On Thursday, in a significant development, A.P. Moller-Maersk, the world’s largest container shipper, said it will team up with industry majors to set up a research center in Denmark with the aim of reducing carbon emissions in the shipping industry.

Denmark’s Maersk, which said it wants to be carbon-neutral by 2050, said the research center would combine knowledge from academia, industry, and regulators towards “decarbonizing” the industry by developing carbon-neutral fuel and technologies.

Incidentally, the shipping industry which carries around 80% of global trade, accounts for nearly 3% of global carbon emissions. In 2019, the it pledged to have ships and marine fuels with zero carbon emissions ready by 2030.

The research center will be funded by Maersk’s majority owner, the A.P. Moller Foundation, which has already donated $60.36 million (400 million Danish crowns) towards building the research hub which will initially employ 100 people, said Maersk.

“With this donation, The A. P. Moller Foundation wishes to support the efforts to solve the climate issue in global shipping,” said Ane Uggla, chairman of the board’s foundation.

The center, which will be an independent nonprofit organization, is founded by shipping firms Maersk and NYK Lines along with Mitsubishi Heavy Industries, Siemens Energy, ABS, MAN Energy Solutions, and Cargill Inc.