123Carbon, the first independent blockchain-based carbon insetting platform for the transport sector, announces that it has completed an insetting pilot with Chevron by tokenising the emissions reductions associated with bunkering of biofuel for Chevron-owned vessel in Singapore. This successful pilot allows for further introduction of carbon insetting capabilities to other third-party customers.
Carbon insetting has the potential to allow fuel providers and carriers to allocate the emission reduction benefits and the associated costs of low carbon intensity fuels across the value chain to freight forwarders and shippers. It is a rapidly growing new emissions instrument for shipping and other modalities like air and road transport to create incentives for emission reductions.
123Carbon provides the blockchain-based platform to create the inset and enables customers to create verified and immutable blockchain tokens for CO2-equivalent reductions across their supply chain. This can enable carriers to allocate carbon reductions and associated costs to customers without having to go through a robust insetting process themselves. The company partners with AllChiefs and Bureau Veritas to also support clients with implementation services and external assurance.
“We are excited to work together with Chevron to help it make a real difference in reducing carbon intensity in its supply chains. Carbon insetting is a major driver in accelerating the journey to global net zero within transportation, as well as enabling companies and regulators to monitor the verifiable impact of these carbon reduction efforts,” said Jeroen van Heiningen, Managing Director at 123Carbon. “Our work with Chevron shows that transparent, high-quality innovation will play a critical role in the marine sector, ultimately driving meaningful emissions reductions.”
“Through this pilot partnership, Chevron continues to expand our capabilities to meet customer needs, and support the acceleration of lower carbon transport,” said Donny Suhartono, President of Chevron Product Supply and Trading.
“We are proud to collaborate with 123Carbon and Chevron on this pioneering project, which demonstrates that carbon insetting can already play a significant role in helping companies to reduce CO2-equivalent emissions across their supply chains today. Carbon insetting is a key component of the lower carbon supply chains of today’s and tomorrow, helping realise a lower carbon transportation sector globally,” said Benjamin Lechaptois, Sustainability Strategy Leader of Bureau Veritas Marine & Offshore.
The generated insets for Chevron were issued based on the Book & Claim methodology developed by Smart Freight Centre, a transport-focused NGO responsible for developing global guidance for carbon insetting.