Together with 123Carbon and its partners, AllChiefs and Verifavia, NORDEN will begin to issue carbon inset tokens through 123Carbon’s newly developed platform to support the decarbonisation of customer supply chains.
Bridging reductions with customers looking to decarbonise
With the platform, NORDEN will now be able to tokenise CO2-equivalent reductions made on biofuel voyages and allocate them to industry customers who are looking to reduce their maritime Scope 3 emissions.
Adam Nielsen, Head of Logistics and Climate Solutions at NORDEN, says: “Carbon insets are not new to the market, but are in their early days in the shipping industry. However, we believe that carbon insetting will play a major role in accelerating the uptake of low-carbon fuels by connecting the demand for green freight with the supply, while bridging availability constraints.”
Today, the supply of low-carbon fuels such as biofuel is limited both in terms of production and geographic availability. With the platform, the intent is to connect emission reductions made by NORDEN with customers that due to trading routes or other constraints are not able to bunker low-carbon fuels, but are still looking to decarbonise their operations or supply chains.
Jeroen van Heiningen, Managing Director of 123Carbon, added: “It is critical for industry leaders like NORDEN to become early adopters of innovations that will ultimately drive the agenda for carbon insetting. We are here to empower organisations to make a real difference within their own supply chains and accelerate the decarbonisation of transportation. This partnership demonstrates the value of having high quality and transparent solutions that people can rely on.”
Full transparency and traceability
The platform support auditing companies like Verifavia, a global verification auditing body specialised in transport, to thoroughly verify all underlying documents online, after which immutable tokens are issued on blockchain.
Nicolas Duchêne, General Director of Verifavia, said: “Carbon insetting differs from carbon offsetting in that carbon emissions are reduced directly within the shipping value chain, rather than somewhere outside of and unrelated to the industry. Unlike carbon offsetting, the entire chain of custody for the insetting process is independently verified – as well as the reductions corresponding to an intervention – enabling genuine transparency over carbon reductions supported by reliable certification.”
Every token guarantees complete ownership to the buyer and provides full transparency and chain-of-custody with regards to the biofuel interventions, emission calculations, assurance and risks mitigations.