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The Panama Canal said ships using the waterway have contributed to carbon dioxide (CO2) reduction last year compared to using other alternative routes.
It noted a CO2 reduction of 16 million tonnes of equivalent emissions in 2021 or 3 million tonnes more than in 2020.
This carbon dioxide reduction is equivalent to emissions from 3.2 million passenger vehicles driven in a year, or the carbon sequestered by 248 million tree seedlings grown for 10 years.
At least 2.3% of the world's maritime trade is transported through the Panama Canal annually.
"Last year, we launched the CO2 Emissions Dashboard to help our customers better track their emissions and understand the benefits provided by taking the shortest route, creating a more sustainable supply chain," said Ricaurte Vasquez, Panama Canal administrator.
Panama Canal's CO2 Emissions Savings Dashboard tracks the total carbon dioxide emissions that ships save by using the Panama Canal compared to alternative routes.
The Panama Canal Authority said in a statement that containerships led the way in emissions savings of 5.2 million tonnes of CO2, followed by dry bulk carriers (2.5mt), chemical tankers (1.77mt), and liquefied petroleum gas (LPG) carriers (1.2mt).
It added that Maersk (933,308 tonnes of CO2) registered the highest CO2 emission savings by choosing the canal route throughout 2021, followed by Mediterranean Shipping Company (MSC) (909,264 tonnes of CO2), CMA CGM (503,960 tonnes of CO2), Hapag-Lloyd (478,764 tonnes of CO2), and Trafigura Beheer (448,940 tonnes of CO2).
Last year, Panama Canal announced its plans to become carbon neutral by 2030 with a US$2.4 billion investment which includes purchasing electric vehicles and hybrid tugboats, and modernising its equipment and infrastructure, among others.
