MOL and 123Carbon complete biomethanol-based insetting pilot

Mitsui O.S.K. Lines (MOL) on Thursday (15 February) announced that it has completed an insetting pilot with climate tech firm 123Carbon B.V. by tokenising the GHG emission reductions from the net-zero voyage which was conducted jointly with Methanex Corporation in February 2023. 

This allowed MOL to allocate the GHG emission reductions from the use of biomethanol as a bunker 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, a global non-profit organisation for climate action in the freight sector.

“MOL will build on this foundation to develop services to further help customers achieve their Scope 3 reduction targets,” the firm said in a statement. 

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 biomethanol as a bunker fuel. 

“The digital certificates issued after verification are managed by blockchain technology, recording the transaction history,” MOL added.

“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.”

“These mechanisms, which 123Carbon provides the tools to ensure the reliability and transparency of the GHG emission reductions allocated to customers.”

Christoph Wolff, Chief Executive Officer of Smart Freight Centre, said: “This initiative is categorised 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.”

Photo credit: Mitsui O.S.K. Lines
Published: 16 February, 2024