Global Shipping Business Network (GSBN) said it has completed a pilot with COSCO Shipping (COSCO) to issue traceable and verifiable green certificates powered by blockchain technology.
The not-for-profit data exchange platform said as global shippers step up to their corporate responsibility of safeguarding the environment, some corporations have also started to pay a green premium on biofuel usage in exchange for Greenhouse Gas (GHG) reduction claims or Green Certificates.
"To increase traceability and verifiability, COSCO has partnered with GSBN, an established neutral party in the shipping industry, to launch its Hi ECO blockchain-based shipping product," the announcement said.
GSBN noted that it leverages its blockchain-enabled network to establish a linkage between the Proof of Sustainability (PoS) Certificate, which documents the purchase of biofuel by the carrier, and Green Certificates issued to corporations.
It said that this connection "guarantees" that each Green Certificate corresponds to an actual purchase of biofuel instilling confidence in the marketplace.
GSBN noted that the technology enables easy verification through attestation, allowing stakeholders to validate the veracity of the claims — enhancing credibility and establishing a foundation of trust among all participants involved in the shipping process.
"Establishing a connection between the Proof of Sustainability and the Green Certificate is merely the first step," GSBN said. "The ultimate goal is to document the entire biofuel procurement process, from its source to its consumption, on the GSBN blockchain."
GSBN noted that its vision is to create a transparent and continuous chain of custody of biofuels, thereby upholding the integrity of environmental claims linked to biofuel.
'Measuring the impact of decarbonisation requires access to trusted data. The completion of this pilot with COSCO is a positive step towards ensuring that green claims are traceable and verifiable," said Bertrand Chen, CEO at GSBN.
"In doing so, we can create a virtuous cycle in which the value of green shipping can be accounted for to justify investment and further expand green shipping over time," he added.
Tang Wei, strategic customer developing & maintaining department manager at COSCO Shipping, said that the Hi ECO Certificate complements its commitment to reducing emissions throughout the entire Well to WAKE cycle and underpins the value we aim to provide our customers through green shipping.
"This pioneering solution has been further guaranteed to be fair and equitable through GSBN, which serves as a neutral party and through its blockchain-enabled platform, provides our customers assurance of immutability and traceability," Wei added.
