- CDR will offset emissions from hard-to-abate sectors.
- Position on CDR Aligns with IPCC, using CDR for unavoidable emissions.
- Global Frameworks Supports global regulations to promote CDR tech.
On 27 January 2024, the NYK Group published a Position Paper on its approach to Scope 1 Emission Reduction through Carbon Dioxide Removal (CDR). This is part of a broader response to decarbonization efforts within the Group, which it has disclosed in NYK Group Decarbonization Story (NDS), published last November 2023. A supplement to NDS, Progress Report 2024 as an Annex to NYK Group Decarbonization Story, was made public in October 2024, reports NYK Line.
Decarbonization Strategy (NDS)
The NYK Group is committed to achieving net-zero greenhouse gas (GHG) emissions by 2050. The Group has outlined several initiatives to reach this target, with a strong emphasis on maximizing energy efficiency and transitioning to next-generation fuels. It will work to improve the efficiency of energy consumption in its operations and move toward fuels that generate fewer carbon emissions. For emissions that cannot be prevented using energy efficiency or fuel switching, CDR will provide an offset measure. This is considered in the general strategy for achieving the Group’s 2050 net-zero goal.
CDR in the Context of Net-Zero Goals
CD rights are an integral part of the Group’s strategy that would enable them to reach zero net emissions in 2050. The group intends to initiate the procurement of CDR credits from fiscal year 2025 to balance hard-to-abate sectors such as aviation and shipping. These industries are harder to decarbonize through improvements in energy efficiency and switching to alternatives. It has set a goal for the retirement of 100,000 tons of emissions through CDR credits by 2030, which is an important milestone toward the long-term sustainability goals.
Position on CDR
The NYK Group’s view on CDR aligns well with the IPCC’s recommendations. The Group will focus efforts on achieving net energy gains and transition to next-generation fuels. However, CDR will play a role in residual emissions not possible to remove by other means. The Group is aware that ensuring a steady supply of enough CDR credits, especially in hard-to-abate industries, will require a period. Nonetheless, the Group intends to pursue using CDR within its overall strategy for decarbonization.
CDR Technology and Global Frameworks
Though CDR technologies and regulatory frameworks are still in their nascent stages, the NYK Group emphasizes the need for establishing global regulations that can guide the use and development of CDR technologies. According to the Group, the further advancement of these technologies, along with clear regulations, will be necessary to scale CDR efforts in order to achieve global emissions reduction targets.
Types of CDR Credits
The NYK Group will concentrate on CDR credits that use the “removal” approach. This includes removal, wherein CO2 is removed directly from the atmosphere. The “reduction” is reduction at source, and the “avoidance” is preventing the emissions from happening in the first place. The Group’s focus on removal-based credits is their dedication to balancing emissions through direct removal of CO2 from the atmosphere.
Timeline for CDR Procurement
The Group will start pilot procurement of CDR credits in fiscal year 2025. These will retire 100,000 tons of emissions by 2030. This procurement will be a critical step toward the Group’s larger goal of reaching net-zero emissions by 2050.
The NYK Group is committed to achieving net-zero emissions by 2050 through the NDS. The group is taking the lead in being proactive about the environmental impact that it has created and contributing toward global climate goals through a mix of energy efficiency measures, fuel transitions, and strategic use of CDR.
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Source: NYK Line
