SustainableAviationFuels:OfftakeManualWHITEPAPERJUNE2023Images:GettyImages©2023WorldEconomicForum.Allrightsreserved.Nopartofthispublicationmaybereproducedortransmittedinanyformorbyanymeans,includingphotocopyingandrecording,orbyanyinformationstorageandretrievalsystem.DisclaimerThisdocumentispublishedbytheWorldEconomicForumasacontributiontoaproject,insightareaorinteraction.Thefindings,interpretationsandconclusionsexpressedhereinarearesultofacollaborativeprocessfacilitatedandendorsedbytheWorldEconomicForumbutwhoseresultsdonotnecessarilyrepresenttheviewsoftheWorldEconomicForum,northeentiretyofitsMembers,Partnersorotherstakeholders.ContentsExecutivesummary3Introduction41Keydefinitions71.1Whataresustainableaviationfuels?71.2HowtoaccountforSAF101.3WhatisaSAFofftakeagreement?122ConsiderationsforairlinesandotherSAFbuyers142.1Introduction142.2Environmentandsustainabilitydepartment142.3Fuelprocurement142.4Finance152.5Maintenance,repairandoverhaul152.6Governmentrelations152.7Legal152.8Corporatecommunications162.9Executivecommittee163Corporatebuyerperspective173.1Introduction173.2ProcuringandcontractingSAF183.3WatchoutsforSAFprocurement203.4RisksinvolvedinSAFscope3emissionsreduction234Supplierperspective:SAFofftaketemplate254.1Introduction254.2Potentialchangestofossiltemplates255Policyexamples:compliance275.1Introduction275.2CORSIAexample28Conclusion29Appendices30Contributors31Endnotes32SustainableAviationFuels:OfftakeManual2ExecutivesummaryFirstMoversCoalition(FMC)aviationmembershavecommittedtoadoptingemissionsreductiontechnologies,includingsustainableaviationfuels(SAF).ItisestimatedthatSAFhavethepotentialtocontributeto65%ofaviationemissionsreductiontoachievenetzeroby2050.1Withtheaimofacceleratingdecarbonizationeffortsinthelead-upto2030,theFMCaviationcommunityhaveproducedthisguideforpurchasingSAFandSAFcertificates(SAFc).Ithighlightskeyconsiderationsandresourcesforfuelproducers,airlinesandcorporatebuyersofSAFandservesasamanualillustratinghowtoprocureSAF.Theintendedaudienceisnon-procurementspecialistsornoviceSAFbuyersseekinginsightintowhatSAFofftakediscussionsentail.MakingsenseofSAFSAFofftakecanbeacomplexventure.AlthoughthereisalotofinformationavailableandrelevanttoSAFprocurementandcontracting,itisquiteafragmentedknowledgelandscape,andtheprocessitselfinvolvesmultipleplayers.Thedocumentcontainsacompilationofkeyresourcesandservesasaone-stop-shopforreadersseekinginformationonSAFtechnology,SAFfeedstockandsustainability,SAFeconomicsandSAFpolicyandregulation.FMCaviationcommunitymembersalsofeaturepracticalexperiencestocallattentiontogapsandaddresskeyquestions.HowtousethisdocumentForsuppliers,thereportlendsabetterunderstandingofthefuelpurchaser’sneedsandalsoallowsthemtoconsiderinterestsofcorporatecustomers.Forairlines,thereportexplainstechnical,feedstock,economicandpolicyrelatedaspectsofSAFtoraiseawarenessandenablesuccessfulofftakeagreements.Finally,forcorporatebuyerswhohavehadvariedexperienceinsecuringSAFscope3credits,thereportsharesbestpracticesforprocuringscope3creditsbydetailingkeystakeholders,watchoutsandaccountingmethodstomakeSAFofftakesmoreaccessibleespeciallyforcompaniesoutsideoftheaviationspace.Ultimately,definingprocessesacrossthevaluechainandsharingbestpracticecancontributetodecreasedtransactioncostsandincreasedefficiencyinsecuringSAFofftake.FMCaviation’sguideilluminatesthepathtowardsa65%emissionsreductionby2050viaeffective,streamlinedsustainableaviationfuelprocurement.SustainableAviationFuels:OfftakeManual3IntroductionTheFirstMoversCoalition(FMC)isagroupofcompaniesthatusetheirbuyingpowertocreatestrongdemandsignalsforinnovativegreentechnologiesinsevenhard-to-abatesectors.Thesesectorsaccountfor30%ofworldwideemissions,andifsubstantialadvancementsincleantechnologyinnovationarenotmadepromptly,thispercentageisprojectedtosurpass50%bythemiddleofthecentury.2DetailsoneachofthecommitmentscanbefoundontheFMCwebpage.Usingdemandsignalstoacceleratedeepindustrydecarbonization.TheFMCpartnersandenablingenvironmentFIGURE1FMCsupportmodelGovernmentsupportfordeepdecarbonizationDevelopmentofcriticalinfrastructureAccesstofinancingsolutionstocatalysesupplydevelopmentCollaborativecommunityoffirstmoversAirlinesandairtransportcompanies:“By2030,wewillreplaceatleast5%ofourconventionaljetfueldemandwithsustainableaviationfuels(SAFs)thatreducelife-cycleGHGemissionsby85%ormorewhencomparedwithconventionaljetfueland/orzero-carbonemittingpropulsiontechnologies.”Airfareandairfreightpurchasers:“By2030,wewillpartnerwithairtransportoperatorstoreplaceatleast5%ofconventionaljetfueldemandforourairtransportwithSAFsthatreducelifecycleGHGemissionsby85%ormorewhencomparedwithconventionaljetfueland/orzero-carbonemittingpropulsiontechnologies.”AviationcommitmentTheFMChassetambitiouscommitmentsforairlines,airfareandairfreightpurchasers:Source:FMC;BostonConsultingGroupSustainableAviationFuels:OfftakeManual4TheFMCpartnerswithrelevantinitiatives,governments,financialinstitutionsandothercompanies;andrecognizestheiractionstocreateanenablingenvironment.AlthoughformulatingpurchasecommitmentsandaggregatingdemandagainstthemiscoretotheFMC,thecoalition’sactivitiesgobeyondthis.Otheractivitiesfocusonsupportingmembersindeliveringontheircommitmentsandmovingtobankabledemandcommitments.ThisSAFOfftakeManualisanexampleoftheactivitiestheprogrammeofferstoitsaviationmembers.Usingdemandsignalstocreateabridgeacrossthe“valleyofdeath”FIGURE2FirstMoversCoalitionDemandsignalsfrompurchasingcommitmentsResourcesavailablefromgovernmentsandprivatesectorResearchanddevelopmentDemonstrationandearlydeploymentDeploymentandcommercializationMaturityoftechnologyAdditionalresourcesrequiredResources“Valleyofdeath”Source:Markham,S.K.,Movingtechnologiesfromlabtomarket,IndustrialResearchInstitute,2002,p.32;FMCandBCGanalysis.Sustainableaviationfuels’essentialroleindecarbonizingaviationSustainableaviationfuels(SAF)arederivedfromsustainableandrenewablesourceswithlowcarbonfootprints,suchasusedcookingoils,forestryresiduesandmunicipalsolidwaste.EffortsareunderwaytodevelopapathwayforproducingsyntheticSAF.Whenusedasjetfuel,SAFcanreducethecarbonintensityofairtravelbyupto100%(infact,itcanevengonegative)overitsentirelifecycle,dependingonthechoiceoffeedstockandtechnologicalapproach.SAFhavesomekeycharacteristicsthatpositionthemasthemostviabletechnologyintheneartermfordecarbonizingtheaviationsector,including:1.Immediateaction:InlinewiththeIntergovernmentalPanelonClimateChange’s(IPCC)findings,theperiodbetweennowand2030iscrucialforemissionreductionifglobalwarmingistobelimitedtobelow1.5˚C.SAFs’compatibilitywithexistingaircraftandfuelinfrastructureeliminatestheneedforsignificantmodificationstoaircraftandairports,easingwidespreadadoption.2.Scalability:Givensustainablefeedstockavailabilityandadequateinvestmentcapital,SAFproductionhasthepotentialtoencompass10%oftotaljetfuelsalesby2030.3.Integrationwithintheaviationvaluechain:Currently,SAFstandsastheonlyviabledecarbonizationsolutionwithintheaviationSustainableAviationFuels:OfftakeManual5industry.Whilehydrogenandelectricflighttechnologiesareexpectedtodeveloponalargescaleinthecomingdecade,theirsuitabilityforlong-haulflightsremainsuncertain.4.Co-benefits:SAFproductionnotonlygeneratesnewhigh-qualitygreenjobsbutalsointroducessignificantlylowerlevelsofsulphurandparticulatematterintotheenvironmentcomparedtofossil-basedjetfuel.TheSAFindustryshouldusefeedstockstopromotewideradoption,createemploymentopportunitiesandenhanceenergysecurityinmanynations.However,asignificantbarriertotherapidexpansionofSAFisitscurrentprice,whichisatleasttwotimesthatoffossiljetfuel.Nonetheless,aseconomiesofscalecomeintoplay,thecostofSAFisexpectedtodecrease.Currently,thecostoffeedstockssurpassesthepriceoffinishedfossil-basedjetfuel.Unlikefossilfuels,feedstocksusedinSAFproductionmayrequireadditionalpre-processingbeforebeingrefined.Moreover,highertransportcosts,blendingrequirementswithconventionaljetfuelandfeesassociatedwithadditionalsafetytestingandcertificationcontributetothepremiumcostofSAF.SustainableAviationFuels:OfftakeManual6Keydefinitions1Criticalinsightstounderstandthepathtoanet-zeroaviationsector.Sustainableaviationfuelsareasafereplacementforconventional(fossil-based)fuelthatcanreducecarbonemissions.Itisalmostchemicallyidenticaltotraditionaljetfuelandcanbecreatedusingdifferentcombinationsoftechnologyandrawmaterials,someofwhichcanabsorbcarbondioxide(CO2).ThisprocessincludescapturingCO2fromtheatmosphereandutilizingrenewableelectricitytoproduceSAF.AchievinganetreductioninCO2emissionswhencomparedtofossilfuelsofbetween60%and100%isfeasible.Today,SAFmustbeblendedwithconventionalkeroseneinratiosofupto50%SAFtoensurecompatibilitywithaircraft,enginesandfuellingsystems.Theaviationindustryisworkingtowardsunderstandinganymodificationsnecessaryforcommercialaircrafttobecertifiedassafetoflywith100%SAFinthefuture.Further,sustainabilityisvitalforassessingSAFandensuringathoroughmethodologyforassessingemissionslifecycleimprovementsandbroadersustainabilityconsiderations.TheeconomicsofSAFremainoneofthekeychallengesforfasteradoption,andpolicyinterventionisseenasimportantforbuildingtheglobalSAFmarket.Thesedays,SAFisthewidelyusedterm,however,insomecasesorolderdocuments,termssuchasbiofuel,renewableaviationfuel,renewablejetfuel,alternativefuelandbiojetfuelmaybeused.ThesetermshavesimilarintendedmeaningstoSAF.SAFtechnologyThetechnologyforproducingSAFhasbeenactivelyworkedonformorethan15years.TherearecurrentlysevenSAFproductionpathwaysapprovedbytheAmericanSocietyforTestingandMaterials(ASTM)International,witheachpathwayrepresentingdifferentprocessesforproductiondependingonthetypeoffeedstocks.Anumberofotherpathwaysarealsogoingthroughtherigorousassessmentprocessfortheirviabilityforuseinaviation.Eachpathwayhaspotentialbenefitssuchasfeedstockavailabilityandcost,totalcarbonreductionorprocessingcomplexityandcost.SomeSAFpathwaysmaybemoresuitablethanothersincertainareasoftheworld,dependingonfeedstockavailabilityandprocessingcapabilities.Allpathways,however,havethepotentialtoenabletheaviationsectortoreduceitscarbonfootprintsignificantly,assumingallsustainabilitycriteriaaremet.SAFfeedstockSustainableaviationfuelcanbeproducedfromawiderangeofbiogenicandnon-biogenicfeedstock.Whilethefeedstockpoolisdiverse,strictcriteriamustbeobservedtobeconsideredsustainable.Theaviationindustryhasbeencarefultopromoteonlysustainablysourcedalternativefuels,toavoidnegativeenvironmentalimpacts.SomeofthefeedstockusedorexpectedtobeusedtoproduceSAFarelistedinthefollowingsection.1.1Whataresustainableaviationfuels?SustainabilityisvitalforassessingSAFandensuringathoroughmethodologyforassessingemissionslifecycleimprovementsandbroadersustainabilityconsiderations.SustainableAviationFuels:OfftakeManual7SAFfeedstockcategoriesTABLE1ConversionpathwayFeedstockcategoriesFat-to-fuelWasteoilsandfats:Thistypicallycomesfromplantoranimalfatsandgreasesthathavebeenusedforcookingandarenolongerusableforfurthercooking(usedcookingoil),oraswastefromfoodproduction(suchastallow).ThisiscurrentlythemostwidelyusedfeedstockforSAFproduction,butsupplyisnotendlessandeventhoughitwillcontinuetoplayaroleinSAF,othersourceswillgrowtoformalargerportionofthemarket.Covercropsorrotationaloilseedcropssuchascamelina,carinataandpennycressthataregrowninrotationwithwheatandothercerealcropswithinthesameyear,whenthelandwouldotherwisebeleftfallow(unplanted)aspartofthenormalcroprotationprogramme.Thisprovidesgrowerswithanopportunitytodiversifytheircropbaseandreducemonocropping(plantingthesamecropyearafteryear),whichhasbeenshowntodegradesoilandreduceyieldsandresistancetopestsanddiseases.Withcamelina,theleftover“meal”fromtheoilextractioncanalsobeusedasanimalfeedinsmallproportions.Carinataisanon-edibleoilseedcropwithsimilarpromise.Waste-to-fuelMunicipalsolidwaste:Carbon-basedwastethatcomesfromhouseholdsandbusinesses.Someexamplesinclude:productpackaging,grassclippings,furniture,clothing,bottles,foodscrapsandnewspapers.Thereisgreatpotentialtousemunicipalsolidwasteasasustainablefeedstock,duetoitsvastsupply.Ratherthansimplydumpingmunicipalwasteinalandfillsite,whereitwillemitmethaneandothergasesintotheatmosphere,itcanbeusedtocreatejetfuelinstead.Cellulosicwaste:Thiscomesfromexcesswood,agriculturalwaste(suchascornstalks),andforestryresidues(branchesandleavesthatarenottradeable).Theseresiduescanbeprocessedintosyntheticfuelthroughprovenchemicalreactions(i.e.theFischer-Tropschpathway)orconvertedintorenewableisobutanolorethanoland,further,intojetfuelthroughthe“alcohol-to-jet”(AtJ)pathway.Otherpathwaysarealsounderdevelopment.Air-to-fuelNon-biogenicfuels:“power-to-liquid”(PtL)typicallyinvolvescreatingjetfuelfromcarbonsourcessuchasindustrialpointsourcewastegasesor,inthefuture,directaircapturedcarbon,combinedwithgreenhydrogenproducedusingrenewableenergypoweredelectrolysers.Alternatively,industrialwastegasescanbeconvertedintoethanolusingbiologicalconversionprocesses,andtheethanolsubsequentlyconvertedintojetfuel.WhiledirectPtLoptionsarebasedontechnicallyprovensteps,theprocessiscurrentlyexpensiveandneedsfurthertechnologicalandcommercialdevelopment.Sun-to-fuelSolarjetfuel(orsun-to-fuel)useshighlyconcentratedsunlighttobreakupwaterandCO2molecules.Theseprocessesdonotrelyonwasteresourcesornon-foodcrops,sothereistheoreticallyanunlimitedsupplyavailable,andthiswilllikelymakeupalargeproportionofSAFproductioninthefuture.Source:USDepartmentofEnergy,USDepartmentofTransportationandUSDepartmentofAgriculture,SAFGrandChallengeRoadmapFlightPlanforSustainableAviationFuel,2022.SAFeconomicsThecostsassociatedwithproducingSAFexceedthoseofconventionalfossiljetfuel.VariouseconomicframeworksexistforestablishingaSAFproductionfacility,includingusingdiversefeedstocksandtechnologypathwaysandincorporatingofftakestructuresorpolicyincentives.Asageneralguideline,theproductioncostofSAFisestimatedbetween1.5timesto3timesthatofconventionalfossiljetfuel,dependingonthematurityofthetechnologyandfeedstocklogistics.ICAOhasproducedaSAF“ruleofthumb”analysis,specificallygeneratingresultsforestimatedtotalcapitalinvestment(forpioneerandnthfacility)andminimumsellingpricefortheproductionfacilitytoachievethehurdlerateofreturn.3Whatarethemajorchallenges?TheadvancementandimplementationofSAFfaceseveralchallengesthatrestrictitsprogress.TheseincludethecostdifferentialbetweenSAFandtraditionalkerosene,theexistingelevatedproductioncostsassociatedwithSAF,thescarcityofcost-effectiveandsustainablefeedstockforSAFandtheinadequateinfrastructureforfeedstockproduction.Additionally,limitedinvestmentandthehighcostsoffinancingtheinfrastructureforSAFfuelproductionposeobstacles.Moreover,competitionforresourcesandincentivesfromothersectorslikeroadtransportandrenewablepowerfurthercomplicatesthedevelopmentanddeploymentofSAF.Thereisalsouncertaintyonsustainabilitycriteriaanddivergingviewsindifferentgeographies(e.g.EUvsUS).UncertaintyonadvancedSAFtechnologiesandfirst-moverdilemma–everyoneknowsmoretechnologiesthanhydroprocessedestersandfattyacids(HEFA)areneeded.Still,investmentintoadvancedtechnologies(especiallypower-to-liquid)isslowduetothefirst-moverdilemmaanduncertaintyregardingtherightsub-route.WhileSAFs’productioncostexceedsconventionalfossilkerosene,feedstockandproductioninfrastructurewillstruggletoattractdebtandequitycapital,andSAFrisksnotbeingprioritized.WhatcanimprovetheeconomicviabilityofSAF?Anynewindustrytypicallyhasuntappedefficiencyimprovementpotential.Thisisoftencalledthelearningcurveoreconomiesofscaleopportunity.ThisistypicallytrueforSAF,withimprovementsinproductiontechnology,lower-costfeedstocksandlarger-scaleproductionfacilitiesbeinggreatopportunitiestoimproveSAFeconomics.ThelargestpotentialtoimproveSAFeconomicsisthroughpolicysupport.SustainableAviationFuels:OfftakeManual8MainkeypathwaystoproduceSAF,withuniquechallengesandpotentialTABLE2Source:FMCandBCGanalysis.SAFpolicyThepurposeofapolicyistypicallytochangebehaviouroranoutcome.InthecaseofSAF,productionfacilitiesarenotbeingbuiltbecausetheriskofnotachievingareturnontheprojectishigh.SomeoftheserisksarewhetherthereisamarketfortheSAF,howpredictablethefeedstockandconstructioncostsare,thecostofcapitalornewtechnologiesthatmightdisplacethelong-runvalueofSAF.Long-term,stablepoliciesarenecessarytocreateasustainedmarketforSAF.ThebestpoliciesforSAFdevelopmentwilllikelyvaryforeachstateandregionbasedontheiruniqueclimate,resources,political,socialandeconomicfactors.Inthecaseofstateswithalreadywell-developedrenewableenergypolicies(e.g.forgroundtransport)orcarbonlegislation,theremaybeanopportunitytoincludeSAFinthoseexistingmechanisms.AnyofftakeagreementforSAFshouldcarefullynotethepolicyframeworkintheconstructionjurisdictionandwheretheproductmaybeused.ApplyingpolicyadvocacyinthecontextofofftakediscussionisoftenrelevanttofindthemostoptimaleconomicconditionsfordevelopingaSAFproject.4HEFAAlcohol-to-jetGasificationFischer-Tropsch(FT)Power-to-liquidOpportunityDescriptionMaturetechnology:Safe,provenandscalabletechnologyTechnologyincommercialpilot:Potentialinmid-term,givenhighergreenhousegas(GHG)reductionpossiblevsfossiljetfuel;however,significanttechno-economicaluncertaintyTechnologyindevelopment:Proofofconcept2025+,primarilywherecheaphigh-volumegreenelectricityisavailableFeedstockWasteandresiduelipids,purposelygrownoilenergyplantsAgriculturalandforestryresidues,municipalsolidwaste,purposelygrowncellulosicenergycropsCO2andgreenelectricity:unlimitedpotentialviadirectaircaptureCostdriversPriceoffeedstockaccountsformajorityofproductioncostandismarket-driven,notlikelytogetcheaperCostof(green)hydrogenpresentsthebiggestopportunityforHEFAproductioncostimprovementRefiningethanolintojetfuelpresentsbiggestcostbucketBothsteps(ethanolproductionandjetproduction)arecapex-intensivewithdeclinepotentialinrefiningduetolearningeffectsGasification-FTproductioncostislargelydrivenbycapitalcostThisprocessishighlyflexiblewithregardstotypeoffeedstockused,leadingtowideprojectedrangebuthighpotentialcostsavingsMostuncertaintyduetorangeoftechnologiesanddivergingcostofgreenelectricity,aswellasuncertaintyonpoint-sourcecarboncaptureSyntheticfuelsshouldenablesignificantcostreductionpotential,drivenmainlybylower-costelectrolysersandscaleeffectSustainableAviationFuels:OfftakeManual9TrackingtheenvironmentalbenefitsofSAFisimportantandmustbeconsideredbeforeanofftakeagreement.Therearevariousestablishedmethodsfordoingthis,butthefourmostcommonare:–Identitypreservation–Physicalsegregation–Massbalance–Bookandclaim.IdentitypreservationisunrealisticforSAFatanyscale.Itismoresuitedtosomethingboutiqueinthefoodindustry,whereonemightliketoknowtheexactpaddockorpieceofearththeirfoodisfromandeverythingaboutit.1.2HowtoaccountforSAFSAFaccountingapproachesTABLE3PhysicalsegregationMassbalanceBookandclaimDescriptionAphysicalsegregationapproachrequires“separation”ofdifferentproductstreams(e.g.certifiedmaterialfromnon-certifiedmaterial)throughoutthesupplychain.Thischainofcustodyapproachdeliversconsignmentsthatphysicallycontain100%ofthespecificproductstream,buttheycanbefromavarietyofsources.Itdoesnotnecessarilyprovidetraceabilitybacktothesourceofthefeedstock(e.g.aspecificfarmorplantation)butcould.Physicalsegregationcaneitherbebylocation(e.g.separatestorageordistributionchannels)orbytime(e.g.batch-wiseprocessingordelivery)Amassbalanceapproachallowsproductswithdifferentcharacteristicstobephysicallymixedbutkeptadministrativelyseparate(thinkHEFASAFfromusedcookingoil,wheretheoilhasbeencollectedfromvariousrestaurants).Ateachstepinthesupplychain,companiesdonotsellorproducemoreproductswithspecifiedcharacteristicsthantheysourced.MassbalanceisrequiredintheEUunderREDII.5Abookandclaimapproachenablesthedecouplingofthephysicalfuelfromenvironmentalattributesassociatedwiththefuel.ForthevolumeofSAFthatisclaimedtobeused,itcanbeclaimedthatsufficientmaterialwiththosecharacteristicshasbeenaddedtothesystem(consideringrelevantconversionfactors).Amorecomplexapproachmightinvolveapplyingvaluetoscope1and3emissions,encouragingnon-physicalfueluserstoparticipateinthesetransactions.CarbonOffsettingandReductionSchemeforInternationalAviation(CORSIA)considerationsCORSIArecognizeseligiblefuels.MassbalanceisacceptedunderCORSIAwiththe“controlpoint”beingtheblendlocation,typicallytheairport.CORSIAalreadyincludessomeelementsofbookandclaimchainofcustodyafterSAFblending.ComparisonPhysicalsegregationiscostprohibitiveduetogreenpremiumassociatedwithSAFcompoundedbydualphysicalinfrastructure.MassbalancemeansmorecontrolpointscomparedtobookandclaimandmorelimitedsupplyoptionsforSAFproducersresultinginsomeSAF(orfeedstocks)beingshippedaroundtheworldtodemandgeographies.BookandclaimoffersmaximumflexibilityfortrackingtheenvironmentalbenefitsfromSAFwithanopportunitytoaccelerateuptakebyinjectingSAFintotheaviationfuellingsystematthemostlogicallogisticallocations(especially2025-2035whilesupplyscales)inamannersuitedtoincorporatecorporatedemand.SustainableAviationFuels:OfftakeManual10BookandclaimchainofcustodymodelFIGURE3SAFBCUregistrationNoclaimSAFBCUretirementNoclaimSAFphysicalFossilJetSAFBook&Claimtransaction1RSBJetfuelsupplierAirportSAFproducerSAFsupplierRegistryAirportJetfuelsupplierAirportGHG/sustainabilityclaimbyairline(scope1)andcorporateenduser(scope3)SAFphysicalFossiljetSAFbookandclaimtransactionBookandclaimunit(BCU)–1milliontonnes(MT)ofneat,certifiedproducti.e.1.25SAFBCU–1.25SAFMTSource:RoundtableonSustainableBiomaterials,RSBBook&ClaimManual,2021.SustainableAviationFuels:OfftakeManual11PotentialglobalbookandclaimdesignconceptFIGURE4AirportAScope1Scope3claim...EnvironmentalclaimSAFrefineryFossilrefineryScope1AirportBCentralregistrydatarepositoryandtransactionfacilitationmechanismIdeallyanairlinecanmakeaclaimundertheregulatorysystemoftheirchoicePhysicalfuelSAFandfossilGovernment$$$$$ASAFofftakeagreementisanagreementbetweenasupplierandabuyertopurchaseavolumeofSAFproducedbyaplant,eitherestablishedorunderconstruction.Thisagreementcantaketheformofapurchaseagreementoraservicecontract.Itshouldincludeseveralterms,butattheveryleast,itmustcover:–Recordoftheproducerandthebuyer–Informationontheairportswheretheproductwillbeused–Offtakeproductionperyear(SAFvolume)provided–Timehorizon.ItisnotuncommonformajorairlinestohaveofftakeagreementswitharangeofdifferentsupplierstomakeuseofasmanystakeholdersaspossibleintheSAFproductionindustry.Thishelpstodiversifyriskwhileensuringenoughfeedstockisavailabletosuittheirneeds.ICAOmaintainsacomprehensivelogofdisclosedofftakeagreementsforSAF.Thisrecordincludesdetailsoftheproducerandthebuyer,alongwithsupplementaryinformationregardingtheairportswheretheSAFwillbeused.Whenaccessible,italsopresentsdataontheannualofftakeproduction.Figure5providesanoverviewofpubliclydisclosedofftakeagreementsinvolvingglobalSAFproducersand/orairlines.ItislikelythatthedemandforSAFwillonlyincreaseinthecomingyears,particularlyaslegislatedSAFmandatesinEuropeenterintoplace.1.3WhatisaSAFofftakeagreement?Source:InternationalAirTransportAssociation(IATA),2019Note:OncethefuelenterstheairportitcanbedistributedtothewingviaJointUserHydrantInstallation(JUHI),akintoafuelfarmbookandclaim.SustainableAviationFuels:OfftakeManual12SAFofftakeagreementsoverthelastdecadeFIGURE561116212631364111226220132014201520162017201820192020202120222023YearNumberofannouncedofftakeagreements5523421242023rankslowbecauseitonlyrepresentsthefirstfourmonthsoftheyear.Source:“ICAOSAFOfftakeAgreementTracker”,ICAO,2023.SustainableAviationFuels:OfftakeManual13ConsiderationsforairlinesandotherSAFbuyers2SAFhaveseveraluniquecharacteristicsthatneedtobeconsideredbyairlinesduringprocurement.EnteringintoadiscussionfortheprocurementofSAFcaninitiallyseemstraightforward.Afterall,airlineshavedeepexperiencebuyingconventionaljetfuelwhilenegotiatingpricesandlogistics.However,SAFhaveseveraluniquecharacteristicsthatneedtobeconsideredinanoverallnegotiation,andthiswilltypicallyinvolveanexpandedgroupofairlinestakeholdersrelativetothetraditionalconventionalfossilfuelprocurement.WhencommencingresearchorpreliminarydiscussionforapotentialSAFofftake,itisvaluabletoincludealltherelevantstakeholdersfromthestart.Ataminimum,abasiclevelofthefundamentalsofSAFisimportantandcanbeconsolidatedintofourmajorthemes:–SAFtechnology–SAFfeedstockandsustainability–SAFeconomics–SAFpolicyandregulation.Thisdepartmentshouldbeinvolvedfromthestartandwilllikelyhaveidentifiedthepotentialofftakeopportunity.Specificexpertiseforunderstandingsustainabilitymetricsandregulationwillbeessential.Thesustainabilityexpertshouldleadinassessingcriteriasuchastheappropriatenessoffeedstockandwhatsustainabilitycertificationshouldapply.Theywillalsoberelevantforsustainabilityregulationandcompliance.Thesustainabilityexpertwilllikelybetheoutward-facingexperttoaddresswhyaparticularofftakeagreementwasstruckandhowthiscontributestotheoveralldecarbonizationstrategyoftheofftaker.Thisteamwillhavetheskillsandexperienceforexecutingconventionalfossilfuelofftakeandlogisticssupplyagreements.SomeoftheSAFofftakeconsiderationswillbeidenticaltoaconventionalfossilfuelofftake,andthefuelprocurementexpertswillneedtoworkcloselywiththesustainabilityexpertsthroughouttheofftakeprocess.Thefuelprocurementexpertswillleadontraditionalenergyrelationships,blendingcriteriaandcompliancewithtechnicalfossilfuelspecifications.Typicallyfuelprocurementwillnegotiatefueldeliveryterms,particularlywherevariablepricingappliestologistics.2.1Introduction2.2Environmentandsustainabilitydepartment2.3FuelprocurementSustainableAviationFuels:OfftakeManual14Maintenance,repairandoverhaul(MRO)isoftentheoverlookeddepartmentinaSAFofftakeastheyaretypicallynotexplicitlyrequiredforsigningtheagreement.However,itislikelythatinformationaboutapendingagreementwillbemorewidelysharedbeforesigningtheagreement,which,ifMROhasnotbeenadequatelyinformed,canpromptquestionsincluding:Willthisimpactthemaintenancecycleoftheaircraft?Arethereperformanceissues?Or,isthisfuelsafe?Thesearesimplebutimportantquestionstoaddress,andMROleadersareimportantmemberstoincludeintheofftakeawarenessfromthestart.Increasingly,SAFuseisbeingrequiredorwillberequiredinmanyjurisdictions.ReFuelEUisoneexamplethatwillimpactmanyaircraftoperatorsfrom2025.Further,SAFisincludedasaneligiblemethodtoreduceacomplianceobligationunderCORSIA.Todate,manyoftheseregulationshaveslightvariationsregardingtheeligibilityoffeedstockorthresholdsforcarbonintensityreductionorevenacceptedmethodologyforcalculatingthelifecycleperformanceoftheSAF.WhilegovernmentrelationswillnotnecessarilybeinvolvedintechnicalreportingandverificationofSAF,theycanplayavaluableroleinpolicy-makerinteractionsandadvocatingformutualrecognitionandharmonizationofstandards,reducingcompliancecomplexityandinefficiencyforaircraftoperators.TheairlinelegalexpertswillbeessentialintheSAFofftakeprocess.Unlikeatraditionalfossiljetfuelofftakeagreement,aSAFofftakecanhavesignificantlymorenegotiatedvariablessuchasfeedstockconditions,sustainabilityconditions,volumeandtimeframevariables,complianceandregulatoryconditions,andspecificfinancialconditions,potentiallyincludingprojectequityandassociatedoff-rampclauses.Thedeeperthesubjectmatterunderstandingfromthelegalteam,thefastertheagreementwillproceed.ItisrecommendedthatlegalengagewiththeenvironmentandsustainabilityexpertsearlyintheofftakeprocesstobuildabasicSAFknowledgefoundation.2.5Maintenance,repairandoverhaul2.6Governmentrelations2.7LegalIncludingtheairlinefinanceteamearlyinthepotentialofftakediscussionisimportantastheywillfinancethetransactionandwanttounderstandpotentialsupplyorcurrencyrisks.Someairlinesimplementhedgestoprotectagainstfuelpricevolatilityorexchangeratemovements.WestTexasIntermediate(WTI)orBrentcrudeiscommonlyusedtodayasaproxyforjetfuel,andderivativeorfuturescontractscanbestructuredtoprotectagainstlargepricemovementsinjetfuel.AsSAFtransactionsbecomelarger,treasuryteamswilllikelyseektounderstandthepricedriversofSAFandwhetherthesecanbehedged.Additionally,itisworthnotingthatthetermofaSAFofftakeagreementhasthepotentialtobelongerthanthatofaconventionalfossiljetfuelofftakeagreement.Thisaspectmakesitaninterestingconsideration.2.4FinanceSustainableAviationFuels:OfftakeManual15Whenanairlineprocuresitsannualjetfuelneedsasfossilfuel,itwillnotbeaccompaniedbyapressrelease.However,becauseSAFaresocloselylinkedtotheaviationindustry’sdecarbonizationstrategyandbecauseSAFarestillrelativelynewandofteninvolveless-knownproducersusingnoveltechnologyandfeedstock,companiessharethisnewsviaapressrelease.Furthermore,corporatecommunicationwillbethecoordinatingcompanyvoiceformediaenquiriesortheinclusionofdetailinannualreportsorexecutive-levelpresentations.ItisamajoradvantageifthecorporatecommunicationteamhasafoundationalunderstandingofSAF,especiallyunderstandingsustainabilityandfeedstockandhowSAFalignwiththewholeoftheindustrydecarbonizationstrategy.2.8CorporatecommunicationsItcanbeeasytooverlooktheairlineexecutivecommitteeuntilthelaterstagesofanofftakediscussion,althoughwithmanyairlinesnowhavinganexecutive-levelchiefsustainabilityofficerandSAFgenerallybeingacoreelementofstrategy,thisislesslikelybutremainsanimportantpoint.Particularlyforanairlineengaginginthefirstofftakediscussion,itisvitaltohaveseniormanagementsupport,especiallythechiefexecutiveofficer,chieffinancialofficer,chiefoperationsofficerandchiefsustainabilityofficer.Whiletheexecutivecommitteeareunlikelytonegotiatethefineprint,theywillbeinterestedinsomedetailandalotmorethanaconventionalfossilfuelofftake.HelpingtheexecutivecommitteebuildfoundationalSAFknowledgeearlyintheSAFofftakeprocesswillexpeditethetimetoreachanagreement.2.9ExecutivecommitteeSustainableAviationFuels:OfftakeManual16Corporatebuyerperspective3Corporateslookingtoreducetheirscope3emissionscandemonstratelong-termdurabledemandforSAFanditsenvironmentalbenefits.TheinvolvementoftheprivatesectoriscrucialinpromotingtheadoptionofSAF.Corporatetravellersrepresentbusinesseswhoseemployeesfrequentlyengageinairtravelusingcommercialairline-operatedaircraft.Ascompaniesseekwaystotacklescope3emissionswithintheirsupplychains,agrowingnumberhavedemonstratedtheirwillingnesstocontributefinanciallytowardsemissionsreductionbyusingSAF.FromoffsettingtoinsettingIncontrasttooffsetting,whichfocusesonemissionsreductionorpreventionthroughinitiativesliketreeplantingorcleanercookingmethods,insettingoffersamoredirectapproachtotravellers.BypurchasingSAF,travellerscandirectlycontributetoeliminatingemissionsthroughouttheaviationlifecycle.UsingSAFinflightsreplacesconventionaljetfuel,ensuringthatcarbonstoredinfossilfuelsremainsuntouchedunderground.Furthermore,anyCO2generatedduringSAFcombustionisabsorbedduringtheproductionprocessitself.Insetting,asaresult,directlysupportsthedecarbonizationoftheaviationsector.7HowtoinsetwithSAF?AnumberofairlinesprovidepassengerswiththeopportunitytobuySAFdirectlywhenmakingtheirbookings.Additionally,businessjetusersmaybeabletopurchaseSAFdirectlyfromtheirfuelsupplieratselectairports.AnotheravenueforSAFprocurementisthroughspecializedpurchaseplatforms,whereconsumerscancalculatetheirtravel-relatedemissionsandchoosethepercentageofemissionstheywishtomitigatebypurchasingSAF.ThesededicatedpurchasesitesofferaconvenientmeansforindividualstoactivelyparticipateinreducingtheircarbonfootprintthroughSAFuse.BestpracticesfromFMCmembersFirstMoversCoalitionaviationmembershavehadvariedexperienceinsecuringofftakeforSAFgenerallyandSAF85inparticular,aprocesswhichrequiresaclearunderstandingofproductionpathways,feedstockandlifecycleanalysis(LCA).AcceleratingtheuptakeofSAF85uptakeisheavilydependentonstreamliningmemberinteractionwithsuppliers.ExchangingbestpracticesfrompriorSAFpurchaseswillhelptodecreasetheassociatedtransactioncostsofsecuringnewofftakes.Inthissection,bestpracticesfromFMCmembershavebeensourced.3.1IntroductionCompaniesalwaysaskhowmuchSAFshouldIbuy?Andtheanswer,always,mustbe–whattheclimatesciencedictates.ConvertcarbontogallonsofSAF(~1milliontonnesofCO2equals~112gallonsofHEFA-basedSAF)andreplaceapproximately50%ofjetfuelwithSAFby2030and100%by2050,dependingoncompany-specifictrajectoriesandscience-based/net-zerotargets.IfSAFprocurementatsuchhighlevelsisnotimmediatelyfeasibleforyourcompany,thenstartsmallandscalefast–itiseasiertobuildthebusinesscasebaseduponreal-lifeexperience.TheambitionssetforthbyCleanSkiesforTomorrowtargeting10%SAFby2030andFirstMoversCoalitiontargeting5%of85+SAFby2030–aregreatguideposts.Thereisnotimelikethepresent,toinvestimmediately,forhighquantityandqualitySAFtoexistinfuture.NoraLovellMarchant,Vice-President,GlobalSustainability,AmericanExpressGlobalBusinessTravelSustainableAviationFuels:OfftakeManual17Whatisascope3creditforSAF?8Byusingscope3credits,companiescanattainGHGemissionsreductionsfortheirairtransportactivitieswithouttakingownershipofthephysicalSAForbeingresponsibleforitssafetyconsiderationsandliabilities.ThisdecouplingofthephysicalSAFfromitsenvironmentalattributeseliminatestheneedtomanageadministrativetasks,orbeartransportcostsrelatedtodeliveringSAFfromtheproductionsitetotheairportaviationfuellingsystem.Inessence,thisapproachallowsfirmstobenefitfromemissionsreductionsassociatedwithSAFwithoutthelogisticalandoperationalburdenstypicallyassociatedwithitsphysicalhandling.Theseguidelinesonlyapplytocorporatetravellersthatmakeuseofcommercialairlines.Inthecaseofcompanieswithprivateaircraft,themethodologydiffers.Thissectionprovidesrecommendationsandstep-by-stepinstructionsforcorporateswillingtoflyonSAFinexchangeforscope3credits.Howdoesasustainableaviationfuelcertificate(SAFc)scope3creditwork?Example:Neste’scorporatebuyingprogrammeBOX1BOX2–ThefuelproducergenerateseligibleSAFfromsustainablefeedstocksandisissuedwithacorrespondingnumberofSAFcbasedoneitheravolumetriccalculationoranemissions-basedcalculation.–TheproducercanthenselltheactualSAFproducedandthevirtualSAFccreditthatwasissuedseparately.–TheSAFbuyercanclaimtheemissionsreductionvalueofthesustainablefuelitselfonceconsumed(scope1),dependingonlocalregulations.–TheeventualbuyeroftheSAFc–anairtransportcustomersuchasacorporatecanretirethecertificateandclaimtherelatedscope3emissionsreduction.–SAFchelpsaddressthesupplyanddemanddeadlockthatislimitingthegrowthofSAF,catalysingadditionaldemandforSAFbygeneratingnewfundingthatcanbeusedtocoverthispremium.Source:WorldEconomicForum,SustainableAviationFuelCertificate(SAFc)EmissionsAccountingandReportingGuidelines,2022.Companiescontractscope3creditswiththefuelproducer(Neste),paytheSAFpremium,andthenNestewilldeliveritsSAFtopartnerairlines.Whiledoingso,Nesteprovidesvisibilityofimpacttoitscustomersthroughreportinganddocumentation.Source:Neste’scorporatebuyingprogramme;Freed,Jamie,“Corporatetravelpropelsboominsustainableaviationfuel”,Reuters,8December2022,https://www.reuters.com/business/aerospace-defense/corporate-travel-propels-boom-sustainable-aviation-fuel-2022-12-07/.Asdiscussedintheprevioussection,thefirststepisdistinguishingbetweenwhatisbeingbought:thephysicalSAForitsenvironmentalattributethroughascope3credit.Theprimaryemphasisformostcorporationswillbeonobtainingscope3creditsfortheenvironmentalattributesofSAF,whiletheownershipofthephysicalfuelvolumeremainswiththeproducers/suppliersandairlines.Thispreferencearisesfromtherecognitionthatinvolvingorganizationsoutsidetheaviationindustryinthephysicalfuelsupplychainisbothimpracticalandburdensome.Therefore,corporationschoosetofocusonsecuringtheenvironmentalbenefitsofSAFthroughscope3creditswithoutassumingthecomplexitiesassociatedwithmanagingthephysicalfuelsupply.CorporateprocurementofSAFisacomplexprocessinvolvingseveralplayersthatrangefromhigh-levelexecutivestolegaldepartments.Assuch,anextensiveinternalalignmentisnecessaryforSAFinvestments,whichcanbetime-consuming.3.2ProcuringandcontractingSAFSustainableAviationFuels:OfftakeManual18KeystakeholdersforcorporatebuyersofSAFTABLE4Chiefexecutiveofficer(andbroaderexecutivecommittee)Toneatthetopmissioniscritical.Ifyoudon’thaveC-suitebuy-inyet,thenbuildthebusinesscaseforyourexecutives.–Secureconsensusamongasmallcohortofseniorleadersbeforepitchingtothechiefexecutiveofficer.ChiefsustainabilityofficerSAFhelpsyourcompany–andtheworld–achievescience-basedandnet-zeroGHGemissionsreductiontargets.–Notethatachiefsustainabilityofficerwouldalsohavequestionsaboutbiodiversityandcommunityimplicationsaswellassustainabilitycriteriaandfoodsupply,forexample.Ifyoudon’thavethisexpertise,thereareplentyofconsultantsandnon-governmentalorganizationsready,willingandabletohelpyou,e.g.SustainableAviationBuyersAlliance(SABA).–Involveatleastonepersonfromthereportingsideofthecompanytoensurethatproperemissionsreductionaccountinganddisclosuresoccur(includingaudittrail).ChieffinancialofficerSAFisapremiumproductthatwillrequireasignificantinvestment.–OneoptiontofundSAFistoimplementaninternalcarbonpricingtocreateaself-sustainingbudgetandfundingmechanismforSAFandotherdecarbonizationsolutions.–CombinethepremiumpriceofSAFwithinyourscience-based/net-zerotargetsandcarbonpricingtoaccountandbudgetforreductions,offsets/insetsandremainingremovals.ProcurementdepartmentSAFcanbeprocuredviaairlines,fuelproducersandserviceproviderssuchastravelmanagementcompaniesorlogisticsserviceproviders.–AdiversifiedportfoliocanhelpmitigateprocurementriskbecauseSAFsupplyisscarceandprojectscangetdelayedorcancelled.DependingonthevolumesandLCA,SAFmaynotbeavailablefor12to24monthsfurtherunderscoringtheimportanceofgettingstartedassoonaspossibleonprocurementandcontractingduetolimitedsupplyandtimingdelays.–PurchasingSAFdoesnotnecessarilyrequireaformalbiddingprocessasSAFcanbeimmediatelyprocuredviayourexistingbusinesspartners.CommercialdepartmentsPerforma360°reviewofyourclients,investmentsandventures,vendorsandsupplierstoidentifypartiesalreadyproducing,supplying,financingordevelopingSAFandrelatedtechnologies.LegaldepartmentSAFcontractingislegallycomplicated.Ifitgoeswronginthefirstcoupleofinstances,itmaytaintthewholemarket.Itisworthtakingthetimetogetitright.–Engagethelegaldepartmentfromtheveryfirstmoment.Traveldepartment–Yourheadoftravelhasprobablyalreadysortedthis,sobesuretoengagethem.SustainableAviationFuels:OfftakeManual19KeyconsiderationsbeforepurchasingSAF:BOX3a.NotallSAFarethesame:sustainabilitycriteriab.Claimingemissionsreductionisamulti-stepprocessc.Emissionsaccountingandreportingd.PhysicalSAFarenotavailableinallairports(yet)e.CO2calculationsvaryf.Thepricemayseemhigh(becauseitcurrentlyis)g.Stakeholderalignment3.3WatchoutsforSAFprocurementa.NotallSAFarethesame:sustainabilitycriteriaSAFdescribesnon-conventional(fossil-derived)aviationfuelsproducedfrombiological(plantoranimalmaterial)andnon-biologicalsources(e.g.municipalwasteorwasteCO2).SAFaretypicallyproducedusingarangeoftechnologicalpathwaysandfeedstocks.SAFareknownas“drop-in”fuelsbecauselittletonochangeneedstobemadetoaircraftorinfrastructure,andtheycanbeblendedwithconventionaljetfuel.ToproduceSAF,theindustryneedstotapintoarangeofoptions,asnosinglesustainablefeedstockwillanswereveryneed.Giventherangeoffeedstocks,productionmethodsandlocations,thefinalemissionreductionofagivenbatchofSAFmaythereforediffer.However,oneofthebenefitsofpurchasingSAFthroughabookandclaimsystemisthatallofthisisconsidered.ThevolumeofSAFpurchasedisadjustedtomatchtheCO2theflightgenerates.Considergettingthird-partysupporttonavigatecomplexityandimprovetransparency,giventhatthisspaceisconstantlyevolving.b.Claimingemissionsreductionisamulti-stepprocessManytravellers,especiallycorporatetravellersandtheirorganizations,willneedtoprovideproofofCO2reductionformandatoryorvoluntaryemissionsreportingprocedures.SAFcertificatesarethewaytodothat.SomeSAFproducersandairlinesprovidecompanieswiththeoptionofreducingairtransportemissionsthroughdirectSAFcreditspurchase.AcertificateofcreditfortheCO2reductionshouldbeavailableoncetheSAFordervolumehasbeenused.CorporatesselectandcommittopayingforanannualSAFvolumebasedontheirtargets.Alldeliveryandemissionclaimsareverifiedbyanindependentthird-partyauditor,witheachmemberreceivinganannualimpactreport.PurchasersshouldbeawarethatSAFsuppliesarelimited,andassuch,itmaytakeseveralmonthsfortheSAFpurchasedtobedeliveredtoanairportandusedinanaircraft.Itis,therefore,importantthatcorporatetravellersinparticularcheckthatthechosensupplier(airlineorpurchaseplatform)will:1.Issueacertificate2.Dosowithinatimeframethatmeetscorporateorpersonalreportingrequirements.c.EmissionsaccountingandreportingCorporatesshouldaccountforandreporttotalbusinessairtravelemissionsunderscope3category6,whichshouldcompriseLCAemissionsoftheassociatedairlines.Theemissionscalculationshouldbebasedontheconsumptionandlifecycleemissionsofconventionaljetfuel.Thedatausedinthecalculationwillbebothactivity-basedprimarydataaswellasthird-party-providedsecondarydata.SomesamplecalculationscanbefoundinAppendix1oftheSustainableAviationFuelCertificate(SAFc)EmissionsAccountingandReportingGuidelines.CarbonaccountingvsfinancialaccountingSAFareaccountedforuponconsumption;whenthefuelisburnedinanaircraft.–EngageyourauditandfinanceteamsearlyandoftentoascertainhowyourcompanyplanstoaccountforSAFonanannualbasiswithrespecttoconsumptionandexpenditureonfiscaltimelines.Theseanalysestaketimebecausecarbonaccountingandfinancialaccountingarenotthesame.Additionally,itisworthconsideringthatSAFscope3reductionsarenotnecessarilyaccountedPurchasersshouldbeawarethatSAFsuppliesarelimited,andassuch,itmaytakeseveralmonthsfortheSAFpurchasedtobedeliveredtoanairportandusedinanaircraft.SustainableAviationFuels:OfftakeManual20forwhentheSAFisburned–youcancarrythecertificatetoclaimemissionsreductions.–Inordertoenablethis,thedevelopmentofstandardizedaccountingandreportingguidelinesisofutmostimportance.ThiswillfacilitatetherecognitionanduseofSAF’senvironmentalattributeswhileensuringenvironmentalintegrityandpreventinganypotentialadverseconsequences.–IncorporatingSAFscope3creditsintointernationalGHGaccountingstandardssuchastheSBTi9andGreenhouseGasProtocol(GHGP)isimportanttoacceleratethespeedandscaleofinvestmentrequiredtodecarbonizetheaviationsectorandothers.Ultimately,theexpectationisthatSAFscope3creditswillbecomethego-tooptionforinstitutionalairtransportcustomerstoaddresstheirairtransportemissions,increasingtheuseofSAFsanddrivingdownairtransportemissions.d.PhysicalSAFarenotavailableatallairports(yet)SAFarecurrentlyproducedinalimitednumberoflocationsandnottransportedwidely(doingsowouldincreaseitslifecycleemissions).Thismeanstheyarenotavailableatallairports.Asaresult,theindustryusesabookandclaimsystem.Thisissimilartothecommonapproachofpurchasing“green”electricity.Therearetwoimpactsofpurchasingviaabookandclaimscheme.1.WhileSAFmaynotbeavailableforthetravellers’specificflight,thepurchaseputsthevolumeofSAFconsumedintotheglobalfuelsupply.Therefore,thisdisplacesthepurchaseofconventionalfuel,reducingthevolumeoffossilfuelsbeingburntandtheassociatedemissions.2.AnySAFpurchasedalsohelpsstrengthendemonstrabledemand,ultimatelyleadingtoasystemicincreaseinthevolumesofSAFproduced.ForfurtherinformationonthepurchaseofSAFandhowbookandclaimsystemsenablethesekindsofpurchases,referto:–WorldEconomicForum,PoweringSustainableAviationThroughConsumerDemand:TheCleanSkiesforTomorrowSustainableAviationFuelCertificate(SAFc)Framework,2021.–WorldEconomicForum,SustainableAviationFuelCertificate(SAFc)EmissionsAccountingandReportingGuidelines,2022.e.CO2calculationsvaryAirlinesandpurchaseplatformstypicallyestimatetheCO2emissionscausedbythefossilfuelneededforaparticularflightandbringtherespectiveamountofSAFintoairlineoperationstofullyaccountforthoseemissions.However,theexactmethodsusedtocalculateCO2andthevolumeofSAFtopurchaseforagivenflightmaydifferacrossplatformsorairlinesbasedonthevariablesincludedinthecalculations.VariablesthatmayinfluencethisincludethetypeofSAF,fareclass,routingandaircrafttypetonameafew.BecarefulhowmuchCO2reductionyouclaimSAFarecurrentlyproducedinalimitednumberoflocationsandnottransportedwidely(doingsowouldincreaseitslifecycleemissions).SustainableAviationFuels:OfftakeManual21Calculatingscope3emissionsFIGURE6Massoffuelconsumptionallocatedtoorganizationbyitsaviationsupplier(s)EmissionsfactorperfueltypeDependingonthetypeoffuel:1.JetkerosenekgCO2/kgfuel2.LCASAFkgCO2/kgfuelHigherprecisionCurrentconsiderations–Dataavailabilityfromsuppliers–Higherprecision,butcarefulaccountingrequiredtoavoiddoubleclaimingacrossscopes1and3SUMpertraveltype(typicallyshort,mediumandlonghaul+economy,premiumeconomy,businessandfirst)ofdistancetravelled(peremployee)EmissionsfactorpertraveltypeEither:1.Primarycarrierspecifiedvehiclespecificemissionsfactor(kgCO2e/vehicle-kmorpassenger-km)2.Secondaryemissionsfactor(e.g.ICAO)(kgCO2e/vehicle-kmorpassenger-km)Absolutescope3emissionsinkg/tonneofCO2Absolutescope3emissionsinkg/tonneofCO2Absolutescope3emissionsinkg/tonneofCO2MediumprecisionFuelconsumed(litres)Emissionsfactor(kgCO2e/litre)Dependingonthetypeoffuel:1.JetkerosenekgCO2/kgfuel2.LCASAFkgCO2/kgfuelLowerprecisionCurrentconsiderations–Low-tomedium-precisionforscope3emissionsdataasaresultofactualfuelconsumptionnotbeingconsidered–Carefulaccountingrequiredtoavoiddoubleclaimingacrossscopes1and3Source:WorldEconomicForum,PoweringSustainableAviationThroughConsumerDemand:TheCleanSkiesforTomorrowSustainableAviationFuelCertificate(SAFc)Framework,2021.f.Thepricemayseemhigh(becauseitcurrentlyis)Asanascentmarketentrant,SAFcurrentlyhaveapricepremiumofatleasttwicethatofconventionaljetfuel.However,asdemandsurges,concertedeffortsareunderwaytodevelopnoveltechnologiesandestablishnewfacilitiesaimedatenhancingproductionefficiencyandexpandingtheavailabilityofSAF.Budgetisalwaysanissue.Carbonpricingisrecognizedbytheworld’sleadingeconomistsasthebestwaytoalignprofitmotivewiththeimperativetocutemissionsandsounleashthepowerofmarketstoreallocatecapitalquicklyandefficiently.IntroduceacarbonpricetocreateabudgettopayforSAF,whichcanbeequallyscaledtootherdecarbonizationsolutions.g.StakeholderalignmentGroundingtheSAFapproachinacorporate’spurposeandstrategyishighlyimportant.Ultimately,withalluncertaintiesonaccounting,qualityandotherstandards,thekeydecisionfactorneedstobe,“Isittherightthingtodoforclients,theplanetetc.?”moresothan,“Cantheimpactbereflectedinthefootprint?”WhileitisnecessarytoinvestinSAF,don’tunderestimatethetimeorpolitics–bepatienttobuildconsensusandimpatienttogetthejobdone.KilogramsofcarbondioxideperkilogramoffuelkgCO2equivalentpervehiclekilometreSustainableAviationFuels:OfftakeManual22Deloitte’sexperiencepioneeringearlySAFtransactionsBOX4Deloittepurchasedtherighttoclaimscope3emissionsreductionsandavoidedtheemissionsfromover15,000metrictonnesofcarbondioxide.Onechallengeidentifiedinthepilotwasthelackofastandardforcalculatingemissionsbenefits–somethingthatcouldbeusefulforscope3SAFbuyers.FutureSAFcguidanceshouldprovideastandardmethodforallairlinesandcustomersonawell-to-wakebasis.Inadditiontosustainabilityassurance,it’scriticaltostructureSAFtransactionsandtheiroutcomesinastandardizedwaytoenablethismarkettoscaleefficientlyandcredibly.Standardizationandtransparencyofclaims(andthedatathatunderliethem)areimportantastheyallowbuyerstocomparefuelattributesonanequivalentbasisandsendaclearsignalforthehighestintegritySAFthroughSAFcpurchases.Forinstance,feedstockdisclosureallowsdifferentiateddemandandfavourablepricingforthemostsustainableoptions.Thiswouldletcorporationsinterestedinpurchasingscope3emissionsreductions,likeDeloitte,crediblyclaimanddisclosethesustainabilityattributesassociatedwiththeirSAFcertificatepurchases.Source:Connell,Allison,DuncanMaslandandLisaNewman-Wise,PioneeringearlySAFtransactions:Takeawaysandlessonslearned,Deloitte,2021.a.SustainabilityframeworkdevelopmentSettingarobustframeworktosupporthigh-integritySAFbyevaluatingemissionsovertheentirelifecycleofthefuel,establishingsustainabilitycriteria,ensuringanemissionreductionimpactandadoptingatransparentaccountingapproachthatpreventserroneousdoublecounting.10ThereisaneedforaddedtransparencyandbestpracticedifferenceincriteriaofhowsustainabletheSAFisduetodifferentchoicesintheupstream.b.Avoidingscope1andscope3erroneousdoublecountingToensurethecredibilityofanyclimatesolution,itisimperativetoavoidtheflawedpracticeofdoublecountingemissionsreductions.Thisoccurswhenmultipleentitiesassertownershipoverthesameemissionsreductionswithinthesamescope.Forinstance,whenanaircraftoperatorprocuresSAF,thescope3benefitsneedtobedistributedproportionallyamongallitscustomers.c.TheuseofSAFscope3creditspresentsaperceivedriskofmultipleclaimstoreductionsinscope3emissions.Forinstance,erroneousdoublecountingmaytranspirewhenanairtransportcustomerreducesitsscope3emissionsthroughSAFc.Inthisscenario,thepartneredaircraftoperatorbenefitsfromtheassociatedscope1emissionsreductionenabledbySAFc.Consequently,theaircraftoperator’sothercustomerswhoarenotpartoftheSAFcreditspartnershipmighterroneouslyassumethattheycanassertaportionofthescope3emissionsreductionsattributedtotheSAFfacilitatedbySAFc.d.TrackingandregistrydevelopmentTheimplementationofarobustbookandclaimprocess,alongwitharegistrysystem,isnecessarytoeffectivelyscale,allocateandretiretheentitlementsassociatedwithclaimingtheenvironmentalattributesofSAF.SuchasystemcouldhelpensuretheintegrityoftheprocessandsafeguardtheaccuratetrackingandmanagementofSAFs’environmentalattributes.Itiscrucialtoprioritizelearningfromothersectorsandavoidduplicatingtheirmistakesorcomplexities.Invarioussectors,multiplestandardscoexist,11eachmaintainingitsindependentregistry.However,thisdiversityof“standards”and“registries”hasraisedquestionsregardingeffectiveness.Therefore,itisessentialtodrawlessonsfromtheseexperiencesandstriveforaunifiedapproachthatensurestransparency,reliabilityandcredibilitytomitigatethesechallenges.Currently,thereisnocentralizedmeta-registryforSAFcertificatetransactions,whichcreateschallengesaroundtransparentemissionsreductionreportingandaccounting–whichtheindustryisworkingtosolve.Thefollowingaresomeexamples:–Aveliaisablockchain-poweredbookandclaimsystempoweredbyShellAviationandAccenturewithsupportfromEnergyWebFoundationtogetherwithAmericanExpressGlobalBusinessTravelandusedbyairlines3.4RisksinvolvedinSAFscope3emissionsreductionSustainableAviationFuels:OfftakeManual23CathyPacific,Alaska,Delta,JetBlue,alongsidecorporatebuyers.–TheSABA,RMIandEnergyWebarebuildingadigitalSAFcregistry.TheSAFcRegistryRulebookoutlinesfeaturesoftheregistrysystemandprovidesdetailsonapplicationincluding“issuance,holding,transferandretirement”ofSAFc.–RSBBook&ClaimManuale.PricefluctuationsandmarketvolatilityTheSAFlandscapeisnotyetastablemarketasthisisarelativelynewinnovationandpricesareexpectedtofluctuateovertime.However,demandaggregationandofftakecontractsfromcorporatebuyersthroughSAFcpurchaseswillstimulatethemarketandincentivizesupplierstoadvanceandaccelerateSAFproduction,ultimatelyloweringthepricepremium.SustainableAviationFuels:OfftakeManual24Supplierperspective:SAFofftaketemplate4SAFofftakeagreementsarethebestsupplyaccelerationcatalyser.Inmostcases,thesellerofthefuelwilltypicallybeoneofthefollowingfourparties:–SAFproducer–Petroleumrefinery–Blender–Airportfueldepot.Inallcases,purchaseagreementsshouldlisttheagreedconditionsforfuelspecification,SAFtracking,sustainabilitycertificationandtheassignmentorownershipofanyrenewableenergyandcarboncredits,includingscope3.StandardinsuranceispartofafossilfuelofftakeandshouldbethesameasaSAFofftakeandtypicallycoversthird-partyliabilityandbusiness-relatedrisk.Someofthepotentialchangestothestandardfossilfuelsupplyagreement(generallyreferredtoasthespecimenagreement)couldincludethefollowing:–Generaltermsandconditions–Locationagreements–Safety,qualityandoperationstermsandcriteria–Administrativearrangements–ServiceagreementThespecimenagreementisamasteragreementthatestablishestheoverallframeworkoftheagreement,includingscope,parties,duration,pricingmechanism,pointofdeliveryandinsurance.Inaddition,ittypicallyincludesallannexesbyreference.Theadvantageofthisstructureisthatitallowsforchangestotheannexeswithouthavingtore-negotiatetheentireagreement.Thisisparticularlyhelpfulwithrespecttothelocationagreementsasthesearelikelytobemodifiedfromyeartoyeartoreflectchangesintheoperationoftheairline,suchascontractedvolumesandprices.SomeofthechangesthatareexpectedtobeincorporatedintothistypeofagreementtoincludeSAFarediscussedbelow.Potentialchangestothespecimenagreement:Changesinthespecimenormasteragreementcouldincludethefollowing:–Scope:Thissectioncanservetoeducatethenatureoftheinter-partydynamics,theprojectedtimeframe,andtheaggregatevolumesofSAFtobenegotiated,alongwithanyoverarchingguidingprinciplesthatthepartieswishtoarticulate.–Pricesandpriceadjustmentsmechanism:Typicalpricearrangementsforconventionaljetfuelincludemarketpricesandformulaprices.Marketpricesarefixedforaperiodoftime,whileformulapricesarebasedonapublishedmarketpriceindexthatvariesperiodically(e.g.daily,weeklyormonthly).TotheextentthatthepricefortheSAFmaybedetermineddifferently,4.1Introduction4.2PotentialchangestofossiltemplatesConventionaljetfuelpurchaseagreementsshouldstructurallyonlyneedmodestamendmentstoaccommodateSAF,butthedetailoftheseamendmentswillbeimportant.SustainableAviationFuels:OfftakeManual25thosemodificationscouldbeincorporatedhereordirectlyintothelocationagreements.–Pointofdelivery:ThiscouldbeagoodplacetospecifywheredeliveryoftheblendedSAFwouldoccur,forexample,attheairportfuelfarm(e.g.into-storage)oratthewingoftheaircraft(e.g.into-wing).Thepointofdeliverymayalsobedifferentatdifferentairports;therefore,itcouldalsobespecifiedineachlocationagreement.–Akeyconsiderationthatisnotcurrentlycontemplatedintheaviationfuelsupplymodelagreement(AFSMA)ishowandwhereblendingwilltakeplace.12Inparticular,itshouldbedeterminedwhichpartywillberesponsibleforblendingandforensuringthattheblendmeetstheASTMD7566specification.Theblendratioshouldalsobeindicated;inaddition,thepartyresponsibleforprocurementoftheconventionalfuelcomponentshouldbespecified.Undercertaincircumstances,airlinesmaybebetterpositionedtoprocureconventionalfuel,giventhattheyalreadypurchaseitfromconventionalprovidersattheairportstheyserve.Thelocationforblendingshouldalsobeconsidered.Thisdecision,however,coulddependonanumberoffactorsthatcanvaryfromlocationtolocation.Thisisanotheritemthatcanbeincorporatedintoeachlocationagreement.–AmainreasonforanairlinetoprocuretheSAFistoreceiveenvironmentalandothercreditsassociatedwiththeuseofSAF.ItshouldbenotedthatSAFproductioncanpotentiallygeneratecreditstoboththeproducerandtheuserofthefuel.Thus,themasteragreementshouldspecifyhowanycreditsassociatedwithproductionandtheconsumptionoftheSAFwillbeallocated.InthecaseofcreditsaccruedtotheuseroftheSAF,theagreementshouldspecifythetypeofdocumentation(e.g.acertificateofsustainability)thatthesellerneedstoprovidetotheuser.Potentialchangestothelocationagreement:Thelocationagreementsareagoodplacetoreflectelementsthatdependontheparticularcircumstancesatindividualairports,suchas:–Deliverypoint–Quantity(also,whethertheSAFwillbedeliveredneatorblended)–Priceinaddition,thelocationagreementcanbemodifiedtoincludeotherelements,suchas:–Partyresponsibleforblending–Partyresponsibleforsourcingconventionalfuel–Blendratio.Potentialchangestosafety,qualityandoperationsmanagementInprinciple,safety,qualityandoperationsmanagementshouldnotrepresentmajorchange,astheblendedfuelmuststillmeetASTMD1655orDefStan91-91andwillnotrequireanyadditionalprocedures.However,ensuringthereisadocumenttrailoftheneatSAFcertificationunderASTMd7566andtherecertificationunderASTMd1655isadvised.Airlinesmayneedtospendadditionaltimewithsuppliers,third-partyserviceprovidersandstakeholderstoensureeveryoneiscomfortablewithhandlingandstoringtheblendedSAF.AdministrativechangesInvoicingmaybeadjustedtoreflectthetypeofinformationthattheairlinewouldwanttoreceivewithrespecttothepurchaseofSAF.Thisinformationcouldinclude:–VolumeandmassofSAFpurchased–FeedstockusedfortheproductionoftheSAF–Blendratio–Qualitydocumentationsuchasarefinerycertificateofquality(RCQ)oracertificateofanalysis(COA)demonstratingphysicalcompliancewithASTMD7566(orequivalentsuchasDefStan91-91)shallbeprovidedforeachbatchofSAFblend.TheRCQorCOAshouldclearlyindicatetheSAFblendpercentageinvolume,aswellasthedensityoftheSAFcomponent,toensurepropertracking.–Documentationofanyenvironmentalorothercreditsassociatedwiththepurchaseofthefuel,suchasacertificateofsustainability(CoS).TheCoSisgenerallyrequiredifanairlineintendstoclaimcreditforSAFuseundervariousrenewableenergyincentiveprogrammes(e.g.EU-ETS).AmainreasonforanairlinetoprocuretheSAFistoreceiveenvironmentalandothercreditsassociatedwiththeuseofSAF.SustainableAviationFuels:OfftakeManual26Policyexamples:compliance5Long-term,stablepoliciesarenecessarytocreateasustainedmarketforSAF.EachpolicythatincludesSAF(obligatedorvoluntarycompliance)shouldbeatriggerforreviewinadvanceofexecutinganofftakeagreement.Inparticular,considerationshouldbegiventothedocumentationtrailexpectedtobenecessaryforcomplianceandthisshouldbestipulatedintheofftakeagreement.Some40countrieshaveapolicyincludingSAFinplaceorunderdevelopment.Itisbeyondthescopeofthisdocumenttoassesseachexample;however,CORSIAisrelevant,giventhatitwillpotentiallyapplytoallaircraftoperators.Themonitoring,reportingandverificationmethodologyforCORSIAwasdevelopedbyhundredsofinternationalexpertsoverseveralyearsand,whilepotentiallynotexhaustive,isacomprehensiveguideforthetypeofconsiderationsanddocumentrequirementsexpectedtodemonstratecompliance.5.1IntroductionSustainableAviationFuels:OfftakeManual27UndertheCORSIAscheme,aircraftoperatorsmustpurchaseandcancel“emissionsunits”tooffsetthegrowthinCO2emissionscoveredbythescheme.TheaimoftheschemeistoaddressanyannualincreaseintotalCO2emissionsfrominternationalcivilaviationabove85%of2019levels.AnaircraftoperatormayreduceitsoffsettingrequirementsbasedonlifecycleemissionssavingfromSAF,providedtheSAFmeetsthedefinedsustainabilitycriteria.Asof2023,thereare12separatesustainabilitycriteria,ofwhichsevenaremandatoryandmustbeverifiedbyanapprovedsustainabilityverificationscheme,threecanbeassessedbynationalattestation,andtwoarevoluntary.Itisessentialtohaveappropriatedocumentationforthesevencompulsorysustainabilitycriteria.Detailedsustainabilityinformationcanbefoundinthekeyreferencedocuments.Additionally,fuelproductionverificationdataisnecessary.ThedatareferenceslistedbelowfromtheChicagoConventionAnnex16-4serveasausefulguideforthetypeofrequirementtoconsiderexplicitlyrequestinginanofftakeagreement.5.2CORSIAexampleSAFsupplementaryinformationtotheaeroplaneoperator’semissionsreporttothestateFIGURE7–Purchasedate/produceridentification/fuelproductioninformation–Typeoffuel/feedstock/batchnumber/massofbatch/validsustainabilitycertificationdocument–Intermediatepurchaser(details)/transportandshippinginformation/blendinglocation–Nameandcontactinformationofresponsibleblendingparty/dateneatfuelwasreceivedbyblender/massofneatSAF–BlendratioofSAFandaviationfuel(AF)/supportingdocumentationdemonstratingthatbatchesofSAFwereblendedwithAF–MassofneatsustainableaviationfuelclaimedNeatSAFLogisticsFinishedSource:CORSIA,Annex16–EnvironmentalProtection–VolumeIV,2018.InformationcollectionbytheaircraftoperatorfromintermediariesFIGURE8AircraftoperatorIntermediaryIntermediaryBlendinginformationLogisticinformation/blender/neatfuel/info/massSAFtype(feedstock,conversionprocess,jetA1/aviationgas)SustainabilitycertificationBatch(number/mass)Production(who/when)SAF:aviationfuelratio/massclaimedSource:CORSIA,Annex16–EnvironmentalProtection–VolumeIV,2018.SustainableAviationFuels:OfftakeManual28Theconceptofearlymarketcommitmentappliedtogroundbreakingtechnologieswithinthechallengingsectorsofheavyindustryandlong-distancetransportformsthecoreoftheFirstMoversCoalition’sapproach.Remarkably,thecoalitionhasgeneratedanunprecedenteddemandsignal,withtheprivatesectorpledgingaremarkable$12billionby2030toprocureinnovativegreentechnologies.Moreover,theFirstMoversCoalitionhasgainedsubstantialsupportfromvariousgovernmentpartnerswhonotonlyendorsethecoalition’sendeavoursbutalsostrivetoimplementpolicyagendasthatfacilitatetheexpansionoftransformativetechnologieschampionedbytheFirstMoversCoalition.Navigatingtheclimatecrisiswillrequirethelargestcapitaldeploymentinhistory,drivingatleastayearlyinvestmentof$3trillion.Whilerelevantprogresscanbemadewithexistinganddeployedtechnologiestoreachnetzero,theglobalcostcurveofinnovativegreentechnologiesmustbebroughtdown.Thisisparticularlycriticalforthesevenhard-to-abatesectors:aluminium,aviation,cementandconcrete,chemicals,shipping,steel,andtrucking.Public-privatepartnerships,liketheFirstMoversCoalition,enablecompaniestomovetogetherandmakegreaterprogresswhilereducingriskandcost.Companiesshouldpartnercloselywithothercompanies,governmentsandeveryoneacrossthevaluechaintoacceleratethedecarbonizationjourney.SAFisessentialtoaviation’sdecarbonizationpathway,andwhilearapidscale-upisrequiredtomeetthenetzerotarget,globalprogressneedsspeedandscalethatcanbeachievedthroughofftakes.Throughcollaborationacrossitsmembers,theFirstMoversCoalitionisworkingtoacceleratethedecarbonizationofthesector,harnessingthepurchasingpowerofitsmemberstoacceleratethedeploymentofhigh-qualitySAFwhilebringingtheglobalcostcurvedown.TheFirstMoversCoalitionisacompellingexampleofhowaggregateddemandforinnovativegreentechnologiesthroughdemandcommitmentscanachieverippleeffectsattheglobalscale.ThroughthecollaborativeworkwithintheFirstMoversCoalition,aviation’smoresustainablefutureiscloserthanbefore.ConclusionSustainableAviationFuels:OfftakeManual29AppendicesSAFtechnologyMissionPossiblePartnership,MakingNet-ZeroAviationPossible,2022AirTransportActionGroup(ATAG),Waypoint2050,2021InternationalClimateFund(ICF),FuellingNetZero:Howtheaviationindustrycandeploysufficientsustainableaviationfueltomeetclimateambitions,2021FrontiersinEnergyResearch,“SustainableAviationFuels”,2022SAFfeedstockandsustainabilityUSDepartmentofEnergy,“AlternativeFuelsDataCentre”,2023InternationalCivilAviationOrganization(ICAO),CORSIADefaultLifeCycleEmissionsValuesforCORSIAEligibleFuels,2022SAFeconomicsICAO,“SAFRulesofThumb”,2023RenewableFuelStandardProgramUnitedStates,SAFGrandChallengeRoadmapFlightPlanforSustainableAviationFuel,2022PwC,“TheRealCostofGreenAviation”,2022SAFpolicyandregulationAtlanticCouncil,SustainableAviationFuelPolicyintheUnitedStates:APragmaticWayForward,2020GovernmentofCanada,“WhataretheCleanFuelRegulations?”,2023EuropeanCommission,“FuelQuality”,2023EuropeanCommission,“RenewableEnergyDirective”,2023ICAO,GuidanceonPotentialPoliciesandCoordinatedApproachesfortheDeploymentofSustainableAviationFuels,2022ICAO,SustainableAviationFuelsGuide,2018CleanSkiesforTomorrow,JointPolicyProposaltoAcceleratetheDeploymentofSustainableAviationFuelsinEurope,2020CleanSkiesforTomorrow,SustainableAviationFuelPolicyToolkit,2021InternationalAirTransportAssociation(IATA),IATAGuidanceMaterialforSustainableAviationFuelManagement,2015A1KeydocumentsSustainableAviationFuels:OfftakeManual30ContributorsAcknowledgementsLeadauthorsLaiaBarbaràLead,IndustryDecarbonization,Aviation,WorldEconomicForumRobertBoydFMCAviationChampion,BoeingRosaEsiEnnisonFMCFreightDecarbonizationSpecialist,WorldEconomicForumNancyGillisProgrammeHead,FirstMoversCoalition,WorldEconomicForumTheproposedSAFOfftakeManualistheresultofanextensivereviewofleadingpracticesfromtheFirstMoversCoalitionmembers.TheinterpretationsandsuggestionshereinwererefinedthroughstakeholderconsultationsfacilitatedbytheFirstMoversCoalitionforAviation.Wewouldliketoexpressspecialgratitudetothebeloworganizationsandindividualsfortheircontributionsandsupport,thiscollaborativeeffortwouldnothavebeenpossiblewithouttheirsubstantialcontributions:AmericanExpressBusinessTravel,BankofAmerica,BostonConsultingGroup(BCG),BreakthroughEnergy,Deloitte,DeutschePostDHLGroup,PwC,RioTinto,Salesforce,UnitedAirlinesMarianoBerkenwaldSeniorAssociate,AviationandShipping,BreakthroughEnergyMaartenDansenSeniorManager,PwCWinekeHaagsmaChiefSustainabilityOfficer,Partner,PwCJan-MarcusLueckhofSeniorExpert,SustainableAviation,DeutschePostKristenLoriaManager,InternalSustainability,DeloitteGlobalNoraLovellMarchantVice-President,Sustainability,AmericanExpressGlobalBusinessTravelSandrineMauryProcurementSustainabilityManager,DeloitteTomMichelsDirector,GovernmentAffairs,UnitedContinentalHoldingsAndreasMuendelSeniorVice-President,StrategyandOperationsPrograms,DeutschePostLisaNewman-WiseSeniorManager,InternalSustainabilityLeader,DeloitteUSAntoinePoulallionManager,GlobalInternalClimateStrategy,BostonConsultingGroup(BCG)RohiniSenguptaDirector,SustainabilityandDecarbonization,UnitedAirlinesLisaShpritzEnvironmentalOperationsExecutive,BankofAmericaKarenSwemmerActingManager,TravelandExpenses,RioTintoBrianSylvesterSustainabilityManager,BCGHenrikvonStorchCommunicationsandSustainabilityStrategyTeamLead,GoGreen,DeutschePostJamilaYamaniSeniorManager,ClimateandNatureResearch,SalesforceProductionStudioMikoLaurenceDenmarkCreativeDirectorMarthaHowlettEditorOliverTurnerDesignerSustainableAviationFuels:OfftakeManual31Endnotes1.“DevelopingSustainableAviationFuel(SAF)”,InternationalAirTransportAssociation(IATA),n.d.,https://www.iata.org/en/programs/environment/sustainable-aviation-fuels/.2.Alcorta,Andrew,MichelFrédeau,PatrickHerhold,CorneliusPieper,KeshavRastogiandTinaZuzek-Arden,HarnessingPurchasingPowertoDriveDecarbonizationThroughtheFirstMoversCoalition,BostonConsultingGroup,2023,https://web-assets.bcg.com/ce/f5/709e3f6a4a51b7ea2fc4baa8b277/bcg-harnessing-purchasing-power-to-drive-decarbonization-jan-2023.pdf.3.“SAFrulesofthumb”,InternationalCivilAviationOrganization(ICAO),n.d.,https://www.icao.int/environmental-protection/Pages/SAF_RULESOFTHUMB.aspx.4.“Beginner’sGuidetoSustainableAviationFuel”,AirTransportActionGroup(ATAG),4April2023,https://aviationbenefits.org/downloads/beginners-guide-to-sustainable-aviation-fuel/.5.“Directive(EU)2018/2018oftheEuropeanParliamentandoftheCouncilof11December2018onthepromotionoftheuseofenergyfromrenewablesources(recast)”,EuropeanCommission,21December2018,https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=uriserv:OJ.L_.2018.328.01.0082.01.ENG&toc=OJ:L:2018:328:TOC.6.SmartFreightCentre(SFC)andMassachusettsInstituteofTechnology’sCenterforTransportation&Logistics(MITCTL),SustainableAviationFuelGreenhouseGasEmissionAccountingandInsettingGuidelines,2021,https://www.flexmail.eu/f-1f3f332f2c34b17a.7.SmartFreightCentreandDeutschePostDHLGroup,CarbonInsetsfortheLogisticsSector,2020,https://www.dpdhl.com/content/dam/dpdhl/en/media-center/media-relations/documents/2020/dgf-carbon-insets-white-paper-smart-freight.pdf.8.ItishoweverworthnotingthattheGHGPisnotyetclearonaccounting,sorisksshouldbeconsidered.9.AccordingtoSBTi:“SAFmaybeusedbyconsumersofaviationservicestoachievescience-basedtargetssetagainstjetfuel-relatedemissions.UseofSAFbyconsumersofaviationservicescouldfollowabookandclaimapproachifconsistentwiththeGHGPaccountingframework”.ItishoweverworthnotingthattheGHGPisnotyetclearonaccounting,sorisksshouldbeconsidered.EngageanexperttohelpnavigatetheSBTiprocessandbuildbuffersoftimebecausethebacklogismonthslong.10.Piris-Cabezas,Pedro,“TheHigh-IntegritySustainableAviationFuelsHandbook”,EnvironmentalDefenseFund,2022,https://www.edf.org/sites/default/files/2022-08/EDF%20HIGH-INTEGRITY%20SAF%20HANDBOOK.pdf;SustainableAviationBuyersAlliance(SABA),SustainabilityFrameworkforSustainableAviationFuel(SAF),2022,https://www.flysaba.org/files/2022/12/SABA-SAF-Sustainability-Framework_12.9.22.pdf.11.Forexample,carbonoffsetprojectshaveseveralstandardslikeVerra,GoldStandardorClimateActionReverse;andeachofthemoperatesitsownregistry.12.IATA,AviationFuelSupplyModelAgreement,2017,https://www.iata.org/contentassets/ebdba50e57194019930d72722413edd4/afsma-2017.docx.SustainableAviationFuels:OfftakeManual32WorldEconomicForum91–93routedelaCapiteCH-1223Cologny/GenevaSwitzerlandTel.:+41(0)228691212Fax:+41(0)227862744contact@weforum.orgwww.weforum.orgTheWorldEconomicForum,committedtoimprovingthestateoftheworld,istheInternationalOrganizationforPublic-PrivateCooperation.TheForumengagestheforemostpolitical,businessandotherleadersofsocietytoshapeglobal,regionalandindustryagendas.
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