Global Shipping Business Network (GSBN), a consortium enabling paperless, accessible and sustainable global trade, has completed a pilot with China-based shipping company COSCO Shipping to issue ‘traceable and verifiable’ green certificates powered by blockchain technology.
As global shippers step up to their corporate responsibility of safeguarding the environment, leading corporations have started to pay a green premium on biofuel usage in exchange for greenhouse gas (GHG) reduction claims or green certificates.
To increase traceability and verifiability, COSCO has partnered with GSBN, an established neutral party in the shipping industry launched in 2021, to launch its Hi ECO blockchain-based shipping product.
In December 203, the shipping company presented the first green shipping certificate to Volvo’s Asia Pacific headquarters for the use of COSCO’s Hi ECO.
As explained, GSBN leverages its blockchain-enabled network to establish linkage between the proof of sustainability (PoS) certificate, which documents the purchase of biofuel by the carrier, and green certificates issued to corporations. This connection guarantees that each green certificate corresponds to an actual purchase of biofuel, instilling confidence in the marketplace.
Furthermore, the technology enables easy verification through attestation, allowing stakeholders to validate the veracity of the claims. This enhances credibility and establishes trust among all participants involved in the shipping process.
The first step is to establish a connection between the PoS and the green certificate. The ultimate goal is to document the entire biofuel procurement process, from its source to its consumption, on the GSBN blockchain.
GSBN’s vision is to create a transparent and continuous chain of custody of biofuels, thereby upholding the integrity of environmental claims linked to biofuel.
“Measuring the impact of decarbonisation requires access to trusted data. The completion of this pilot with COSCO is a positive step towards ensuring that green claims are traceable and verifiable. In doing so, we can create a virtuous cycle in which the value of green shipping can be accounted for to justify investment and further expand green shipping over time. We look forward to working with our members and partners to deploy even more solutions to assist their decarbonisation transition,” Bertrand Chen , CEO at GSBN, said.
“The Hi ECO Certificate complements our commitment to reducing emissions throughout the entire Well to WAKE cycle, and underpins the value we aim to provide our customers through green shipping. This pioneering solution has been further guaranteed to be fair and equitable through GSBN which serves as a neutral party and through its blockchain-enabled platform, provides our customers assurance of immutability and traceability,” Tang Wei , Strategic Customer Developing & Maintaining Department Manager at COSCO Shipping, commented.