Japanese shipping company Mitsui O.S.K. Lines (MOL) has launched BLUE ACTION NET-ZERO ALLIANCE, a program to help companies reduce Scope 3 greenhouse gas (GHG) emissions by continually offering and enhancing low-emission marine transportation services using alternative fuels.
The program aims to be a collaboration with marine transportation-related stakeholders to reduce Scope 3 emissions for shippers and Non Vessel Operating Common Carriers–carriers that use other shipping companies for transport between ports, or to the final inland destination. It allows for a book-and-claim model by which shippers pay for low-emission fuels and receive credits toward their Scope 3 emissions–those related to their supply chain. Scope 3 can account for up to 75% of emissions.
In February 2024, MOL became the first shipping company in the Asia-Pacific region to issue the environmental attributes certificates (EACs) of low-emission voyages using alternative fuels tradable on a platform built in collaboration with the Dutch startup 123Carbon B.V. EACs can include such instruments as carbon credits, Sustainable Aviation Fuel, Renewable Energy Certificates, Scope 3 Impact Units.
Since then, MOL said it has established a system that can ensure operations from implementing low-emission voyages using alternative fuels in the MOL Group-operated fleet, to issuing EACs and allocating them to customers. In addition, the MOL executed transactions with three major NVOCCs for the issued EACs: NIPPON EXPRESS HOLDINGS, INC., C.H. Robinson Worldwide, Inc. and MOL Logistics Co., Ltd. These factors led to the launch of this program.
[How to accelerate the achievement of net-zero marine transportation services through this program]
- The EACs traded with customers under the program contain environmental attributes of specific low-emission voyages undertaken by the MOL Group-operated fleet. This includes GHG emission reduction data quantified in units of tons of CO2 equivalent being allocated to the EACs buyers, and details of the relevant low-emission voyage.
- 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 or not 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.
