Clean fuel producer Titan LNG (Titan) and Carbon, the first independent blockchain-based carbon insetting platform for the transport sector, have issued their first liquefied natural gas (LNG)-based carbon insets, reports gas online.
Shippers and freight forwarders will be able to acquire tokens using the 123Carbon platform generated by shipowners’ and operators’ purchase of LNG fuel from Titan.
By employing carbon insetting, carriers are able to share the carbon reductions of their low carbon activities with freight forwarders and shippers across the global value chain, enabling decarbonisation within their own supply chains.
The generation and allocation of these insects are subject to strict requirements defined by the Smart Freight Centre (SFC), a Netherlands-based NGO which was involved in the development of the ISO14083-norm for transport carbon accounting earlier this year.
Insetting vs offsetting
Carbon offsetting is when a company or individual financially contributes to a third party or organisation in order to create a positive environmental impact that will counteract their own internal carbon emissions.
Less well known, carbon insetting is when a company refers to offsetting their emissions with a carbon offset project that comes from their own value chain.This helps companies reduce emissions within their own value chain.
According to 123Carbon, it will issue insets to Titan on its registry using their multi-modal Book & Claim methodology. Titan can then manage these insets using a blockchain wallet and transfer to its customers.
“Insetting can be an effective means of expediting the energy transition in shipping, which is currently blocked by price levels; fossil fuels remain cheaper than renewable fuels. The insetting system helps to finance this price gap. It forms a new carbon economy: a new system that can incentivise the use of cleaner fuel alternatives,” said Caspar Gooren, Director Zero-Carbon at Titan.
“We are delighted to be working with 123Carbon to help bring this nascent tool for sustainable shipping into the mainstream marine operating environment. Through the leading 123Carbon platform, all partners within its ecosystem can have a significantly positive influence on the decarbonisation of marine supply chains.”
Emissions reduction project
To provide transparency to the market, every token issued on the platform contains all information on the emissions reduction project, including the emissions factors used, risk mitigation actions and external assurance.
By taking a bespoke approach for (Bio-)LNG ship operators, the partners generate LNG-insets that are considered fully additional.
This means that the insets were not derived by making use of local incentive schemes and can be purchased by any party.
Jeroen van Heiningen, Founder and Managing Director of 123Carbon added: “The need for carbon insetting is clear. We now need the right tools to generate and transfer these insets safely and transparently. Our platform provides just that.”
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Source: Gas world