As the maritime industry looks for ways to reduce CO2 emissions and reach its ultimate goal of net zero, carbon insetting is emerging as a promising strategy to tackle these challenges. While some shipping companies have already pioneered carbon insetting, others still perceive it as uncharted territory.
Jeroen van Heiningen presenting at the 2023 Captain’s Table competition. Courtesy of 123Carbon
In short, carbon insetting is a term used to describe all initiatives that reduce emissions throughout a company’s own supply chains and operations. Such initiatives are directly related to the company’s business and may span from transitioning to alternative fuels to improving energy efficiency and collaborating with other stakeholders within the supply chain.
Earlier this year, a consortium of maritime organizations introduced ‘the world’s first’ carbon insetting program for zero-emission shipping. Initiated by Dutch shipping companies Future Proof Shipping (FPS) and Zero Emission Services (ZES), as well as 123Carbon, the one-stop platform for carbon insetting in multimodal transport, the program aims to develop, test, and validate methodologies for ships powered by swappable batteries and hydrogen, using the Smart Freight Centre’s Book and Claim framework, which separates emission reductions from the transportation of goods.
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Posted: 3 months ago
Some maritime companies including Stolt Tankers, Unifeeder, Stena Line, Mitsui O.S.K. Lines (MOL), Norden, HMM and others recently decided to voluntarily incorporate carbon insetting into their sustainability agendas. However, carbon insetting still lacks guidelines and regulatory framework at both the EU and global level.
Offshore Energy had the pleasure of speaking with Jeroen van Heiningen, Founder and Managing Director of 123Carbon, about the potential of carbon insetting and its applications in the shipping sector.
- OE: What is carbon insetting from the maritime industry’s perspective? How can maritime companies lower Scope 3 (and Scope 1) emissions with the help of carbon insetting?
van Heiningen: Carbon insetting is a process by which operators within the transportation sector, who wish to decarbonize their fleet, can share the cost of carbon reduction projects with supply chain partners that are willing to pay the green premium. These partners can include direct customers or the broader market. Alternatively, operators can pay for their decarbonized transport through verified carbon claims.
Based on a globally accepted book-and-claim methodology, and supported by low-carbon reduction measures, platforms such as 123Carbon enable organizations to verify, register and manage their low-carbon activities via a safe and fully encrypted process. Through the use of blockchain-backed environmental attribute certificates (EACs), 123Carbon can provide complete transparency regarding the sustainability credentials of a specific low-carbon project.
- OE: What are the benefits of carbon insetting compared to carbon offsetting?
van Heiningen: Unlike offsets, insets represent concrete reductions realised within the supply chain, which can be allocated to freight forwarders and shippers based on a globally developed book and claim methodology. This flexible allocation allows for an acceleration of low carbon initiatives,