Offsetting carbon emissions with fractionalized carbon credits

Needless to say, climate change is a major challenge for all of us. In my role, I’m acutely aware of the importance to take bold steps to mitigate carbon emissions; this is both a duty and a moral responsibility to protect our environment and our planet. But how can we help here whilst still keeping trade moving? Inevitably, goods have to be transported from A to B. So, when it comes to climate change, how do you manage the amount of carbon emitted, whilst still being a socially responsible business? Research shows that bulk carriers emit on average 440 million metric tonnes of CO2 emissions per year, whilst container ships emit 140 million metric tonnes (source:?Statistia).

Although these figures are sizable, the ability to calculate how much carbon emissions are being emitted into the atmosphere from a trading route is helping businesses to offset their emissions.?For example, we can compute very easily the amount of carbon emissions on a route such as Shanghai to Los Angeles for instance. And once we do this, we can take steps to offset the impacts on the environment through the use of carbon credits.?

Technology for sustainability?

Against this backdrop, technology provides a promising avenue to mitigate some of the adverse consequences of climate change. This is why I’m excited about the work we are doing with SeaRates. Recently, we announced the introduction of fractionalized carbon credits to our SeaRates platform.

Now this is nothing new – carbon credits has been a term that has long being used, but often the way this is fractioned is not verified through a reputable body. A shipping company, for example, may be offsetting their emissions through a reforestation project, but how do they know that their support is really reaching the local people on the ground? And even if projects are benefitting, certain companies may want to see local entities benefit from their efforts, based on their focus areas. A company in Spain, for example, may want to see a local project benefit, and a company in Rwanda may want to see local farmers benefit from a coffee producing project.?Needless to say, those offsetting their carbon emissions should have a choice of where they put their efforts.

This is where the importance of providing a verified body lies, and it’s what we do in terms of providing a verified ‘gold standard’ body that supports and ensures all carbon offsetting projects are verified – so companies can be sure they are looking to offset their emissions in a sustainable way.

Everyone has a role to play

It also means that we can provide a way, through the?SeaRates?platform, for all companies to help protect the planet and offset their emissions, whether they are big or small.?

Previously though, the cost of credits could often be prohibitive for SMEs, which are often only starting on their journeys towards net zero. It means that they are unable to support and offset their emissions here as they are effectively ‘priced out’ because of the high costs associated with purchasing. This is why adding fractionalized carbon credits to our SeaRates platform is playing a role here in helping companies on their carbon offsetting journey.

With fractionalized credits from DP World’s Carbon Pool - a select and verified pool of credits - customers of all sizes can offset their emissions based on their objectives and embed carbon removal into all their shipping needs.

We hold the view that all individuals should have the ability to combat climate change. Any action, regardless of size, is significant in the battle against climate change and fractionalized carbon credits eliminate any financial barriers in offsetting carbon emissions. We take pride in being a leader in fractionalizing carbon credits in the spot shipping market, which will help to ultimately bridge the gap in climate action equality.