Mitsui O.S.K. Lines, Ltd. (MOL) has successfully completed an insetting pilot with 123Carbon B.V., involving the tokenization of greenhouse gas (GHG) emission reductions.
What is the tokenization of GHG emissions?
Tokenization involves representing these emission reductions as digital tokens on a blockchain. Through this initiative, MOL is now able to allocate these GHG emission reductions resulting from the use of biomethanol as fuel to its customers.
According to MOL, this allocation aligns with Scope 3 reductions, which refers to indirect emissions associated with the supply chain and transportation services.
MOL’s tokenization of emissions involved the GHG emission reductions from the Net Zero Voyage which was conducted jointly with Methanex Corporation in February 2023.
To remind, the Cajun Sun, operated by Methanex’s subsidiary Waterfront Shipping and chartered from MOL, departed from Geismar, U.S. on January 17 2023 and arrived in Antwerp, Belgium on February 4.
By blending ISCC-certified bio-methanol that has negative carbon intensity with natural gas-based methanol, net-zero greenhouse gas emissions on a lifecycle basis were achieved for the 18-day trans-Atlantic voyage.
Additionally, the allocation is based on the Market Based Measures Accounting Framework by the Smart Freight Centre. MOL aims to use this foundation to develop services that assist customers in achieving their Scope 3 reduction targets.
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.
… explained Christoph Wolff, Chief Executive Officer of Smart Freight Centre
MOL collaborated with Methanex and underwent third-party verification. As informed, digital certificates issued after verification are managed using blockchain technology to record transaction history.
Furthermore, customers who receive allocated tokens can claim GHG emission reductions and access related data through the platform provided by 123Carbon.
