Carbon Neutral LNG Buyers Alliance Formed To Offset Emissions

March 9, 2021

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Japan’s city-gas supplier Tokyo Gas and 14 firms across different industries established the Carbon-neutral LNG Buyers Alliance to promote the use of the sustainable LNG.
The 14 companies are those that signed an agreement to purchase carbon-neutral city-gas from Tokyo Gas.
The alliance aims to expand carbon-neutral LNG market by raising awareness and incorporating it into ESG investment standards and environmental regulations.

A total of 15 Japanese companies have come together to form a carbon-neutral liquefied natural gas (CNL) buyers alliance, reports Platts.

Carbon-neutral energy

The alliance was established together by Tokyo Gas as an importer and supplier of carbon-neutral LNG, and the remaining companies as buyers. The aim of the alliance is to spread the use of CNL.

Choosing carbon-neutral energy is an important solution that will contribute toward tackling climate change and the sustainable development goals, as well as directly lead to ESG management.

Recognition of CNL

The companies participating in the alliance will work to increase the recognition of CNL in society and carry out initiatives to improve its evaluation by investment institutions and establish its position within the various systems in Japan.

The companies work together with the aim of contributing toward Japan’s achievement of a carbon-neutral society by 2050.

Tokyo Gas further noted that CNL is a type of LNG that offsets greenhouse gases, which are generated in the process, from extraction to the burning of natural gas, and that carries a carbon credit (carbon offsetting). Thus, it is deemed to be carbon neutral on a global scale even when burned.