Japanese shipping carrier Mitsui O.S.K. Lines (MOL) is involved in a blockchain pilot for carbon insets. It’s tokenizing the CO2 reductions from using biofuels rather than conventional marine fuels. One advantage of the insets is that the shipping line can recover some of the costs of the more expensive fuel. It does so by passing on some of the inset benefits to freight forwarders and clients shipping goods.
It’s common to hear about tokenized carbon credits in the blockchain world, but that involves offsets rather than insets. One party does the ‘clean’ activity and sells the carbon credit to a company that wants to offset its pollution. The buyer is not performing a clean activity, and the carbon savings are not directly related to its processes.
In contrast with carbon insets, the buyer incorporates the clean activity into its processes, such as ensuring the logistics process is relatively sustainable.
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