Holland-based start-up 123Carbon advocates for a game-changing shift in China’s biofuel industry—encouraging the nation to use low-carbon fuel in its ocean-going vessels rather than exporting it.
The move aims to significantly reduce emissions and costs associated with the transportation of biofuels globally. Jeroen van Heiningen, the managing director and co-founder of 123Carbon, believes that China’s strong capacity in biofuel production, particularly biomethanol, can play a pivotal role in decarbonizing the global shipping industry, says an article published on scmp website.
Elevating China’s Role In Biofuel Consumption
By utilizing low-carbon fuel in its domestic maritime fleet, China can make substantial strides in combating climate change. Biomethanol, derived from biomass like forestry and agricultural waste, offers a carbon footprint up to 95% lower than conventional fossil fuels.
123Carbon is actively working to bring its knowledge and expertise to the Chinese market, recognizing the country’s significant potential in biofuel production.
Digital Technology To Facilitate Emission Reduction Benefits
The use of digital technology is proposed to streamline the process, allowing cargo owners to account and pay for carbon emission reduction benefits efficiently. 123Carbon’s digital registry, launched in 2021, focuses on marine, air, and road transport carbon reduction initiatives.
The platform enables suppliers of low-carbon fuel and shipping companies to issue, manage, and sell externally verified emissions reduction certificates.
Overcoming Challenges In Biofuel Adoption
Despite the growing demand for biofuels, challenges persist in their adoption. A lack of a universally recognized mechanism to account for climate mitigation benefits makes it difficult for container vessel owners to charge extra for lower carbon fuels.
The platform’s use of blockchain technology aims to address this by collecting and storing verifiable, auditable, and immutable information related to greenhouse gas emissions reduction activities in the logistics sector.
Recognition And Standardization Efforts
While 123Carbon’s platform uses blockchain to ensure data integrity, it has not yet been endorsed by key international standard setters such as the Greenhouse Gas Protocol and Science Based Targets initiative (SBTi). Efforts are ongoing to define and standardize instruments like “book-and-claim,” which facilitate the tracking, accounting, and trading of emissions mitigation benefits.
Awards And Recognition For Innovation
123Carbon’s innovative approach was recently recognized at the Captain’s Table shipping and logistics innovation ideas pitching competition, where it emerged as the top winner. The company’s vision aligns with the increasing focus on sustainability, with companies expressing a willingness to pay a “green premium” for shipping costs to support the use of low-carbon fuels.
As the world seeks solutions to reduce emissions in the shipping industry, China’s potential shift toward using biofuels domestically rather than exporting them could be a pivotal step in the global fight against climate change. The adoption of digital platforms and blockchain technology further adds transparency and accountability to the process, contributing to the industry’s sustainability goals.
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Source: scmp
