NYK, Yusen Logistics embrace 123Carbon’s platform to manage GHG emission reductions

Japanese shipping company Nippon Yusen Kabushiki Kaisha (NYK) and compatriot logistics provider Yusen Logistics (YL) have started using a digital platform for managing greenhouse gas (GHG) emission reductions.

The platform is provided by 123Carbon, a Netherlands-based startup working on decarbonizing the logistics sector.

As informed, NYK and YL will use the platform to support the reduction of Scope 3 GHG emissions by allocating to platform customers the GHG-emission reductions achieved through the use of alternative fuels in their ocean, air, and land transport services and issuing certificates confirming those reductions.

Specifically, NYK generates and manages GHG emission reductions through the use of biofuels in its bulk shipping business, recognizes the environmental value of these reductions, then allocates them to YL and issues a certificate of confirmation. The first allocation will be completed on the platform after verification by a third-party certification organization.

What is more, YL procures GHG-emission reductions generated by ocean shipping companies like NYK and its airline partners and provides accompanying certificates. Additionally, for land transport, YL will utilize sustainable fuels derived from waste cooking oil and other renewable materials to power its own trucks in some countries and areas, actively creating and managing GHG-emission reductions as a transport operator. A one-stop service on the platform will be officially launched by YL shortly.

“We welcome NYK and YL as new users to our advanced platform. They are not only using our registry services, but have also adopted our branded platform, allowing them to directly involve their customers in their low carbon activities. We are looking forward to executing this trial and collaborating with NYK and YL on this exciting topic,” Jeroen van Heiningen, Managing Director, 123Carbon, commented.

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Among the key features of the platform are that clients can monitor GHG emission reduction methods and the alternative fuels used to generate the reductions; the management and allocation of GHG emission reductions are secured using blockchain technology to prevent data tampering; and the entire process, from calculating GHG emission reductions to allocating, is verified by a third-party certification organization to ensure the platform’s reliability and transparency.

NYK supplies biofuel to car carriers, bulk carriers, and crude oil tankers. In November 2023, the company released the “NYK Group Decarbonization Story,” which sets a GHG-reduction target to achieve net-zero emissions by 2050.

YL is working toward its medium-term target of reducing GHG emissions by 45% by 2030, focusing primarily on Scope 1 and 2 emissions to align with its goal of achieving decarbonization by 2050.