Through expert advisory services, Lloyd’s Register (LR) helps clients establish transparent, verifiable, and commercially viable frameworks that align emissions reductions with financial value, enabling businesses to integrate sustainability into their commercial models effectively. 

LR’s approach is to seamlessly integrate these strategies into sustainability initiatives and effectively monitor their progress towards decarbonisation goals: 

  • Carbon Insetting to reduce emissions within a company’s own supply chain, for example by using low-carbon maritime fuels, allowing cargo owners to claim Scope 3 emissions reductions.  
  • Book and Claim to financially support sustainable fuel use without directly consuming it, using a certification system similar to renewable energy credits to certify transparency and prevent double counting.  
  • GHG Emissions Trading to buy and sell carbon credits in compliance or voluntary markets, with regulated systems like the EU ETS capping emissions and voluntary markets offering offset opportunities.  

Together, these mechanisms provide flexible pathways for organisations to achieve sustainability targets while ensuring accountability and financial viability in emission reductions. 

Why LR

LR’s full range of advisory services help your businesses develop frameworks, calculation models, tools, governance structures, and monetisation strategies for carbon insetting and book & claim systems. We also offer guidance on voluntary emissions trading schemes, including expertise in carbon savings calculations. 

Examples of work  

LR developed a comprehensive carbon in setting framework, tool, and governance model for a leading American global commodity trading company. The model enables cargo owners to transparently claim emissions reductions from the use of alternative fuels while ensuring financial contributions drive green energy investment. LR developed a Well-to-Wake (WtW) emissions savings calculator to verify and certify emissions reduction frameworks and defined a pricing mechanism for CO₂eq valuation.  

LR also advised the client on governance structures, compliance requirements, and the integration of emissions to align to the client’s sustainability strategy. This initiative allowed the client to support its freight customers in reducing their carbon footprints and helped with the broader adoption of sustainable marine fuels by showing a commercially viable pathway for funding alternative energy sources.. 

LR worked with a leading container shipping company in Southeast Asia to develop a Book and Claim system for its fleet using biodiesel blends. This system allows the client to pass on carbon emissions savings from biodiesel use to cargo owners and freight forwarders, supporting sustainability claims transparently. LR verified emissions reductions using EU RED II and GLEC-aligned methodologies, with data from Proof of Sustainability (PoS) documents. LR developed a B&C Registry Model to track and verify reducing emissions. This gives an accurate calculation, assignment, and retirement of carbon savings tokens, reinforcing the client’s commitment to decarbonisation and sustainability in maritime logistics.