Japanese shipping company Mitsui O.S.K. Lines (MOL) has completed an insetting pilot with the Dutch company 123Carbon by tokenizing the GHG emission reductions from the net zero voyage which was conducted jointly with Canada’s methanol supplier Methanex Corporation in February 2023.
This allows MOL to allocate the GHG emission reductions from the use of bio-methanol as a fuel to customers considering Scope 3 reductions from maritime transport services, based on the Market Based Measures Accounting Framework published by the Smart Freight Centre.
MOL said it will build on this foundation to develop services to further help customers achieve their Scope 3 reduction targets.
MOL, with the cooperation of Methanex, underwent third-party verification of GHG emission reduction-related documents to confirm their accuracy and MOL’s ownership of the associated Scope 3 GHG reductions from the use of bio-methanol as a fuel.
The digital certificates issued after verification are managed by blockchain technology, recording the transaction history. Customers that have been allocated tokens can claim the GHG emission reductions and have access to the reduction-related data — vessel names, reduction methods, bunker date of low emission fuel, emission factors used in reduction calculations, name of third-party verifier, etc. — on the platform.
“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. MOL, which has one of the world’s largest fleet, starting its carbon insetting initiative is a significant step forward towards achieving the net zero target in the shipping industry,” Christoph Wolff , Chief Executive Officer of Smart Freight Centre, commented.
The initiative is said to be an example of MOL’s “Build Business Models that Enable Net Zero Emissions” action to realize Net Zero, in the “MOL Group Environmental Vision 2.2.”