First LNG-based carbon insets issued

Clean fuel supplier, Titan, and 123Carbon, a blockchain-based carbon insetting platform for transport, have issued the first LNG-based carbon insets. Insetting allows fuel providers, like Titan, and shipping companies to spread the environmental benefits of low-carbon fuels along the transport supply chain to freight forwarders and shippers.

There are strict requirements, however, on how insets are generated and allocated. These have now been set out at a global level by the Smart Freight Centre (SFC). This Netherlands-based non-governmental organisation has been involved recently in developing the ISO 14083 standard for carbon accounting and the reporting of greenhouse gas emissions along transport’s supply chain.

123Carbon will now issue insets to Titan based on SFC principles set out in its Book & Claim methodology. These cover topics including calculation rules, additionality, allocation, and inset reporting. 123Carbon also cooperates with AllChiefs, a sustainable logistics consultancy, and Verifavia, a verification protocol assurance firm.

Titan, 123Carbon, and AllChiefs have developed a bespoke approach for shipowners operating ships on (bio-) LNG to demonstrate transparency and inset integrity to other parties in their supply chains. The LNG insets are fully additional, meaning that they were not formulated using any local incentive schemes and are therefore not at risk of double-counting.

Titan is now approaching ship operators with vessels running on LNG or bio-LNG (also known as liquefied biomethane – LBM) to ‘tokenise’ their activities. It has now issued the first tokens to ship operators bunkering low-carbon or net-zero fuels and is also in discussion with shippers who are seeking high-quality and affordable insets.

The company’s director Zero-Carbon, Casper Gooren, said: “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.”

Article Editorial staff Ship&Offshore
Article Editorial staff Ship&Offshore