Japan’s Mitsui O.S.K. Lines (MOL) has completed an insetting pilot with 123Carbon by tokenising the GHG emission reductions from the net zero voyage fuelled by bio-methanol.
This allows MOL to allocate the GHG emission reductions from the use of bio-methanol to customers considering Scope 3 reductions from maritime transport services, based on the Market-Based Measures Accounting Framework published by the Smart Freight Centre, a global non-profit organization for climate action in the freight sector.
The first such net zero voyage was completed by the Cajun Sun which departed from Geismar in the US on January 17 last year and arrived in Antwerp, Belgium on February 4, 2023.
Customers that have been allocated tokens can claim the GHG emission reductions and have access to the reduction-related data like vessel names, reduction methods, bunker date of low emission fuel, emission factors used in reduction calculations, and name of third-party verifier on the platform.
These mechanisms, which 123Carbon provides the tools to ensure the reliability and transparency of the GHG emission reductions allocated to customers.
“This initiative is categorized to be carbon insetting which promotes decarbonization within the supply chain. The Market-Based Measures Accounting Framework provides a standard framework for companies to rely on when expanding their insetting programs, in response to growing demand for insetting in the transport sector, including shipping,” said Christoph Wolff, CEO of Smart Freight Centre.
MOL stated that its carbon insetting initiative is a significant step forward towards achieving the net zero target in the shipping industry because it has one of the world’s largest fleets.
