Chevron partners with 123Carbon on marine carbon-insetting pilot
123Carbon, an independent blockchain-based carbon-insetting platform for the transport sector, recently announced that it has completed an insetting pilot with Chevron by tokenizing the emissions reductions associated with the bunkering of marine biofuel for a Chevron-owned vessel in Singapore.
This successful pilot allows for further introduction of carbon-insetting capabilities to other third-party customers.
Carbon insetting has the potential to allow fuel providers and carriers to allocate the emission-reduction benefits and the associated costs of low carbon-intensity fuels across the value chain to freight forwarders and shippers.
According to 123Carbon, carbon insetting is a rapidly growing new emissions instrument for shipping and other modalities like air and road transport to create incentives for emission reductions.
123Carbon provides the blockchain-based platform to create the inset and enables customers to create verified and immutable blockchain tokens for CO2-equivalent reductions across their supply chain.
This can enable carriers to allocate carbon reductions and associated costs to customers without having to go through a robust insetting process themselves.
The company also partners with AllChiefs and Bureau Veritas to support clients with implementation services and external assurance.
“We are excited to work together with Chevron to help it make a real difference in reducing carbon intensity in its supply chains,” said Jeroen van Heiningen, managing director at 123Carbon. “Carbon insetting is a major driver in accelerating the journey to global net zero within transportation, as well as enabling companies and regulators to monitor the verifiable impact of these carbon-reduction efforts. Our work with Chevron shows that transparent, high-quality innovation will play a critical role in the marine sector, ultimately driving meaningful emissions reductions.”
Donny Suhartono, the president of Chevron Product Supply and Trading, added, “Through this pilot partnership, Chevron continues to expand our capabilities to meet customer needs and support the acceleration of lower-carbon transport.”
Benjamin Lechaptois, the sustainability strategy leader for Bureau Veritas’ marine and offshore business, said, “We are proud to partner with 123Carbon and Chevron on this pioneering project, which demonstrates that carbon insetting can already play a significant role in enabling companies to reduce CO2-equivalent emissions across their supply chains today. Carbon insetting is a key component of the decarbonized supply chains of today and tomorrow, helping to decarbonize the transportation sector globally. Traceability and validation of the emissions-reductions benefits are essential to achieve this vision, and at Bureau Veritas we are proud to contribute our expertise by independently verifying the insetting process and ensuring that claims can be trusted. This provides companies and their end customers with genuine transparency over carbon reductions, supported by reliable verification.”
The generated insets for Chevron were issued based on the book-and-claim methodology developed by Smart Freight Centre, a transport-focused nongovernmental organization responsible for developing global guidance for carbon insetting.