Mitsui O.S.K. Lines, Ltd. (MOL) has joined forces with climate tech firm 123Carbon B.V. to pioneer a revolutionary insetting pilot, marking a significant stride in the maritime industry’s commitment to reducing greenhouse gas (GHG) emissions.
Breaking New Ground in Scope 3 Reduction
MOL successfully completed an insetting pilot with 123Carbon by tokenizing GHG emission reductions from the Net Zero Voyage, a collaborative effort with Methanex Corporation in February 2023. This innovative approach enables MOL to allocate GHG emission reductions resulting from the use of biomethanol as fuel to customers, aligning with Scope 3 reductions for maritime transport services.
Market-Based Measures Accounting Framework
To ensure accuracy and transparency, MOL underwent third-party verification of GHG emission reduction-related documents, confirming ownership of associated Scope 3 GHG reductions. Blockchain technology manages the digital certificates issued after verification, recording the transaction history. Customers receiving allocated tokens can claim GHG emission reductions and access related data on the platform, including vessel names, reduction methods, bunker date of low emission fuel, emission factors used in calculations, and the name of the third-party verifier.
Christoph Wolff Commends Carbon Insetting Initiative
Christoph Wolff, Chief Executive Officer of Smart Freight Centre, hailed this initiative as a crucial step towards decarbonization within the supply chain. The Market-Based Measures Accounting Framework, providing a standard framework for companies, empowers them to expand insetting programs. Wolff acknowledged MOL’s commitment, especially given its status as one of the world’s largest fleet operators, as a significant move towards achieving net-zero targets in the shipping industry.
MOL’s Environmental Vision in Action
The MOL group, aligning with its “MOL Group Environmental Vision 2.2,” emphasizes building business models that enable net-zero emissions. This insetting initiative serves as a concrete example of their commitment. MOL remains dedicated to collaborating with stakeholders, including customers, to meet evolving decarbonization needs and accelerate the realization of net-zero targets.
About 123Carbon
123Carbon, headquartered in the Netherlands, operates globally, providing an independent, blockchain-based carbon insetting platform for multimodal transport. Their platform is built on globally accepted book and claim methodologies.
Future Endeavors
This groundbreaking collaboration positions MOL as a leader in adopting sustainable practices within the maritime industry. As the world grapples with the challenges of climate change, MOL’s commitment to developing services that assist customers in achieving their Scope 3 reduction targets sets a noteworthy precedent.
