System (EU ETS), requiring ships to monitor and pay for emissions.
- New fuel rules under FuelEU Maritime, gradually reducing the GHG intensity of marine fuels by 80% by 2050.
- Broader ESG standards under frameworks like the Supply Chain Due Diligence Act, which German firms apply to global suppliers.
In order to meet the requirements, there is urgent need for Sri Lankan companies to measure the carbon footprint of their companies and exports.
Opportunities for Sri Lanka
Meeting the requirements of the European Green and going far beyond offers opportunities for Sri Lanka to position itself as a Green economic hub.
Sri Lanka with its significant geostrategic position can position itself as a sustainable transshipment hub by investing in low emission power technologies and energy efficient logistic systems. Germany could act as a technology partner here, for example.
Moreover, the integration of Artificial Intelligence (AI) and automation technology can boost efficiency and reduce emissions in logistics. Sri Lanka has a lot of digital talents and could support a similar transformation in warehousing.
There are also supply chain advances. German clients now assess global partners on ESG performance. If Sri Lankan companies embrace sustainability from very early on, they could gain a significant advantage over less proactive regional competitors.
Embracing sustainability practices goes beyond the Logistics & Maritime Sector
A sustainable supply chain starts at the manufacturers, includes the port operations and encompasses the logistics and maritime sector.
Key German and EU Regulations
- EUDR (European Deforestation Regulation): Companies that place the in-scope commodities on the EU market, or exports from it, must ensure that these:
- Are not produced on land that was deforested or degraded since December 31, 2020
- Must be produced in accordance with the laws in the country of production, including human or indigenous people’s rights.
Currently, there are seven commodities (cocoa, coffee, soy, palm oil, wood, rubber, cattle) and possible derivatives (e.g. chocolate, cosmetics) affected
- SCDDA (German Supply Chain Due Diligence Act): The law regulates the responsibility of German enterprises to identify, assess, and prioritize the risks in their supply chains. These obligations apply to their own business area, the actions of their contracting partners and the actions of other (indirect) suppliers.
- CSDDD (Corporate Social Due Diligence Directive): Corporations must enforce global due diligence in supply chains across their operations, subsidiaries and value chains. The new Omnibus Package simplifies the complexity of the regulation. It still requires direct suppliers to apply the rules. However, other subcontractors and suppliers further down the supply chain are not any longer directly affected.
- CBAM (Carbon Border Adjustment Mechanism): The EU aims to put a fair price on the carbon emitted during the production of carbon intensive goods that are entering the EU. It should prevent companies based in the EU to move carbon-intensive production abroad to countries where less stringent climate policies are in place than in the EU, or to replace EU products by more carbon-intensive imports.
- The CBAM applies to companies that export products from the sectors of Electricity, Hydrogen, Aluminum, Iron and Steel, Fertilizer and Cement to the EU (European Union). Moreover, the products must be identified by a CN code that covers EU CBAM. Importers of goods have to report greenhouse gas emissions (GHG) embedded in their imports.
AHK Sri Lanka is part of the German Chamber Network supported by the Federal Ministry for Economic Affairs and Climate Action (BMWK). With 150 locations in 93 countries around the world, the members of the German Chamber Network (AHKs) offer their experience, connections, and services to German and companies of the respective partner countries. AHKs are located in all countries of particular importance to German companies and are closely connected to the Chambers of Industry and Commerce (IHKs) in Germany.
