MOL partners with climate-tech firm 123Carbon to complete insetting pilot

The image above is a conceptual diagram of scope 3 reduction allocation, illustrating an example of a transaction of insetting. (Source: MOL)

The Japanese ocean-shipping company Mitsui O.S.K. Lines Ltd. announced Feb. 15 that it has completed an insetting pilot with Netherlands-based 123Carbon B.V. by tokenizing the greenhouse-gas (GHG) emission reductions from the Net Zero Voyage, which was conducted jointly with Methanex Corp. one year ago in February 2023.

This allows MOL to allocate the GHG-emission reductions from the use of biomethanol 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 documents related to GHG-emission reductions to confirm their accuracy and MOL’s ownership of the associated scope 3 GHG reductions from the use of biomethanol 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.

123Carbon provides the tools to ensure the reliability and transparency of the GHG-emission reductions allocated to customers.

“This initiative is categorized to be carbon insetting, which promotes decarbonization within the supply chain,” said Christoph Wolff, CEO of the Smart Freight Centre.

“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,” Wolff added. “MOL, which has one of the world’s largest fleets, starting its carbon-insetting initiative is a significant step forward towards achieving the net-zero target in the shipping industry.”

MOL said it will continue to partner with stakeholders, including customers, to meet their diversifying decarbonization needs and accelerate the realization of net-zero targets.