SAFc Solve Key Challenges That Have Stood in the Way of Decarbonizing Aviation
What SAF Certificates Are
A SAF certificate (SAFc) is a market mechanism that represents the environmental attributes of a metric ton of neat (unblended) sustainable aviation fuel (SAF). SAFc enable companies to purchase, transparently track, and claim the emissions benefits of using SAF without having to buy the physical fuel.
This approach recognizes that SAF does two types of work:
- Powering jet engines
- Reducing carbon emissions within the aviation sector by displacing fossil fuel
With SAFc, both of these can be accurately measured on their own and purchased by different customers.
SAFc cover both an aircraft’s direct emissions (Scope 1) and a company’s indirect emissions (Scope 3) associated with employee flights or air cargo deliveries. Responsibility for the same emissions may be shared by different parties under different scopes according to carbon accounting guidance. SAFc gives those parties the ability to legitimately share credit for the carbon reduction achieved when SAF displaces fossil jet fuel in the supply chain.
SAFc are what’s known as insets, which means they deliver carbon reduction within the same sector as the emissions are generated. The World Economic Forum and RMI developed the SAFc model in 2021 in response to the challenges of scaling the supply of SAF more quickly and helping companies reduce their Scope 3 carbon footprints.
How SAFc Work
SAFc are purchased and digitally tracked through the supply chain.
- A company calculates its aviation emissions reduction needs, sets its goals, and buys SAFc equivalent to those goals. SAFc are generally priced in metric tons of carbon reduction, which is affiliated with specific gallons of SAF that will be produced because of the purchase.
- By purchasing SAF’s environmental attributes via SAFc, companies pay for the value of SAF’s decarbonization. This helps cover the cost difference between SAF and lower-priced fossil jet fuel.
- A digital chain of custody system called Book & Claim tracks the movement of the SAF and the SAFc through the supply chain. This ensures transparency and avoids double counting.
- Once the SAF is verified in the supply chain, the company that buys the SAFc insets can claim the carbon footprint reduction against the tons of carbon associated with its aggregated flight emissions. This is also called “retiring” their emissions.
How SAFc Solve Decarbonization Challenges
SAF certificates solve key challenges that have stood in the way of decarbonizing aviation.
Challenge: Cost
Sustainable feedstocks and new refining infrastructure make SAF more expensive to produce than fossil jet fuel. This is a challenge for airlines operating on thin margins.
Solution:
Companies outside the aviation sector with serious net-zero commitments have the motivation and the means to purchase the decarbonization value that SAF delivers. This cost collaboration allows airlines to purchase the fuel itself more affordably. In the long run, the price of SAF will drop as supply increases.
Challenge: Control of fuel used for flights
Most companies are held responsible for their Scope 3 aviation carbon emissions, but they don’t buy jet fuel or control the type of fuel airlines use on their flights.
Solution:
The lifetime carbon savings of SAF benefits the atmosphere regardless of where the fuel is physically delivered. So a company can apply the environmental benefits of SAFc to flights from anywhere to anywhere. The Book & Claim system ensures the transparency and integrity of the process.
Challenge: Logistics
SAF is currently produced in only a few places, but using fossil fuels to truck or ship it to far-flung airports would be counterproductive.
Solution:
Buyers of SAFc don’t take possession of the actual fuel. The gallons of SAF associated with the SAFc are added to the aviation fuel supply as close as possible to where the SAF is produced. This minimizes emissions from transport as well as logistical burdens.
Challenge: Reputational risk
Companies with ambitious net-zero goals are sensitive to the potential damage that greenwashing accusations can do to their reputation.
Solution:
Independent third parties verify the credits, and registries confirm the lifecycle carbon savings at every step of the SAF production and delivery process. Book & Claim transparently tracks the SAFc transfer and its eventual use against flight emissions. This guards against double counting and substantiates the amount of carbon reduction claimed.
Challenge: SAF supply
SAF refining capacity is currently limited, in part due to the upfront capital investment required to expand or build new facilities.
Solution:
Long-term SAFc contracts bring companies with high credit ratings into the financial mix and signal long-term demand. This gives investors confidence that a SAF refinery can count on customers for its product well into the future, unlocking critical capital investment and accelerating production.
A Model for the Future
Many companies with ambitious net-zero goals have partnered with World Energy to decarbonize their flight with SAFc. This approach can also decarbonize additional hard-to-abate sectors by enabling customers to help fund and drive demand for green fuels and other sustainable commodities within their value chains. We invite everyone on board for the ride.
