JAPANESE ocean carrier Nippon Yusen Kaisha Line (NYK) is investing in Australian Integrated Carbon, which sells carbon credits obtained through primeval forest restoration projects.
NYK said after the completion of approval by the relevant authorities, it would jointly invest in AIC with Mitsubishi Corporation through Japan Integrated Carbon (JIC), an intermediate holding company established by the two companies.
While NYK and other lines are shifting to using LNG, which emits fewer greenhouse gasses than heavy fuel oil, the line recognises that zero-emission fuels are still in the research and development phase. In the meantime, ships have a lifecycle of about 20 years, so there will still be greenhouse-gas-emitting vessels plying the waves for at least that long. NYK aims to use the carbon-offset method to reduce emissions to net zero.
NYK said it was under these assumptions that it decided to invest in and participate in AIC. The company said the investment would make it possible to realise ESG management through the acquisition the experience and know-how of the carbon credit creation business.
AIC sells credits that are obtained through sequestering carbon dioxide through the regrowth of native Australian forests through a process called human-induced regeneration. Human-induced regeneration employs new land-management practices to facilitate the regeneration of native woodlands that have been lost over the past few centuries due to cutting down and overgrazing.
The amount of carbon dioxide stored in the regenerated forests is officially certified as Australian carbon credit units by the Australian Clean Energy Regulator.
