Neste, ISCC and DHL Group have teamed up to test a new system for the airline industry to report emissions reductions through the use of sustainable aviation fuel (SAF).
The system will credibly report for airlines, logistics service providers, and end customers such as corporates.
The companies already piloted the ISCC Credit Transfer System, which was developed by ISCC, an independent, multistakeholder-driven non-profit organization. The ISCC system tracks and transfers credits for SAF use and sustainability benefits on a registry operated by the organization. The system was designed to resemble the requirements set by the Science Based Targets initiative’s (SBTi) aviation guidance for SAF use in Scope 3 emissions, and the ISCC engaged stakeholders across the aviation sector.
The system provides transparency of SAF transactions and related sustainability benefits, ensuring companies purchasing and using SAF can claim emissions reductions and use them toward their climate targets.
“ISCC has developed the ISCC Credit Transfer System as a natural continuation of our established and globally used supply chain certification systems,” Dr. Gernot Klepper, Chairman of the ISCC Association said in a statement. “With the ISCC Credit Transfer System, we provide a solution for traceable and credible Scope 1 and 3 emission reduction claims related to SAF use.”
Neste tested the system with ISCC in cooperation with DHL Group earlier this year. DHL Group sees SAF as one of the key levers to achieve its 2030 SBTi-approved decarbonization target and 2050 net-zero target. The company is aiming for 30% SAF use by 2030. Neste is an oil refining and marketing company located in Espoo, Finland, and the leading producer of SAF. DHL Group is a Germany-based multinational package delivery and supply chain management company.
The partnership between the three companies and the focus on SAF comes as the aviation industry has rushed toward investing in the fuel. However, its overall use across the industry is still low.
“SAF is a key solution to reduce aviation-related greenhouse gas emissions but it’s also critical for airlines, freight forwarders and shippers, and corporate end-customers to be able to credibly and transparently report their SAF use and related emission reductions,” Jonathan Wood, vice president commercial and technical management from Neste’s Renewable Aviation business unit, said in a statement. “The new ISCC Credit Transfer System is a big step forward as it also integrates with existing sustainability certification systems.”
However, SAF has also been criticized for its potentially harmful impact on human health.
With the ISCC pilot done, the system is now ready for public consultation before it will be used by all companies, including airlines, logistic service providers, and corporate end-customers.
