BLUE ACTION NET-ZERO ALLIANCE (Carbon Inset Program) | SERVICES

Solutions

- The EACs traded with customers under the program contain environmental attributes (including GHG emission reduction data quantified in units of t-CO2e being allocated to the EACs buyers and details of the relevant low emission voyage) of specific low-carbon voyages undertaken by the MOL Group-operated fleet.

- Actual shippers and NVOCCs that have been allocated EACs can reflect their activities for Scope 3 reduction through marine transportation services in their sustainability reports, etc., based on the description in the EACs.

- EACs are traded on a book-and-claim model. This allows for flexible trading depending on customers’ Scope 3 reduction targets and budget, regardless of whether there are physical ties between the customers and the low-emission voyages.

- The MOL Group will use the proceeds from the sale of EACs to procure alternative fuels and replace the fossil fuel used for voyages with alternative fuels.

MOL’s carbon inset business journey began with "net zero".
In February 2023, MOL conducted a joint project called "Net Zero Voyage" with Methanex Corporation, the world's largest methanol producer and supplier and a strategic partner of MOL. During the 18-day trans-Atlantic voyage, ISCC-certified bio-methanol, produced from renewable natural gas derived from livestock manure, was used as marine fuel. According to the Proof of Sustainability issued by ISCC, this bio-methanol had a negative carbon intensity (CO2 emissions per energy consumption) under GHG project accounting. For the issuance of the EAC mentioned later, the carbon intensity of this bio-methanol was considered zero under GHG inventory accounting.

In February 2024, MOL made the environmental attributes of the "Net Zero Voyage" tradable as EACs on a platform built in collaboration with the Dutch startup 123Carbon B.V. This enabled MOL to allocate the low-emission profile of "Net Zero Voyage" as EACs to customers considering Scope 3 reductions from marine transportation services. MOL is the first APAC based carrier to issue EACs on the 123Carbon platform.

The Book and Claim Community is a community created in 2023 to connect, support, and catalyze efforts across numerous stakeholders towards the development of a unified book and claim chain of custody framework for transport decarbonization.

Application of a book and claim chain of custody approach to the characteristics of a transportation service is still relatively new. It is mentioned in the "Voluntary Market Based Measures Framework for Logistics Emissions Accounting and Reporting" that open discussions between industry partners, together with implementation in the market, will lead to changes as the framework’s strengths and weaknesses are revealed in practice. The Book and Claim Community is one place where such discussions are taken place. MOL is the first and only Asian company joining the board of the community.

In February 2025, MOL launched "BLUE ACTION NET-ZERO ALLIANCE". With the launch of this program, MOL had established procedures to ensure that operations can be carried out reliably, from performing low-emission voyages using alternative fuels in the fleet operated by MOL to the issuance and allocation of EACs to customers. In addition, for the EACs issued in the Pilot Project, MOL executed transactions with three major NVOCC companies: NIPPON EXPRESS HOLDINGS, INC., C.H. Robinson Worldwide, Inc. , and MOL Logistics Co., Ltd.