+
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

India to Invest Rs 600 Billion to Upgrade 1,000 ITIs

As part of its drive to modernise vocational training, the Ministry of Skill Development and Entrepreneurship (MSDE), in collaboration with Gujarat’s Labour and Employment Department, held a State-Level Workshop at the NAMTECH Campus within IIT-Gandhinagar to discuss the National Scheme for ITI Upgradation.The consultation brought together key stakeholders from industry and the training ecosystem to align expectations and support implementation of the scheme, which aims to transform 1,000 Industrial Training Institutes (ITIs) across India using a hub-and-spoke model. The total outlay stands ..

Next Story
Infrastructure Urban

India Unveils Rs 600 Billion Maritime Finance Push

The Ministry of Ports, Shipping & Waterways (MoPSW) hosted the Maritime Financing Summit 2025 in New Delhi, bringing together over 250 stakeholders including policymakers, industry leaders, global investors, and financial institutions. The summit, held under the ambit of Maritime Amrit Kaal Vision (MAKV) 2047, focused on transforming India into a leading maritime power with strengthened financial, infrastructural, and technological capabilities.Union Minister Sarbananda Sonowal emphasised India's strategic progress, noting that average port turnaround times have dropped from four days to u..

Next Story
Infrastructure Urban

Govt Allocates Rs 500 Million To Boost Community Radio

The Central Government, through its ‘Supporting Community Radio Movement in India’ scheme, has allocated Rs 500 million to strengthen the community radio ecosystem across the country. The initiative aims to assist both newly established and long-operational Community Radio Stations (CRSs), ensuring their relevance to local educational, social, cultural, and developmental needs.According to the policy published by the Ministry of Information and Broadcasting, CRSs may be set up by not-for-profit organisations with at least three years of demonstrated community service. These stations are ex..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?