Mitsui O.S.K. Lines (MOL) announced that it has completed a pilot project to tokenise vessel emissions reductions from bio-methanol voyages, creating digital records using blockchain technology that can then be allocated to customers for offsetting purposes.
The pilot, conducted with 123Carbon in the Netherlands, aimed to tokenise the GHG emission reductions from a ‘Net Zero Voyage’ conducted jointly by MOL and Methanex Corporation in February 2023.
The process then allows MOL to allocate the GHG emission reductions from the use of bio-methanol as a fuel to customers to reduce their own Scope 3 emissions from maritime transport, based on the Market Based Measures Accounting Framework published by the Smart Freight Centre.
As part of the project, MOL underwent third-party verification of its GHG emission reduction-related documents to confirm their accuracy and its ownership of the associated Scope 3 GHG reductions from the use of bio-methanol. The digital certificates issued after verification are then stored on the blockchain, recording the transaction history.
Customers that have been allocated tokens by MOL can then claim the GHG emission reductions and have access to the reduction-related data on the 123Carbon platform, including vessel names, reduction methods, bunker date of low emission fuel, emission factors used in reduction calculations, and the name of the third-party verifier.
“This initiative is categorised to be carbon insetting, which promotes decarbonisation within the supply chain,” said Christoph Wolff, Chief Executive Officer of Smart Freight Centre.
“The Market Based Measures Accounting Framework provides a standard framework for companies to rely on when expanding their insetting programmes, in response to growing demand for insetting in the transport sector, including shipping.”
“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.”
