Commenting on the agreement, Kentaro Kimoto, Tokyo Gas’s Managing Executive Officer said “In addition to the widespread expansion of natural gas with its character of having the least CO2 emission among fossil fuels, we will continue our effort to realize the low carbon society as well as providing a new value to our customers by introducing carbon neutral LNG as a new effort. We are very pleased to work on this new initiative together with Shell who are focused in their efforts to deliver more and cleaner energy.”
GS Energy stated that “We are pleased to participate in initiatives that will reduce CO2 emissions together with Shell. GS Energy will make every effort to shape a more sustainable environment and assist the transition towards a lower-carbon future.”
“Carbon neutral LNG cargoes are another choice we are offering our customers, as they seek to address their CO2 emissions today. In turn, they are then able to offer the same to their customers who increasingly want to reduce the net carbon footprint of their energy use,” said Slavko Preočanin, Vice President Shell LNG Marketing & Trading. “This deal will set the ground for us to further develop this offering and we are pleased to be able to make this pioneering first step possible for our valued partners Tokyo Gas and GS Energy.”
Nature-based projects protect, transform or restore land and enable nature to add oxygen and absorb more CO2 emissions from the atmosphere. Each carbon credit is subject to a third-party verification process and represents the avoidance or removal of 1 tonne of CO2. Credits used for this deal are bought from Shell’s global portfolio of nature-based projects, including Katingan Peatland Restoration and Conservation Project in Indonesia and Cordillera Azul National Park Project in Peru. These projects also have extra benefits such as offering alternative sources of income to local communities, improving soil productivity, cleaning air and water, and maintaining biodiversity.
More and more people are looking for ways to reduce their personal carbon footprint. Offsetting enables individuals and organizations to compensate for the emissions they cannot avoid, by supporting worthy projects that reduce emissions somewhere else.
The transition to a low-carbon energy future requires a range of solutions across the global energy system, from electricity generation to industry and transport. LNG plays its role by providing a readily available source of gas for use in these sectors, bringing the benefits of being the cleanest-burning hydrocarbon, producing half the greenhouse gas emissions and less than one-tenth of the air pollutants of coal.
The terms “carbon neutral”, “carbon off-set” or “carbon off-set compensation” indicate that Shell has engaged in a transaction to ensure that an amount of carbon dioxide equivalent to that associated with the production, delivery and usage of the fuel has been removed from the atmosphere through a nature-based process or emissions saved through avoided deforestation.