Carbon Insetting

In February 2024, MOL completed an insetting pilot with 123Carbon B.V. by issuing the digital environmental attribute certificates (EACs) of a voyage using biomethanol as a zero-emission fuel. This allows MOL to allocate the environmental attribute of the voyage to customers seeking to reduce their Scope 3 reductions from maritime transport services through the platform . MOL is the first shipping company in the APAC region to issue EACs on the 123Carbon’ platform. MOL are developing our carbon insetting services to further help customers achieve their Scope 3 reduction targets.

All digital EACs are issued on the platform after individually audited by independent verifiers. The verifiers provide assurance on the data, calculations, documents about mitigation actions against risks of double counting, and documents about facts related to additionality submitted by MOL regarding the realized GHG emissions reductions by MOL deploying low emission transportation services.

MOL delivers EACs through the 123Carbon’s platform. Blockchain technology is used in the platform to avoid double counting, which prevents EACs from being changed or duplicated.

Digital EACs provided by MOL through the platform have about 60 datapoints which include data about the relevant low emission transportation service, the relevant alternative fuel used for the service, emission calculations and the relevant verifiers.

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.