THE SPARK THAT WILL IGNITE THE ACCELERATION OF LOW-CARBON FUEL ADOPTION

The transportation market is facing an increasingly tightening web of regulatory frameworks that seek to dramatically curtail carbon emissions across all modalities.

- JEROEN VAN HEININGEN

The transportation of goods by sea, road, and air currently emits over two gigatonnes of carbon a year, which is expected to quadruple by 2050. The constantly evolving regulatory landscape has created a palpable sense of urgency behind the need to adopt low-carbon fuels and clean technology, but the difficulty in recovering these investments from the end consumer represents a significant obstacle to the adoption of low-carbon fuels, at scale.

The development of carbon insetting methodologies seeks to solve this problem. Insets allow energy providers, owners, carriers and forwarders to share the cost of carbon reduction projects with their direct customers, the broader market, or pay for their decarbonized transport through verified carbon claims. Unlike offsetting, carbon insets represent concrete reductions that physically contribute to the decarbonization of that specific supply chain, which can be allocated to freight forwarders and cargo owners based on a globally developed and fully verified book and claim methodology. This flexible allocation methodology allows for an acceleration of low carbon initiatives across all transportation modalities, as well as the opportunity for operators to share the costs of decarbonization.