The NYK Group, a leading global shipping company, has outlined its plans for achieving net-zero emissions by 2050, with a strong emphasis on carbon removal strategies, according to the company’s release.
The company’s position paper, titled “Role of Carbon Dioxide Removal in the NYK Group’s Decarbonization Strategy,” acknowledges the challenges of CDR technology and market immaturity but underscores its critical role in reaching net-zero goals.
To bridge the gap between ambitious emission reduction targets and residual emissions, the NYK Group plans to procure qualified carbon removal credits starting from fiscal year 2025 (or even earlier if feasible). These credits will come from projects that offer durable carbon dioxide storage solutions with minimal risk of reversal.
The NYK Group’s strategy prioritizes neutralizing residual emissions that remain after implementing all possible mitigation measures. These measures include maximizing energy efficiency, adopting carbon capture and storage technologies, and utilizing alternative fuels like biofuels, hydrogen, and ammonia.
By actively participating in the CDR market, the NYK Group aspires to become a leader in establishing emission-balancing mechanisms for hard-to-abate sectors like maritime transportation. This leadership will involve not only emission reduction efforts but also clarifying the accounting and financial aspects of carbon removal credits within a global regulatory framework.
The NYK Group’s CDR implementation plan includes a trial phase (2025-2026), followed by a procurement execution phase (2027-2029), and a retirement preparation execution phase with a target of 100,000 tons per year by 2030 (subject to revision based on market developments).