Japan's NYK Line invests in Australian Integrated Carbon. Image Credit NYK / AIC
Japan's NYK Line agreed to invest in Australian carbon credits firm Australian Integrated Carbon (AIC) as part of efforts to decarbonize the shipping industry.
AIC sells carbon credits obtained through primeval forest restoration projects.
NYK will jointly invest in AIC with Mitsubishi Corporation through their holding company Japan Integrated Carbon (JIC) in return for a 40% stake in AIC.
"Since ships have a long life cycle of about 20 years, it is expected that some ships among more than 50,000 ships worldwide will be forced to use fossil fuels during the transition to zero-emission fuels," NYK explained.
"For vessels that have not yet introduced zero-emission fuel in the future, it is expected that their GHG emissions will be reduced to net zero by utilizing the carbon offset method.
AIC said Mitsubishi Corporation had identified Australia’s expansive landscapes as offering "significant potential to generate quality carbon credits (ACCUs)."
"With Mitsubishi Corporation’s support, AIC’s immediate plan is to develop projects delivering up to 100 million ACCUs," it added.
One ACCU represents one tonne of carbon dioxide equivalent (tCO2-e) stored or avoided by a project.