COP28: New digital tool to provide corporates virtual access to SAF supplies

A new digital tool called the Sustainable Aviation Fuel Certificate (SAFc) registry was launched at COP28 Dec. 6 aimed at promoting usage of SAF and tracking its impact.

The digital tool created by clean energy nonprofit Rock Mountain Institute (RMI), Environmental Defense Fund (EDF) and Energy Web in collaboration with the Sustainable Aviation Buyers Alliance (SABA), whose members include multinational corporations such as Microsoft, Disney and Meta as well as carriers like United Airlines, the registry will help buying and traceability of SAF, EDF said.

SAFc is a receipts mechanism with a key focus area to track the production, distribution and use of SAFs throughout their life cycle, to give an accurate tally of their emissions impact compared with traditional jet fuels, said RMI.

The digital tool provides a solution to major companies that fly employees and products around the world and want to reduce the climate impact from their air travel. The emissions from travel, part of the "Scope 3" emissions in corporate emissions accounting, often represent a major share of a business' carbon footprint.

The SAFc Registry was creating a throughline from corporate consumers to fuel producers, helping to expand investment in SAF infrastructure and increase supply of low-carbon fuels, said RMI Managing Director Bryan Fisher.

The purchase of SAF certificates would spur fuel producers to invest in SAF production by sending a strong demand signal to the market, said EDF, adding that the other goal was to stimulate the use of SAFs by creating certificates that exist apart from the physical fuel, which are still in short supply and not available at most airports across the globe.

This means that buyers can pay for SAF no matter where they catch a flight. The funds can then be used to pay for SAFs pumped onto planes where the fuel is available, alliance members said in the release. The credit is divided up accurately among the participants, eliminating mistakes such as double counting.

"For corporations and airlines, no other registry offers full transparency and tracks sustainable aviation fuel integrity to ensure high impact in fighting climate emissions," said Elizabeth Sturcken, Managing Director, Net Zero Value Chains, at EDF.

The production of sustainable aviation fuel in 2024 will triple from 2023 levels to 1.875 billion liters, or 1.5 million mt, still a tiny share of aviation's supply needs and governments have more work to do, the International Air Transport Association said Dec. 6. The 2024 level will account for a mere 0.53% of aviation's fuel requirements and 6% of renewable fuel capacity as large shares of renewable fuel capacity coming online are earmarked for other renewable fuels, the IATA said in a statement.

In 2024, S&P Global Commodity Insights estimates global SAF supply will reach 2.13 million mt, of which 2.03 million mt will be SAF produced by refining hydrotreated esters and fatty acids (HEFA). However, global SAF demand consistently lags supply, estimated at 1.24 million mt in 2023 and rising to 2.156 million mt in 2024, S&P Global said.

Platts, part of S&P Global, assessed SAF CIF ARA at $2,809.25/mt Dec. 6, down 2.1% since the start of the month. Conventional jet fuel prices cost less than half as much, with Northwest Europe CIF jet cargoes priced at $813.25/mt, down 6.6% over the same time period.