Japan's MOL and Marubeni Launch JV for Carbon Removal in India
ECONOMY & POLICY

Japan's MOL and Marubeni Launch JV for Carbon Removal in India

A newly formed joint venture between Japan’s Mitsui OSK Lines (MOL), the world’s second-largest ship owner by fleet size, and Marubeni Corporation aims to develop new forests covering 10,000 hectares in India, with plans to begin handling carbon credits by 2028.

The joint venture, Marubeni MOL Forests Co, which is 60 per cent owned by Marubeni and 40 per cent by MOL, will be involved in the creation, purchase, sale, and retirement of nature-based carbon removal credits, according to a statement from MOL.

The term "retire" refers to the cancellation of carbon credit rights on behalf of customers, thereby offsetting their greenhouse gas (GHG) emissions.

Nature-based carbon removal credits are generated through the direct removal of CO2 from the atmosphere using natural ecosystems, such as afforestation and reforestation projects.

MOL and Marubeni signed a shareholder agreement to establish the joint venture. The venture is designed to contribute to global environmental preservation and sustainable societal development by creating, trading, and retiring nature-based carbon removal credits, with the first project to be launched in India.

The global movement towards decarbonisation has accelerated in recent years, and this has brought increased focus on nature-based carbon removal credits, which rely on methods directly removing CO2 from the atmosphere. MOL stated that the market for these credits, which includes carbon sequestration through new afforestation and technologies like carbon dioxide capture and storage (CCS), is expected to expand as a vital tool in achieving net-zero goals—goals that cannot be accomplished by emission reductions alone.

MOL emphasised that nature-based carbon removal credits not only help absorb CO2 but also provide additional benefits, including biodiversity conservation, soil improvement, and water conservation. These efforts contribute to climate change mitigation while protecting the natural environment and fostering nature revitalization.

MOL and Marubeni will generate and supply nature-based carbon removal credits through this project to support decarbonisation and global environmental conservation, aligning with the development of a sustainable society. As part of its long-term climate change strategy, Marubeni is also focusing on renewable energy, hydrogen and ammonia businesses, and sustainable forest management projects in Indonesia and Australia for CO2 sequestration and biodiversity conservation.

Additionally, Marubeni is engaged in generating and trading carbon credits through GHG reduction activities in collaboration with businesses both in Japan and abroad.

Meanwhile, the MOL Group aims to become a social infrastructure company under its ‘BLUE ACTION 2035’ management plan, which seeks to strengthen non-shipping businesses and proactively invest in these fields. The group has also committed to achieving net-zero GHG emissions by 2050.

The high-quality nature-based carbon removal credits generated by this project are expected to contribute to the removal of a cumulative 2.2 million tons of CO2 by 2030, as outlined in the MOL Group Environmental Vision 2.2.

A newly formed joint venture between Japan’s Mitsui OSK Lines (MOL), the world’s second-largest ship owner by fleet size, and Marubeni Corporation aims to develop new forests covering 10,000 hectares in India, with plans to begin handling carbon credits by 2028. The joint venture, Marubeni MOL Forests Co, which is 60 per cent owned by Marubeni and 40 per cent by MOL, will be involved in the creation, purchase, sale, and retirement of nature-based carbon removal credits, according to a statement from MOL. The term retire refers to the cancellation of carbon credit rights on behalf of customers, thereby offsetting their greenhouse gas (GHG) emissions. Nature-based carbon removal credits are generated through the direct removal of CO2 from the atmosphere using natural ecosystems, such as afforestation and reforestation projects. MOL and Marubeni signed a shareholder agreement to establish the joint venture. The venture is designed to contribute to global environmental preservation and sustainable societal development by creating, trading, and retiring nature-based carbon removal credits, with the first project to be launched in India. The global movement towards decarbonisation has accelerated in recent years, and this has brought increased focus on nature-based carbon removal credits, which rely on methods directly removing CO2 from the atmosphere. MOL stated that the market for these credits, which includes carbon sequestration through new afforestation and technologies like carbon dioxide capture and storage (CCS), is expected to expand as a vital tool in achieving net-zero goals—goals that cannot be accomplished by emission reductions alone. MOL emphasised that nature-based carbon removal credits not only help absorb CO2 but also provide additional benefits, including biodiversity conservation, soil improvement, and water conservation. These efforts contribute to climate change mitigation while protecting the natural environment and fostering nature revitalization. MOL and Marubeni will generate and supply nature-based carbon removal credits through this project to support decarbonisation and global environmental conservation, aligning with the development of a sustainable society. As part of its long-term climate change strategy, Marubeni is also focusing on renewable energy, hydrogen and ammonia businesses, and sustainable forest management projects in Indonesia and Australia for CO2 sequestration and biodiversity conservation. Additionally, Marubeni is engaged in generating and trading carbon credits through GHG reduction activities in collaboration with businesses both in Japan and abroad. Meanwhile, the MOL Group aims to become a social infrastructure company under its ‘BLUE ACTION 2035’ management plan, which seeks to strengthen non-shipping businesses and proactively invest in these fields. The group has also committed to achieving net-zero GHG emissions by 2050. The high-quality nature-based carbon removal credits generated by this project are expected to contribute to the removal of a cumulative 2.2 million tons of CO2 by 2030, as outlined in the MOL Group Environmental Vision 2.2.

Next Story
Infrastructure Urban

Recycling Leaders Push for Policy Reforms in India

As India prepares for the largest recycling-focused event in its history, industry leaders are making a strong case for policy reforms to unlock the country’s circular economy potential. Ahead of the Bharat Recycling Show (BRS) 2025, co-located with Plastics Recycling Show (PRS) India, a high-level panel discussion in Mumbai spotlighted the urgent need for regulatory clarity, digital innovation, and integration of the informal sector.Held under the theme “Unlocking Circular Value: Regulatory and Market Trends in Recycling”, the panel brought together prominent voices from across the recy..

Next Story
Infrastructure Energy

Environmental Hearing Set for 1000 MW Naying Hydro Project

The environmental public hearing for the 1,000 MW Naying hydroelectric project will take place on November 12 at Yapik community hall in Shi-Yomi district, Arunachal Pradesh, officials confirmed. The run-of-the-river project on the Siyom (Yomgo) river is being developed by the North Eastern Electric Power Corporation (NEEPCO). Construction, including a concrete dam, underground powerhouse, and tunnel, is expected to commence around 2028, with commissioning planned by 2032. The project aims to generate approximately 4,966.77 GWh of electricity. The Naying project received Central Electricity ..

Next Story
Infrastructure Energy

India Achieves 490 MWh Energy Storage Capacity by June 2025

India’s cumulative energy storage capacity reached 490 MWh by June 2025, according to data released by the Central Electricity Authority (CEA). Of this, more than 85 per cent is associated with renewable energy projects, primarily solar and wind, reflecting the country’s accelerated shift towards grid stability and clean energy integration. The CEA report highlights that 16 energy storage systems are currently operational across 10 states, with major installations in Rajasthan, Gujarat, Karnataka, and Maharashtra. These include both standalone and co-located battery systems deployed by le..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?