Verified Carbon Positive Yachts Eligible for ITMOs
27 September 2022
Carbon Asset Developer Associates LLC (‘CADA’) is pleased to announce the world’s first fully verified and certified Carbon Positive Superyacht and Passenger Expedition Yacht designs. Capital C Design and Technology Ltd (‘Capital C’) has provided to CADA, designs and specifications that incorporate technology that reduces greenhouse gas (GHG) emissions, use alternative renewable fuels and certified sustainable materials for Superyachts and Passenger Expedition Yachts. The Capital C designs represent a significant milestone for decarbonization in the private superyacht and maritime tourism sector.
To meet IMO specifications for SOx and GHG, the shipping/marine industry are looking at various alternative fuel sources. Capital C yacht designs have been verified by CADA to be Carbon Positive, a world first within the maritime sector and its yachts are eligible for Internationally Transferred Mitigation Outcomes (ITMOs) pursuant to Articles 6.1 and 6.2 of the Paris Agreement (PA). Using the Paris Rulebook Article 6.2, CADA can help Capital C:
Improve the business environment for investments in sustainable yachts.
Improve the competitiveness of Carbon Positive yachts in the private and commercial maritime tourism sectors.
Assist sustainable yacht builders and yacht owners with carbon equity that offset the increased costs to achieve sustainability.
Carbon trading is a significant part of the PA creating international demand and common pricing (exchange rates) for ITMOs. ITMOs will help all marine transportation sectors grow and expand with engines powered by low emission alternative fuels. Yacht builders and owners can utilize liquid and high yield ITMOs, generated from Capital C designs, to offset increased construction and conversion costs from building Carbon Positive. Capital C sustainable yacht designs will drive job creation, technology transfer, and investment for its customers as a result.
Capital C in conjunction with Lloyd’s Register (‘LR’) have announced a Joint Development Project (‘JDP’) of which CADA is pleased to be a contributing member for this landmark maritime decarbonization project. Although the Capital C designs are certified and proven to exceed the current IMO 2050 goals for emissions, the goal of the JDP is to develop a class notation that clearly measure a vessel’s reduced GHG emissions, carbon footprint and its sustainability throughout the vessels designed life or from ‘cradle to grave’. CADA will support the JDP with Its distributed ledger technology, propriety systems and controls, that mobilize investment from public reporting companies and provide the measurement, reporting and verification protocols required to generate, export and purchase ITMOs.
Quoting the LR press release referencing the new notation.
“Obviously at this time it is not possible to have 100% Green vessels but the technology and materials that are available means that Superyachts and Passenger Expedition Yachts can be constructed and operated to meet the current IMO 2030 & 2050 requirements and also be built with the most sustainable materials TODAY. The notation will be developed in a way that it will drive the industry to not just be compliant but eventually exceed levels to be 100% sustainable and ECO friendly by the use of Green renewable fuels, and even having a net zero carbon footprint on the environment through the lifecycle of the vessel.”
Aside from the very clear maritime decarbonization aspects of these Capital C designs, the ability to operate Passenger Expedition Yachts with these capabilities will provide significant environmental and financial benefits within the Small Island Developing States (‘SIDS’). No regions within the world are more effected by climate change than the SIDS, and tourism, generally via ships provides a high percentage of their GDP. Carbon Positive yachts that can operate sustainably within the tourism sector and provide greater fiscal benefits is a game changer within these environs and in all areas that are critical to their existence.
Gary Clyne, CEO of CADA
“CADA is primarily a carbon financing business. We originate, structure, warehouse, and buy and sell carbon offsets, offering targeted solutions to both project owners and offset buyers. CADA combines a 40+ year track record in global financial markets with a deep understanding of low carbon project development utilizing American Renewable Identification Numbers, American IRS 45Q tax credits, California Low Carbon Fuel Standard credits, UN Climate Change Article 6.2 Internationally Transferred Mitigation Outcomes, and custom World Bank Group Carbon Partnership for Market Initiative funding mechanisms. We utilize this expertise to act as a participant in emission collection and avoidance projects internationally and to finance large-scale streams of carbon offsets for high-quality projects. We do this through long-term offtake agreements which provide the financial support projects need to develop and expand. CADA is proud to have been selected by Capital C and Lloyd’s Register as its carbon partner within the JDP.”
Cindy Devina, Founder of Capital C Design and Technology
“On behalf of Capital C, I would like to thank CADA for the tremendous support that we have received from them in assisting us in verifying that our yacht designs are Carbon Positive and qualified for ITMOs and all green finance mechanisms.
Sustainability in Yachting has always been our core DNA in designing and subsequently building the yachts we design. With the ever-evolving, more stringent rules from various maritime organizations to minimize climate change and reduce global emissions, we believe realistic and sustainable yacht designs have a strong foundation to play a role in achieving a more sustainable world.
We are committed to continually improving our designs and technology to create meaningful impacts to both the oceans and lands where all life must exist. Thus far we only have one planet to live on and it is our duty to protect it.”