By Neste Corp. | October 11, 2023
Neste, ISCC and DHL Group joined forces to pioneer and check a system by way of which airways, logistics service suppliers and finish prospects resembling corporates can credibly report the emission discount achieved through the use of sustainable aviation gas (SAF) to cut back their carbon footprint from air journey and transport.
As a part of this collaboration the businesses piloted the ISCC Credit score Switch System, developed by ISCC, an impartial, multi-stakeholder pushed non-profit group with a protracted historical past in provide chain certification. Within the ISCC Credit score Switch System, SAF use and associated sustainability advantages, specifically greenhouse gasoline (GHG) emission reductions, are tracked and transferred through a registry operated by ISCC.
This newly developed system supplies full traceability of SAF transactions and associated sustainability advantages. This ensures that firms buying SAF and airways utilizing the gas, are capable of credibly and transparently declare emission reductions and use them in the direction of their local weather targets, whereas decreasing the danger of incorrect sustainability claims and double counting of SAF volumes and their GHG emission reductions.
In growing the system, ISCC labored carefully with key stakeholders from throughout the aviation sector. The system is designed to align carefully with the necessities set by the Science Based mostly Targets initiative’s (SBTi) aviation steerage for SAF use in addressing organizations’ worth chain (Scope 3) emissions.
Because the main producer of SAF, Neste examined the system with ISCC in cooperation with DHL Group, the main international model within the logistics trade, earlier this 12 months. For DHL Group, SAF is likely one of the key levers to attain its 2030 SBTi authorised decarbonization goal and 2050 net-zero goal – DHL group goals for 30 p.c SAF use by 2030.
The pilot concerned processing the primary SAF transaction by way of the system:
•Neste utilized one in every of its ISCC EU licensed SAF deliveries to DHL Group’s airline EAT and registered the environmental attributes of these SAF volumes, such because the emission reductions achieved, as “credit” within the ISCC registry.
•This enabled EAT, the airline utilizing the SAF, to assert a discount in its personal direct emissions (Scope 1)*, and the corresponding Scope 1 credit score was retired on behalf of EAT making certain the credit score can’t be used once more. The Scope 3 credit score for the achieved discount in oblique emissions was transferred to DHL Teams’ account within the registry.
•As a part of their GoGreen Plus lower-emission transport companies to prospects, DHL Group was then capable of credibly confirm the emission financial savings achieved within the prospects’ worth chain Scope 3 emissions and the corresponding SAF credit score was subsequently retired.
Processing this transaction by way of the registry in step with the principles outlined by ISCC helps Neste in addition to DHL Group and its prospects to make sure full traceability of their SAF transactions and SAF use associated environmental advantages, whereas avoiding misguided double counting of emissions reductions alongside the worth chain.
“ISCC has developed the ISCC Credit score Switch System as a pure continuation of our established and globally used provide chain certification programs. With the ISCC Credit score Switch System, we offer an answer for traceable and credible Scope 1 and three emission discount claims associated to SAF use,” mentioned Prof. Dr. Gernot Klepper, Chairman of the ISCC Affiliation.
“SAF is a key answer to cut back aviation associated greenhouse gasoline emissions however it’s additionally crucial for airways, freight forwarders and shippers, and company end-customers to have the ability to credibly and transparently report their SAF use and associated emission reductions. The brand new ISCC Credit score Switch System is an enormous step ahead because it additionally integrates with present sustainability certification programs,” mentioned Jonathan Wooden, Vice President Business and Technical Administration from Neste’s Renewable Aviation enterprise unit.
“At DHL Group, we’re already utilizing important quantities of sustainable aviation gas to switch kerosine. It is rather vital for us that there’s a registry that ensures transparency and reliability of sustainability claims associated to using SAF. A registry that regulates all mandatory data from gas suppliers in addition to producers and supplies traceability alongside the worth chain is vital for credible transactions and builds the idea for a reliable ebook and declare mechanism,” said Dr. Klaus Hufschlag, SVP Sustainability Reporting & Controlling.
Following the profitable piloting of the ISCC Credit score Switch System, the system is now prepared for public session and might afterwards be utilized by all firms – airways, logistic service suppliers and company end-customers – wishing to make sure credible and clear reporting of emission reductions from using SAF.
Sustainable aviation gas (SAF)
SAF is widely known as a key answer to attain the aviation trade’s objective of net-zero carbon emissions by 2050. By buying SAF for his or her enterprise flights or transports, companies can scale back their aviation-related greenhouse gasoline (GHG) emissions. This extra demand past regulatory necessities mandating SAF use can even stimulate the acceleration of the scale-up in SAF manufacturing.
*) Airways report Scope 1 for direct emissions of gas use, in addition to Scope 3 class 3 “Gas- and Power-Associated Actions Not Included in Scope 1 or Scope 2”.
