MOL to offer low-emissions options to freight and NVOCC customers

In early 2024, MOL became the first shipping company in the Asia-Pacific region to issue environmental attributes certificates of low-emission voyages using alternative fuels. It has since set up a system that can issue EACs arising from using alternative fuels in the MOL-operated fleet. MITSUI OSK Lines is making concrete moves towards its goals of achieving net zero emissions with the launch of its Blue Action Net-Zero Alliance.

The programme aims to reduce the Scope 3 greenhouse gas emissions of shippers and non-vessel operating common carriers that use ocean transport services, by making available low-emission marine transport services that use alternative fuels.

The move builds on MOL’s initiative in early 2024 to become the first shipping company in the Asia-Pacific region to issue environmental attributes certificates of low-emission voyages, using alternative fuels tradable on a platform built in collaboration with Dutch start-up 123Carbon.

MOL has since set up a system that can ensure EACs can be issued from operations, from implementing low-emission voyages using alternative fuels in its fleet, which can then be allocated to customers.

The rising use of renewables and shift to zero-emission fuels has led to the need to be able to verify and substantiate claims to specific energy sources, including renewables. EACs are contractual instruments that convey information about a unit of energy, including the resource used to create the energy and the emissions associated with its production and use.

 The EACs traded with customers under MOL’s Blue Action Net-Zero Alliance contain environmental attributes of specific low-emission voyages undertaken by the MOL-operated fleet. These include greenhouse gas emissions reduction data quantified in units of tonnes of carbon dioxide equivalent, which are allocated to the EACs buyers as well as details of the relevant low-emission voyage.

MOL has gone on to carry out initial transactions with three key NVOCCs for the issued EACs: Nippon Express, CH Robinson Worldwide and MOL Logistics.

Customers that have been allocated EACs can then reflect their activities for Scope 3 reduction through marine transportation services in their sustainability reports and other materials based on the description in the EACs.

Similar to the system MOL has already put in place for its car carrier customers, the EACs will be traded on a book-and-claim model, which will allow for flexible trading depending on the customers’ Scope 3 reduction targets and budget, regardless of whether or not there are physical ties between them and the low-emission voyages that MOL undertakes.

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

MOL has also made investments to build up a clean marine fuel supply chain, as well as converting more of its fleet to renewables.

The major Japanese line hopes its latest initiative will enable it to build better relationships with its customers to offer low-emission marine transport services that meet their needs.