One of the carbon offset projects involves afforestation in Liangdu. Image Credit: Natural Climate Solutions
Singapore LNG bunker supplier Pavilion Energy has imported its first 'carbon-neutral' gas cargo.
The well-to-tank carbon emissions associated with the cargo have been offset using carbon credits from Natural Climate Solutions projects, the company said in an emailed statement on Thursday.
Carbon offsetting allows companies to continue burning fossil fuels while paying to offset their emissions by funding emission reduction projects elsewhere. The system is useful for companies seeking to make early efforts towards emissions reduction while decarbonisation technology is no sufficiently mature in their industry, but is not a long-term solution.
"This carbon neutral cargo is another important milestone for Pavilion Energy in our ambition to provide cleaner energy and develop our carbon trading activities," Frederic Barnaud, CEO of Pavilion, said in the statement.
"Our aim is to support our customers in their transition towards a lower carbon future with solutions to meet their climate targets and potential regulatory requirements."
Pavilion was awarded a licence to supply LNG as a bunker fuel in Singapore in 2016.