The NYK Group issued a position paper positioning carbon dioxide removal (“CDR”) as a means to reduce Scope 1 emissions.
In November 2023, the Group released its decarbonization strategy, the NYK Group Decarbonization Story. In October 2024, an update, “Progress Report 2024 as Annex to NYK Group Decarbonization Story”, was provided. The NDS sets a goal of net-zero greenhouse gas emissions by 2050 and includes specific initiatives and transition plans to achieve the goal.
The Group prioritizes GHG reduction by maximizing energy efficiency and switching to next-generation fuels. For residual emissions that cannot be avoided through efforts to reduce emissions, CDR will be utilized as a means equivalent to Scope 1 emissions reduction to achieve net zero by 2050. The Group will begin CDR credit3 procurement in fiscal 2025, with the aim of retiring 100,000 tons by 2030.
Overview of Position Paper
- The Group agrees with the CDR approach advocated by the IPCC4 and this agreement is reflected in the NDS.
- The Group aims to achieve net-zero GHG emissions by prioritizing the maximization of energy efficiency and the conversion to next-generation fuels while utilizing CDR for unavoidable residual emissions.
- Time will be needed to secure a supply of CDR credits equivalent to the residual emissions of hard-to-abate industries, such as aviation and shipping.
- Since CDR technology and rules are still in their infancy, global regulations and frameworks are essential to promote its use.
- The Group is to use CDR credits that apply an “removal” approach among the three types of credits: reduction, removal, and avoidance.
- The trial procurement of CDR credits will begin in fiscal 2025, aiming to retire 100,000 tons of emissions by 2030.
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