Mitsui O.S.K. Lines, has collaborated with Shell Trading Rotterdam  to implement a book and claim model that enables the indirect generation of Environmental Attribute Certificates  derived from the use of low-carbon fuel on vessels operated by third parties.

This initiative applies the theory of the Market Based Measures Accounting Framework (the MBM Framework)published by the international non-profit organization Smart Freight Centre (SFC), and utilizes the registry provided by 123Carbon B.V. (123Carbon).

Roles of MOL and Shell in this collaboration:
• Role of Shell

Shell facilitated the fuel switch from VLSFO (very low sulfur fuel oil) to FAME (fatty acid methyl ester), a lower-carbon marine biofuel, on a vessel not operated by MOL.

The vessel operator received the lifecycle GHG emission reduction value attributable to its own operations (typically recognized under “Scope1” of the vessel operator) generated by this fuel switch. At the same time, the vessel operator waived their rights to the lifecycle GHG emissions reduction value for their cargo owners (typically recognized under “Scope3” of the cargo owners) generated by this fuel switch.

Shell recorded the lifecycle GHG emission reductions value for the cargo owners into the 123Carbon registry and allocated it to MOL in accordance with the MBM Framework.

• Role of MOL

MOL received the lifecycle GHG emission reduction value for the cargo owners allocated by Shell and, following verification in line with the MBM Framework, converted it into EACs.

These EACs are made available to MOL’s customers as part of low-carbon maritime transport services through MOL’s carbon insetting and Book and Claim program, “BLUE ACTION NET-ZERO ALLIANCE^{(Note 5)}.”

Significance of this initiative
MOL and Shell, both of which serve on the governing board of the Book and Claim Community^{(Note 6)}, share a vision of accelerating the decarbonization of transportation through the sound operation of Book and Claim mechanisms. We consider this initiative to be significant in the following respects:

• It reaffirmed that the lifecycle GHG emission reduction value for the cargo owners generated from a low-carbon fuel switch on a third-party vessel can be credibly allocated to MOL and converted into EACs for its customers, when implemented in line with SFC’s MBM Framework.
• It demonstrated the potential for shipping companies to address the varying needs and operational realities of cargo-owning customers pursuing low-carbon maritime transport services. By utilizing Book and Claim models, stakeholders across the maritime ecosystem can collaborate to create a wider range of credible low-carbon transport solutions.

Since launching its carbon insetting and Book and Claim program, MOL has engaged in extensive dialogue with cargo owners and freight forwarders Through these discussions, MOL has received expectations not only for maritime transport, but also for the provision of EACs across other transport modes such as air and land transport. MOL intends to explore further collaborative opportunities with Shell, a provider of low-carbon fuels and Book and Claim solutions across aviation, marine, and land transport, to expand the low-carbon transport options MOL can offer customers.

Under the MOL Group’s “Environmental Vision – BLUE ACTION 2035 Phase 2-” carbon insetting is identified as one of “Initiatives Complementing Net Zero”. Going forward, MOL will continue to accumulate a wide range of initiatives, including this case, to further strengthen our carbon insetting business.