NYK, Mitsubishi to invest in Aussie carbon credit developer
Japanese shipping firm NYK has agreed to invest in Australian Integrated Carbon (AIC), a nature-based carbon credit developer, it said on September 21. After all relevant approvals, NYK will jointly invest in AIC with Mitsubishi Corp through Japan Integrated Carbon (JIC), an intermediate holding company established by them.
NYK said it decided to “invest in and participate in AIC as it is considered to make it possible to realise ESG management through acquisition of the experience and know-how of the carbon credit creation business and supporting the net zeroing of GHG emissions of ships all over the world.”
AIC sells the credits obtained through CO2 sequestrations achieved by regrowing Australia’s native forests, through a process called human-induced regeneration. Human-induced regeneration is a methodology established in Australia. It employs new land-management practices to facilitate the regeneration of native woodlands that have been lost over the past few centuries due to cutting down and overgrazing.
The amount of CO2 stored in the regenerated forests is officially certified as Australian Carbon Credit Units by the Australian government. AIC aims to capture global CO2 emissions by 100mn metric tons through its growing portfolio in the future, NYK said.
AIC CEO Adam Townley in a separate statement said, “This is a significant opportunity to join forces with a global player to originate projects in both the Australian and international carbon markets.”
AIC was the largest bidder of nature-based carbon credits in the last two Emission Reduction Fund auctions.