For hard-to-abate sectors such as global shipping, achieving net-zero requires moving beyond operational efficiencies to invest in vessels operating on green fuels and actively building the carbon removal ecosystem. Mitsui O.S.K. Lines (MOL) adopts a strategic approach to securing carbon dioxide removal (CDR) through long-term commitments both to direct involvement with projects and to purchasing removals from others. MOL is promoting nature-based CDR solutions through its support for projects such as forest and mangrove regeneration. Since January 2022, MOL has participated in a blue carbon project aimed at restoring and conserving mangroves in South Sumatra, Indonesia. The project aims to reduce CO2 emissions by about 5 million tonnes through forest conservation activities and to absorb or store another 6 million tonnes of CO2 through afforestation of mangroves and other plants on about 9,500 hectares of bare land, over the next three decades. Concurrently, MOL is also supporting technology-based solutions, by committing to purchase at least 50,000 tonnes of CO2 removals utilizing CDR technologies by 2030. One leading example is its multi-year deal for over 10,000 tonnes of permanent carbon removal via direct air capture (DAC) with Climeworks. By investing in and purchasing from leading DAC pioneers, MOL not only addresses its own residual emissions but also provides the crucial demand signal needed by CDR suppliers to scale up these vital climate technologies.CASE STUDY 3 Mitsui O.S.K. Lines – building a carbon dioxide removal ecosystem Tencent, a leading technology company based in China, prioritizes impact and innovation in its carbon credit procurement, focusing on high-integrity global credits. Tencent is building supplies of credible carbon credits through long-term investment and ecosystem collaboration. A 15-year agreement with a Singapore-based investor has secured over 1 million high-quality credits from forestry and engineered removal projects, strengthening cross-border transactions and enhancing global VCM connectivity. Meanwhile, Tencent provides catalytic funding for early-stage projects, such as an Indonesian feasibility study for peatland restoration. Tencent treats carbon credits as financial instruments to accelerate climate solutions, integrating digital tools to strengthen methodological innovation and market supply. Partnering with Chinese research institutions, Tencent is co-developing methodologies for blue carbon (e.g. seagrass, saltmarsh), afforestation projects and innovative agriculture (e.g. water-saving and drought-resistant rice – WDR), supported by digital innovations such as forestry carbon credit measurement platforms and WDR planting apps. These tools facilitate data automation and accuracy, making it easier to document sustainable practices and scale up eligible credits. Tencent also collaborates with multilateral development banks and financial institutions to provide grants that enhance the design and monitoring of nature-positive projects, boosting returns through advanced credit purchase agreements. Tencent’s portfolio blends both technology-driven and nature- based projects, supporting carbon removal and reduction. It invests in composite credit instruments, combining high-cost with lower-cost credits to optimize both climate impact and cost-effectiveness. This approach delivers co-benefits such as biodiversity protection and community development, while supporting the scale-up and cost reduction of next- generation carbon removal technologies.CASE STUDY 4 Tencent – building an impact-driven carbon credits portfolio Source: expert interview with Tencent.Source: expert interview with MOL. Asia’s Carbon Markets: Strategic Imperatives for Corporations 35

Asia's Carbon Markets Strategic Imperatives for Corporations 2025