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

Reliance, Diehl Advance Pact for Precision-Guided Munitions

Diehl Defence CEO Helmut Rauch and Reliance Group’s Founder Chairman Anil D. Ambani have held discussions to advance their ongoing strategic partnership focused on Guided and Terminally Guided Munitions (TGM), under a cooperation agreement originally signed in 2019.This collaboration underscores Diehl Defence’s long-term commitment to the Indian market and its support for the Indian Government’s Make in India initiative. The partnership’s current emphasis is on the urgent supply of the Vulcano 155mm Precision Guided Munition system to the Indian Armed Forces.Simultaneously, the “Vulc..

Next Story
Infrastructure Urban

Modis Navnirman to Migrate to Main Board, Merge Subsidiary

Modis Navnirman Limited has announced that its Board of Directors has approved a key strategic initiative involving migration from the BSE SME platform to the Main Board of both BSE and NSE, alongside a merger with its wholly owned subsidiary, Shree Modis Navnirman Private Limited.The move to the main boards marks a major milestone in the company’s growth trajectory, reflecting its consistent financial performance, robust corporate governance, and long-term commitment to value creation. This transition will grant the company access to a broader investor base, improve market participation, en..

Next Story
Infrastructure Urban

Global Capital Flows Remain Subdued, EMEA Leads in Q1 2025

The Bharat InvITs Association’s industry update for Q1 2025 shows subdued global capital flows, with investment volumes remaining at the lower end of the five-year range despite a late 2024 recovery. According to data from Colliers and MSCI Real Capital Analytics, activity in North America declined slightly, while EMEA maintained steady levels and emerged as the top region for investment in standing assets.The EMEA region now hosts seven of the top ten cross-border capital destinations for standing assets, pushing the United States’ share of global activity below 15 per cent. Meanwhile, in..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?