EU and UK ETS Linkage Negotiations Begin

A Reset in Climate Cooperation

Formal negotiations will start next week to connect the European Union Emissions Trading System with the United Kingdom scheme. The effort marks a fresh chapter of climate collaboration after Brexit and promises to simplify carbon accounting for companies that trade intensively between the two economic zones.

Why Linking Matters

At present importers moving steel cement and other carbon intensive goods from Britain into Europe face the Carbon Border Adjustment Mechanism surcharge. A link would allow allowances purchased in either market to offset those emissions, removing duplicate costs and reinforcing shared climate ambition rather than bureaucratic paperwork.

Benefits for Industry

Industry groups have estimated that avoiding the levy could save roughly eight hundred million pounds a year once the mechanism fully applies. Beyond direct savings, predictable and aligned carbon pricing strengthens investor confidence. Steelmakers for example can model long term returns for electric arc furnace upgrades knowing that European and British carbon credits hold comparable value.

Beyond Tariffs: A Strategic Opportunity

The talks also create a testing ground for digital interoperability of registries. If the two systems agree on shared metadata for allowance transfers, that standard could later underpin an international carbon

settlement network similar to the SWIFT protocol used by the banking sector. Such infrastructure would lower transaction costs and make cross border climate finance as routine as wire transfers.

Conclusion

With political commitment growing on both sides of the Channel, rapid progress is possible. A timely agreement would not only cut costs but also showcase collaborative leadership in building an efficient and fair carbon economy. It would signal that climate ambition and competitive trade can advance together.

Source – EU Today

Bunge Brazil Opens Certified Soy Route to Sustainable Aviation Fuel

Breaking New Ground

Bunge has become the first company in Brazil to secure certification for soybeans destined to produce sustainable aviation fuel under the ISCC CORSIA PLUS programme. The approval covers its Rondonopolis unit in Mato Grosso and demonstrates that mainstream commodity supply chains can meet stringent international criteria for renewable jet feedstocks.

Why the ISCC CORSIA PLUS Label Matters

ISCC CORSIA PLUS goes beyond basic sustainability checks. The Low LUC seal included in the Bunge audit confirms minimal risk of indirect land use change, signalling that increased productivity rather than new farmland can supply rising biofuel demand. This nuance is essential for credibility with regulators and investors.

Good News for Farmers

For soybean growers the certification creates a premium market that rewards efficient farming. Practices such as precision fertiliser application and cover cropping now translate directly into eligibility for SAF contracts. Farmers who document performance with satellite monitoring could see stronger income without expanding their cultivated area.

Implications for Airlines

Airlines will benefit too. A reliable soybean based pathway gives carriers another feedstock option as global mandates move closer. Global aviation consumes around three hundred million tonnes of fuel annually, so every certified plant expands the pool of renewable molecules needed to achieve net zero flight.

Hidden Advantage: Logistics Efficiency

A lesser known advantage concerns transport logistics. Brazilian soy already travels through established ports and rail corridors serving global protein markets. Redirecting a small fraction toward domestic biorefineries could eliminate the need to build entirely new supply chains for SAF, cutting scope three emissions associated with feedstock transport and reducing capital expenditure for infrastructure.

Conclusion

By validating responsible soy as a viable input, the certification brings Brazil and the aviation sector closer together in the climate transition. It showcases how existing crops can fuel innovation when transparency and science guide decision making.

Source – BioEnergy Times

Sail for Change Unlocks Major Scope 3 Reductions in Automotive Logistics

Emissions Mission in Maritime Logistics

Vehicle shipping is often a quiet driver of Scope 3 emissions. Yet fuel choices can turn routine transport into measurable progress.

What Toyota Motor Europe Achieved

From August to December 2024, Toyota Motor Europe cut 22,148 tonnes of CO2e through United European Car Carriers Sail for Change fuel switch programme. The saving came from transporting 54,991 vehicles on vessels bunkering lower carbon marine fuels. The impact is comparable to growing 366,215 tree seedlings for 10 years.

Why Verification Matters for ESG Reporting

Action matters more when it is provable. EnviroSense validated the savings as compliant with EU RED II sustainability criteria for marine fuel sourcing, including agricultural biomass plus bio waste and residue feedstocks. This strengthens ESG reporting and reduces the risk of disputed claims.

From Savings to a Scalable System

UECC and Toyota have collaborated for over 30 years, with close to 200,000 vehicles shipped annually. For 2025, Toyota expects 57,448 tonnes of CO2e reduction on routes from Turkey and the Czech Republic to Northern Europe. The insight is simple: scale arrives when a climate measure is built into procurement and planning, not treated as a pilot.

A Practical Insight for Supply Chain Teams

Decarbonising logistics starts with a question: can providers offer low carbon options with auditable evidence. When purchasing guidelines reward verified reductions, carriers have a clear signal to invest in alternative fuels and newer vessels.

Conclusion

This case shows that Scope 3 progress is not only about new technology. It is also about partner selection, proof, and embedding carbon outcomes into everyday shipping decisions. It helps finance teams trust the numbers they publish. To replicate results, map your highest volume lanes, request verified fuel programmes, and set supplier criteria that make lower emissions the default.

Source

Europe Accelerates Toward a Golden Age of Low Carbon Rail Travel

Momentum across the continent

From Berlin to Barcelona, national rail administrations are channelling record investment into high speed and overnight services. The European Commission aims to double high speed passenger kilometres by twenty thirty, and recent announcements show member states moving rapidly from strategy to shovels.

Flagship routes to watch

Germany and France will relaunch the Paris Berlin sleeper in March, compressing the journey into relaxed overnight hours. Spain continues to widen its already vast network, adding affordable options into Extremadura and Castilla La Mancha while modernising the Madrid Lisbon corridor. Switzerland keeps modal share leadership with the forthcoming Basel Malmo sleeper, opening a scenic carbon light path to Scandinavia. Austria’s Koralmbahn, complete with one of the worlds longest rail tunnels, has cut Graz to Klagenfurt travel time to forty five minutes.

Technology driving change

Hydrogen powered multiple units are now displacing diesel sets on German branch lines, proving that non electrified sections no longer need fossil fuel. Biometric ticketing pilots in major stations promise friction free boarding that rivals aviation gate times. Together these advances enhance the passenger proposition and make rail a default choice for business trips under eight hundred kilometres.

Non-obvious commercial angle

Night services are evolving from austere couchettes into mini hotels on wheels. Operators report that on board dining, cowork lounges and premium cabins generate ancillary revenue previously limited to airlines. This hospitality income stream improves the business case for additional long distance sleepers without requiring subsidies.

Tips for travellers

  • Book early for new sleepers as initial demand is exceeding capacity.
  • Check for discounted green passes in Hungary, Latvia and Ireland.
  • Pack light to maximise comfort in compact high-speed coaches.

Conclusion

Europe is proving that ambitious climate goals can go hand in hand with enjoyable travel. By combining infrastructure upgrades with customer centric service design, rail is set to become the continent’s preferred mode for both work and leisure journeys.

Source – Travel And Tour World

Paul Griffiths Champions Global Adoption of Sustainable Aviation Fuel Through SMI Pathfinder

Vision for a Greener Sky

Sustainable aviation fuel can reduce life cycle emissions by as much as eighty percent compared with conventional jet fuel, making it the most viable option to decarbonise flying today. The Sustainable Markets Initiative selected Paul Griffiths chief executive of Dubai Airports to serve as chief champion of the SAF Pathfinder programme. His proven record guiding the busiest international airport network gives him unparalleled insight into how operations logistics and commercial agreements intersect.

Mobilising Investment and Policy Support

The Pathfinder framework unites airlines, energy companies’ financiers, and regulators to unlock the scale-up challenge. Core priorities include

  • securing long term offtake agreements that de risk capital for new biorefineries
  • harmonising sustainability standards so that fuel qualifies for incentives across jurisdictions
  • coordinating supply chain infrastructure from pipeline upgrades to airport blending facilities
  • advocating for price stability through predictable carbon market signals

Industry analysts forecast robust double-digit growth in SAF production volumes. Early momentum is strong. Multiple multilateral banks have opened discussions on blended finance structures, while energy innovators explore power to liquid pathways that pair renewable electricity with captured carbon dioxide.

A Non-Obvious Insight: Airport as Demand Catalyst

Airports rarely appear in fuel policy conversations, yet they control scheduling gate allocation and concession agreements. By integrating SAF usage targets into these operational levers an airport can motivate carriers more effectively than external regulation alone. Dubai Airports successful biodiesel ground fleet illustrates how facilities can create an ecosystem that normalises cleaner fuel choices for tenants’ service providers and passengers alike.

Conclusion

Paul Griffiths leadership positions sustainable aviation fuel at the heart of future air mobility strategies. Through collaborative investment streamlined standards and innovative airport centred incentives the SAF Pathfinder Initiative is set to accelerate adoption and deliver meaningful climate benefits while supporting continued growth in global connectivity.

Source – Travel and Tour World

MOL and ITOCHU Unlock Scope 3 Reductions with Certificate Exchange

Why Environmental Attribute Certificates Matter

Environmental Attribute Certificates convert verified climate benefits into transferable digital tokens connected to specific transport activities. Each certificate stores data on fuel type, route, and emissions factor, creating an auditable trail that companies can retire against Scope 3 inventories. Because certificates are digital, they deliver measurable progress today while capital raised from their sale funds tomorrow innovations.

How the Partnership Works

MOL purchased air travel certificates issued by ITOCHU to balance greenhouse gases from employee flights. ITOCHU acquired sea freight certificates generated by MOL to address emissions from cargo movements. The exchange ran on 123Carbon, a Dutch registry that records issuance, transfer, storage, and retirement in one ledger, eliminating double counting. Both firms remain certificate users, not brokers, keeping activity tied to real operations.

A Fresh Model for Japanese Logistics

The cross sector purchase offers a valuable insight: certificates can move in both directions among partners rather than only downstream to customers. By valuing emissions from travel and freight equivalently, each company created an internal market for climate gains. If replicated, two way exchanges could shrink supply chain footprints while keeping finance circulating inside Japanese industry instead of flowing to overseas offset projects.

Conclusion

MOL and ITOCHU prove collaboration, transparency, and digital tools can unlock immediate Scope 3 progress. Their pilot demonstrates a scalable method for companies reliant on transport to compensate today while preparing for cleaner fuels tomorrow. Expect more circular certificate trading relationships as standards mature.

Source – Hellenic Shipping News

EU Carbon Pricing Update Signals New Momentum For Aviation Sustainability

The European Commission will soon publish its review of the global Corsia climate scheme together with updated European Union Emissions Trading System rules for aviation. The parallel evaluation underscores a simple point: in Europe carbon now has a clear and rising price for every departure.

Key adjustments

Free emission allowances are expected to shrink by twenty five percent in 2024, by fifty percent in 2025, and disappear in 2026. Because the timeline mirrors the Corsia baseline, regulators aim to let airlines submit one harmonised data set for both programs. A less discussed benefit is that combined verification can reduce the compliance software stack by almost half at large network airlines. That change removes duplicate reporting work, releasing specialist staff to focus on fuel saving projects.

Incentives turning cost into opportunity

Money raised through full auctioning flows straight into the Innovation Fund, already financing power to liquid fuel plants, hydrogen trucks, and advanced composite research. A separate pool of twenty million special allowances will cover part of the current price gap between kerosene and sustainable aviation fuel until 2030. Each rise of one euro in the carbon price closes roughly two percent of that gap, improving the business case for regional fuel infrastructure upgrades.

Global ripple effects

Aligning Corsia procedures with the EU system reduces uncertainty for foreign carriers that link Europe with faster growing markets. A single predictable rule book lowers the chance of surprise levies and route cancellations. Aircraft and engine manufacturers also gain firmer demand signals, helping them justify larger budgets for lighter materials, open fan architectures, and digital optimisation tools.

Conclusion

The forthcoming decision transforms carbon pricing from administrative chore to strategic lever. Clear costs, coupled with targeted incentives, reward efficiency, accelerate sustainable fuel rollout, and keep European air travel competitive while progressing toward climate goals.

Source – Aviation Week Network

Sustainable Aviation Fuel and the Book and Claim Breakthrough

The Promise of SAF

Air freight is one of the fastest growing logistics segments, and its energy transition now leans heavily on sustainable aviation fuel, often called SAF. When used without blending, SAF can shrink lifecycle greenhouse gas output by roughly eighty percent compared with conventional jet fuel. Crucially, it already fits within existing engines, pipelines and refuelling trucks, so no fresh infrastructure is required. The International Air Transport Association projects that SAF could deliver almost two thirds of the reduction the sector must achieve on the pathway to net zero.

How Book and Claim Unlocks Scale

Today fewer than one in two hundred airports regularly store SAF. Rather than waiting for every location to catch up, the book and claim model separates physical fuel delivery from environmental benefit allocation. An authenticated record is created when SAF is pumped into any aircraft. Airlines or shippers elsewhere can then buy the associated emissions reduction certificate and retire it against their own flights, receiving auditable proof through a digital registry. The mechanism therefore mobilises global demand immediately, which encourages producers to build larger plants and ultimately drives prices lower.

Blockchain Adds Confidence

Platforms like Avelia record each certificate on blockchain ledgers that cannot be altered. That transparency helps accountants, regulators and customers verify that a single litre of SAF produces just one tradable credit. As a result even companies that rarely move cargo by air can now participate confidently in the transition by purchasing fractional credits.

Non-obvious insight

Because book and claim transactions reveal real time willingness to pay, the aggregated data set is becoming an unexpected demand forecasting tool for fuel refiners. Early analytics already show weekend spikes in certificate purchases, hinting at a future where production schedules mirror e commerce activity rather than airport traffic.

Conclusion

Sustainable aviation fuel already works technically. Book and claim, reinforced by blockchain, makes it work commercially too. Collaboration across shippers, airlines and digital platforms can accelerate volume, reduce cost and place cleaner air freight within reach for every customer.

Source – MIT Technology Review

Book and Claim: Accelerating Sustainable Aviation Fuel for Air Freight

Why Air Cargo Needs a Fresh Approach

After a surge in e commerce, dedicated freighter fleets move a growing share of international goods. Sustainable aviation fuel, or SAF, cuts life cycle climate impact by as much as eighty percent when used neat, yet availability remains limited and price remains high in many regions.

Separating Molecules from Credits

The book and claim framework resolves this bottleneck by allowing airlines and freight forwarders to purchase the climate benefit even when physical SAF is delivered elsewhere. Every time a refinery loads SAF into the pipeline, a digital certificate equal to the associated emissions reduction is minted. Shippers across the globe can retire those certificates against their own flights, creating immediate demand that justifies higher production volumes.

Non-obvious insight

Because certificates specify both feedstock type and refining pathway, buyers can select attributes that match their own sustainability narratives, for example waste oils from specific communities. This level of storytelling value is driving a premium that partially offsets the current price gap between SAF and conventional jet fuel.

Governance and Transparency

Platforms such as Avelia employ blockchain technology to record issuance and retirement, preventing double counting and supplying auditors with real time data. International bodies are now drafting harmonised rules so that certificates generated in one system can be exchanged seamlessly with another, mirroring the evolution of renewable electricity guarantees across Europe two decades ago.

Next Steps for the Industry

Early adopters including logistics giants and technology firms are publishing scope three progress achieved through book and claim. Their participation indicates growing confidence and sends a clear market signal to fuel producers. As volumes scale, economists predict that SAF could achieve price parity with fossil jet fuel before the end of the decade.

Conclusion

Book and claim empowers companies to act today instead of waiting for local SAF supply, turning climate ambition into quantifiable action.

Source – MIT Technology Review

California Budget Proposal Adds Fresh SAF Tax Credit

New incentive at a glance

California lawmakers have included a dedicated tax credit for sustainable aviation fuel in the Governor budget proposal for the coming fiscal year. The measure would complement the federal Inflation Reduction Act credit and a national blender incentive expected in 2027. Under the outline, producers earning verified lifecycle carbon reductions will qualify for a per gallon benefit once fuel is uplifted within the state.

Why this matters for producers

For developers considering new projects in the western United States, a state level layer of support materially improves project economics. Many facilities already target California airports because of existing low carbon fuel standard values. Adding an income tax credit on top of that transaction credit rewards both capital investment and ongoing fuel delivery. One often overlooked advantage is that the credit could shorten payback periods enough to help first movers secure lower interest financing, offsetting elevated construction costs along the Pacific coast.

Broader market impact

The proposal signals confidence in the maturity of SAF pathways such as alcohol to jet and power to liquid. By framing eligibility around carbon intensity rather than feedstock, lawmakers also encourage innovation in woody biomass and renewable electricity based electrofuels, both abundant in California. Airports stand to gain reputational value as customers can book verifiable climate friendly flights without routing changes. If the credit passes intact, analysts estimate a potential annual demand increase of nearly one hundred million gallons by early next decade, representing roughly ten percent of projected United States consumption.

A non-obvious insight

Because the credit is tied to fuel delivered, not manufactured, out of state plants may redirect volumes toward California hubs. This competitive pull could motivate neighboring jurisdictions to introduce matching policies, accelerating regional adoption beyond state borders.

Conclusion

The proposed California tax credit reinforces momentum toward cleaner aviation by stacking incentives, attracting investment, and encouraging policy competition that benefits travelers and the climate.

Source – Biomass Magazine