Bunker Holding has delivered maritime emissions reductions to a Fortune 500 company using 123Carbon’s advanced carbon insetting platform, alongside verification partner Bureau Veritas. This project marks the launch of Bunker Holding’s insetting capability, which delivers global decarbonisation opportunities to parties across the shipping value chain in an effort to accelerate decarbonisation in the maritime sector.
In a new partnership between Bunker Holding, a world-leading supplier of marine fuel, carbon insetting experts 123Carbon, and Bureau Veritas, Bunker Holding has concluded their first blockchain-powered carbon insetting operation. This insetting partnership allows for the additional cost delivery of lower carbon, alternative marine fuels – such as sustainable biofuel – to be shared by carriers, freight forwarders, and cargo owners within the same value chain; allocated based on a globally accepted book and claim methodology.
“We’re excited to work with 123Carbon and Bureau Veritas, as we believe in complete transparency of how insets are created and transferred. Insetting is not new, but one concern within the maritime sector is under what circumstances alternative fuels are supplied, and who owns the emissions reductions,” says Tobias Troye, Head of Carbon Solutions at Bunker Holding.
By combining its alternative fuel supply expertise, its global access to low carbon fuels and extensive carrier network with 123Carbon’s secure platform, Bunker Holding can offer carriers, freight forwarders, and cargo owners complete transparency and assurance regarding how their insets reduce maritime emissions.
“We are delighted that Bunker Holding not only uses our advanced platform for the issuance of the certificates but has also chosen a fully branded solution to deliver the certificates in a secure environment to its customers,” says Jeroen van Heiningen, Managing director of 123Carbon.
Working with 123Carbon’s blockchain-based insetting platform, and Bureau Veritas as a third-party assurance partner to verify the initiative and all related documentation, ensures that all insets are issued according to Smart Freight Centre’s Book & Claim methodology and 123Carbon’s assurance protocol.
To facilitate the intervention, Bunker Holding connected three different parties: the cargo owner, who wishes to reduce their scope 3 emissions and is willing to pay the “green premium”, the ship operator, to decarbonise its vessels through the use of biofuels, and the biofuel supplier, to deliver safe, high-quality low-carbon fuels. Due to the commitment from the cargo owner to purchase Scope 3 Insets, Bunker Holding was able to offer the biofuel at a more competitive cost to the ship operator, enabling the carrier to use biofuels instead of conventional fossil fuels.
“As a Group, we are operationalising our decarbonisation strategy, and one key component has been to develop our alternative marine fuel supply capabilities, among others by securing fully certified biofuel availability in more than 100 ports around the world. The relatively higher cost of alternative fuels may still prevent carriers from bunkering it. However, carbon insetting helps bridge that gap, as it enables cost-sharing and also sends an important demand signal to alternative fuel producers to scale up production,” says Valerie Ahrens, Senior Director of New Fuels and Carbon Markets at Bunker Holding.
What is Carbon Insetting?
Carbon insetting is a strategy used to reduce carbon emissions by investing in emission reduction projects within a company’s own value chain or operations. Unlike offsetting, which involves compensating for emissions by funding projects elsewhere, insetting focuses on reducing emissions internally. This can include projects such as energy efficiency improvements, renewable energy installations, or sustainable fuel adoption. In the context of the maritime industry, carbon insetting involves initiatives aimed at reducing emissions within the shipping value chain, such as using alternative fuels or implementing efficiency measures.
About Bunker Holding A/S
Bunker Holding is the global leader in purchasing, selling, and supplying marine fuel and lube oil as well as providing risk management and other vital services for the shipping industry. The company operates via more than 1,660 ports worldwide and is present in 32 countries with 62 offices and more than 1,500 skilled employees. The group has a long history but remains forward-looking and focused on answering the needs and challenges of an ever-changing industry.
About 123Carbon
123Carbon was founded to accelerate the decarbonisation of transportation. The industry needs to be able to make investments in carbon reduction projects on behalf of customers and beyond and allocate the resulting carbon reductions to organisations wishing to pay for their transportation emissions. That solution is called carbon insetting. Developed collaboratively with the industry, for the industry, 123Carbon’s platform is the first independent one-stop shop for carbon insetting, empowering organisations to own, manage, allocate or buy verified carbon reductions within their supply chain.
About Bureau Veritas
Pioneering the safety and performance of new technologies since 1828, Bureau Veritas Marine & Offshore is one of the world’s leading ship classification societies and offshore safety and verification bodies. Responsive and flexible without compromise, BV M&O supports clients worldwide with practical advice, tools, and technology to run safe, sustainable, and high-performing businesses. BV M&O is part of Bureau Veritas, a world leader in testing, inspection, and certification services, so we have a truly global outlook on the global supply chain and blue economy.
Source 123Carbon