The shipping industry accounts for about 2.5% of global greenhouse gas (GHG) emissions. To reduce those emissions, the use of low-emission alternative fuels is considered essential, yet their high cost has long been a major barrier. In response, Mitsui O.S.K. Lines (MOL) has begun creating a new system that fosters partnerships between MOL and cargo owners, both of whom share the same challenges as key players in emission reduction in the shipping industry. With an approach that breaks away from conventional frameworks, MOL is moving forward to solve this issue. This time, we spoke with two project leaders who have driven the initiative since its inception, exploring their objectives and vision for the future.
MOL's newly launched BLUE ACTION NET-ZERO ALLIANCE is a "Carbon Inset and Book and Claim Program" that contributes to reducing the supply chain emissions (Scope 3) of actual shippers and NVOCCs (Non Vessel Operating Common Carrier = forwarders specializing in maritime transport). It is an initiative in which shipping companies and actual shippers/NVOCCs, as direct participants in international shipping, work together through partnerships to advance decarbonization of international shipping. First, let's look back on why MOL decided to embark on this program.
The story begins in 2022, when MOL acquired a partial stake in Waterfront Shipping, a subsidiary of Methanex Corporation, the world's largest methanol producer.
Aki Chigira (currently Chief Regional Representative of Hong Kong SAR), who was in charge of the M&A, recalls that time: "From the negotiation stage of the acquisition, we already had the desire to deepen our collaboration with Methanex- the world's largest methanol producer- using this deal as a springboard. Around that time, the shipping industry had just begun to pay attention to alternative fuels that could replace the heavy fuel oil traditionally used. Naturally, it was a logical step for us to begin exploring the use of methanol, a promising alternative fuel for our vessels."
Towards an eco-friendly voyage. By using low-carbon methanol derived from bio-based materials and renewable energy sources as fuel, GHG emissions during vessel operation are reduced（Source：MOL Press Release）
However, reality proved harsh. Low-carbon methanol, with its reduced GHG emissions, was expensive, and the cost barrier proved far too high.
"We visited sales divisions within the company, and at times even accompanied them to meet cargo owners to promote the utilization of methanol. But in the end, we could never reconcile the cost issue," Chigira continues.
"Is it realistic to expect a single cargo owner to bear all the additional costs generated by using alternative fuel on one vessel?"
"At this rate, the adoption of alternative fuels will never progress."
Amid the growing sense of stagnation in these discussions, Chigira began to think, "What if these additional costs could be shared among multiple companies? Isn't that precisely what advancing decarbonization across society entails?"
Around that time, the term "book and claim system", which was starting to gain attention within the industry, became a major clue. This is a chain-of-custody model that allows the environmental attributes originally tied to a physical product or service to be separated and traded independently. By issuing them as certificates, purchasers can economically support the initiative and claim its benefits, even if they cannot actually use those products or services.
"If we could translate this concept into a concrete scheme, we might be able to reduce the burden on each company and finally make progress. That's when I reached out to Miyata, who was on the same team, and the two of us decided to formally take on this project."
That said, at the time, there was still very little information available on the "book and claim system." Even a Google search yielded only rough explanations. There were also concerns about ensuring transparency and the risk of double-counting GHG reductions, making its feasibility highly uncertain.
"In July 2023, Chigira asked me to look into 123Carbon's initiatives as a kind of 'summer research project'," recalls Dai Miyata of the Corporate Sustainability Division, reflecting on how he first encountered the project.
The turning point came with a piece of industry news: a report that the Dutch startup 123Carbon B.V. (hereafter 123Carbon) had begun offering a platform for certificate trading based on the book and claim system. As Miyata dug deeper, he discovered that the international NPO Smart Freight Centre (SFC) served as the rule-maker responsible for ensuring the proper operation of the book and claim system.
Miyata immediately obtained SFC's guidelines and contacted 123Carbon, saying he wanted to arrange a meeting. He realized that this mechanism might also be applicable to the "Net Zero Voyage" (a voyage or initiative aiming for net-zero greenhouse gas emissions) trial using bio-methanol fuel MOL conducted six months earlier, and he prepared the idea to discuss it during their first meeting in August 2023.
When they finally spoke, it quickly became clear that 123Carbon was far more than just a digital tool provider. Although they did not have a background in shipping, they were platform operators with a deep understanding of the industry's unique commercial practices and complex contract structures. When the team consulted them, 123Carbon responded with precise, well-targeted answers that showed clear insight. The reliability of their responses convinced the MOL team that they could become a trusted partner. As the meetings continued, it also became evident that 123Carbon's leadership shared a strong desire to "advance decarbonization through the book and claim system ". From there, the Carbon Inset and Book and Claim Program began to take shape in earnest.
Incidentally, it was around this time that MOL began using the term "carbon inset". The phrase originated from 123Carbon, which used it to describe efforts within the logistics industry to reduce GHG emissions using the book and claim system.
The mechanism of the "Maritime Transport Carbon Inset and Book and Claim Program" is simple yet innovative. MOL sails using alternative fuels such as bio-methanol, and a third-party organization verifies the GHG reduction effect. They are issued and sold as "digital certificates", and the proceeds are used to purchase the next batch of alternative fuel. This cycle accelerates decarbonization in shipping.
The mechanism of the ”Carbon Inset Program for Ocean Transport”. Implementing low-carbon voyages is the fundamental prerequisite.（Source：MOL Solutions website）
The Net Zero Voyage was completed in February 2023. Under the guidelines, certificates must be issued within one year of the voyage. Therefore, aiming for the February 2024 deadline, we built a platform with 123Carbon, established a framework for certificate trading, and began sales activities.
"At first, we had no idea whom we could sell the certificates to. Even so, if we succeeded, we could use those funds to purchase the next low-carbon fuel and keep taking on new challenges. Believing that, we worked hard," Miyata recalls.
The initial objective was simple: to introduce methanol fuel on our own vessels and create a mechanism for the additional costs to be absorbed within the supply chain. However, as the initiative progressed, the thinking shifted to, "Might this mechanism be applicable not only to methanol but also to other alternative fuels such as bio-LNG and biodiesel?" Chigira recounts the process at the time.
"As we advanced the development of the system, we reset the goal to 'creating a mechanism that enables the entire MOL Group to make use of a wide range of alternative fuels.'"
Because the "book and claim system" itself was still a concept with low public recognition, the emphasis was on credibility during the subsequent company-wide rollout: "third-party verification of reduction results", "ensuring transparency by issuing certificates that contain extensive data", and "eliminating the risk of double counting by strictly operating in accordance with the guidelines of an international NPO". These three points were meticulously explained throughout the process.
Around the same time, MOL became the first Asian shipping company to join the global cross-industry organization promoting decarbonization, the "Book and Claim Community." Every month, the company participated in European meetings held late at night Japan time, using the international standards and insights gained there to refine its service. Then, in February 2025, the program was officially launched under the name "BLUE ACTION NET-ZERO ALLIANCE."
The first customers were three major NVOCCs. Nippon Express, which had had fewer points of contact with MOL since the spin-off of its container shipping business, rejoined hands in the new field of carbon inset. Having already achieved results with carbon insets in air transport, the company's expansion of efforts into the maritime sector is expected to further boost momentum across the industry. C.H. Robinson Worldwide, headquartered in the United States, is one of the world's leading third-party logistics (3PL) providers and a pioneer in this field, even participating in the formulation of SFC guidelines. Having provided knowledge since the early stages of the project, the formal contract gave MOL strong confidence that "our initiative was recognized by a frontrunner". Meanwhile, MOL Logistics, a group company, proposed collaboration aimed at strengthening synergy. This brought together a structure in which the entire MOL Group could unite to advance the project.
However, understanding and adoption among Japanese shippers is still a work in progress. For many companies, reducing logistics-related Scope 3 emissions tends to focus on "measures that can be balanced with cost reduction", such as modal shifts and improving loading efficiency. Investment in alternative fuels remains largely viewed as a "future option". Compared to Europe, which has already moved on to the next phase, Japan is still at an early, small-scale starting point. The next challenge is "how to scale this up".
In 2025, the global trend toward decarbonization has shown signs of wavering. The rise of the Trump administration in the United States symbolizes this shift. As international environmental regulations and sustainability investments temporarily lose momentum, it has become clear that the path to decarbonization is far from smooth. However, MOL's goal of achieving "net zero by 2050" remains unshaken. "Once a movement begins, it will never stop." These words, often repeated by the company's leadership, embody a firm determination to fulfill our responsibility to the future even in the face of headwinds.
Of course, the book and claim system alone cannot solve everything. Decarbonizing maritime transport is not that simple; true progress can only be achieved by combining multiple approaches. First and foremost, "upstream investment" is essential to ensure a stable fuel supply. The construction of plants and development of supply infrastructure for next-generation fuels such as ammonia and e-fuels form the very foundation that will sustain the future of shipping. In addition, "building vessels compatible with the new fuels" is indispensable. Engines and equipment differ greatly depending on the type of fuel, and a misstep in selection could undermine long-term competitiveness.
Ammonia-fueled ship (concept image) (Source：MOL Website)
"What we are doing is only one part of the broader efforts toward achieving decarbonization. The fuel procurement department, the ship design and construction department, and our colleagues in sales who engage directly with customers- only through the collaboration of all these elements does this system truly gain meaning," says Miyata, who has spearheaded the project.
That said, when it comes to alternative fuels, it is important for shipping companies and cargo owners to work together as users to support suppliers producing costly low-carbon fuels. From that perspective, the book and claim system- which enables companies sharing the same values to unite and take the lead in decarbonization regardless of physical service connections- is undoubtedly a promising option during this transition period. Even without the backing of the government through regulations or subsidies, first movers committed to decarbonization can form partnerships of their own will and continue to move forward. MOL believes that such private-sector-driven initiatives carry profound significance.
Efforts by Japanese companies to reduce Scope 3 emissions have only just begun. The depth of engagement and the level of priority vary greatly depending on the type of business, and progress is far from uniform. MOL believes that, as a provider of essential social infrastructure, we should continue offering maritime transport services even to companies that have not yet fully committed to Scope 3 reduction. However, it is also a fact that effective decarbonization cannot be achieved without shifting from heavy fuel oil to alternative fuels. Against this backdrop, MOL's stance is to proactively form partnerships with companies that share its values toward decarbonization and to advance maritime decarbonization together. The "BLUE ACTION NET-ZERO ALLIANCE" is precisely the framework established to bring such collaboration to life.
（Source: MOL Press Release）
If this mechanism can be scaled sufficiently, MOL will be able to transcend its role as a mere transport service provider and establish a presence in areas such as alternative fuel procurement and upstream investment. This, in turn, will attract new capital and partner companies, contributing to strengthening the competitiveness of Japan's entire shipping industry.
At the same time, the concept of paying for efforts to reduce GHG emissions has not yet fully taken root in society. Expanding awareness and building trust will still require considerable time and effort. Nevertheless, MOL continues to pursue this challenge, firmly believing that this new system of certificate trading can become an effective means of promoting the adoption of alternative fuels and advancing decarbonization.