Chevron partners with 123Carbon on Marine carbon insetting pilot
Singapore / Schiphol-Oost, Netherlands, September 29th 2023
123Carbon, the first independent blockchain-based carbon insetting platform for the transport sector, today announced 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, and 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 also partners with AllChiefs and Bureau Veritas to 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 partner with 123Carbon and Chevron on this pioneering project, which demonstrates that carbon insetting can already play a significant role in enabling companies to reduce CO2-equivalent emissions across their supply chains today. Carbon insetting is a key component of the decarbonised supply chains of today’s and tomorrow, helping decarbonizing transportation sector globally. Traceability and validation of the emissions reductions benefits are essential to achieve this vision, and at BV we are proud to contribute our expertise by independently verifying the insetting process and ensuring that claims can be trusted. This provides companies and their end customers with genuine transparency over carbon reductions, supported by reliable verification,” 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.
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 CO2 reductions within their supply chain.
For more information visit: https://www.123carbon.com/
Chevron is one of the world’s leading integrated energy companies. We believe affordable, reliable and ever-cleaner energy is essential to enabling human progress. Chevron produces crude oil and natural gas; manufactures transportation fuels, lubricants, petrochemicals and additives; and develops technologies that enhance our business and the industry. We aim to grow our traditional oil and gas business, lower the carbon intensity of our operations and grow new lower carbon businesses in renewable fuels, hydrogen, carbon capture, offsets and other emerging technologies. More information about Chevron is available at www.Chevron.com
External Affairs Advisor, Midstream & Technology