Norden Rolls Out "Carbon Insetting" to Credit CO2 Cuts to Customers
Prominent names in shipping have offered carbon offsets for years, but dry bulk operator Norden has a new option for its customers: carbon insetting, a concept relatively new to ocean shipping.
Norden can operate some of its vessels on biofuel, reducing the carbon footprint of their voyages. It recently partnered with shipowner Spar Shipping and biofuel maker GoodFuels to take on 1,100 tonnes of bio-based bunkers at Rotterdam, fueling two of its vessels for voyages overseas. According to Henrik Rojel, Norden's head of decarbonization, biofuel will be a key transition fuel on the road to net-zero - and it is especially attractive as it can be used by existing vessels without modification.
Norden can then "tokenize" the CO2-equivalent reduction from biofuel bunkering and provide the credit to shipping customers who want to reduce their Scope 3 emissions (supply chain emissions). This method will take Norden's documented reductions and provide the benefits to customers who are not able to bunker low-carbon fuels themselves (for example if alternative fuel availability is limited).
“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," said Norden's head of logistics and climate solutions, Adam Nielsen.
The carbon insets will be verified by auditing company Verifavia, and tokenization provider 123Carbon will issue blockchain-registered tokens based on Norden's verified emissions documentation. Every token guarantees to the buyer that they have full ownership of the emissions reduction.
“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," said Verifavia general director Nicolas Duchêne.