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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

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

Encouraging uptake in the initial compliance year

New figures from the Department for Transport indicate that Sustainable Aviation Fuel accounted for 1.63 percent of jet fuel supplied between January and late October. While the statistics remain provisional, they already represent more than one hundred sixty million litres of cleaner fuel in airline tanks. With several suppliers still finalising returns, industry group Sustainable Aviation remains

confident that the full two percent requirement for 2025 will be achieved once verified data are published next year.

Demonstrated capability of waste derived feedstocks

Every litre reported to date originated from used cooking oil, much of it collected in Asia and refined to international standards before shipment to the United Kingdom. The performance confirms that established hydro processed ester and fatty acid pathways can scale quickly and deliver reliable product quality. Upcoming capacity in Teesside and Humberside will diversify feedstocks to include municipal solid waste and cellulosic residues, further strengthening supply resilience.

Policy tools accelerating investment

• The proposed Revenue Certainty Mechanism will guarantee a reference price for producers.
• Consultations on contract design remain open until early April.
• Parliament expects the mechanism to be operational before year end 2026.
• Incremental mandate increases will rise to ten percent by 2030.

A non-obvious insight

Because SAF volumes must be fully validated before they count toward mandate compliance, the apparent delivery shortfall primarily reflects administrative timing rather than production limits. Companies that invest in streamlined chain of custody documentation can capture early sales premiums and reduce working capital exposure, turning paperwork efficiency into a tangible competitive edge.

Conclusion

The inaugural mandate year is already demonstrating market appetite for cleaner aviation energy. Robust progress on both supply volumes and supportive policy signals suggests that the United Kingdom is well positioned to accelerate SAF deployment, drive domestic innovation, and maintain global leadership in sustainable flight.

Source – BioEnergyTimes

A forward-looking emissions scheme

Parliament is reviewing amendments that will modernise the United Kingdom Emissions Trading Scheme from 2027 onward. Proposed changes phase out certain free allowances while extending the overall cap to 2040, giving companies a clear runway for investment planning. Operators in cement, steel, fertiliser, aluminium, and hydrogen production will gradually transition toward full auction pricing, encouraging deployment of low carbon heat, capture, and efficiency technologies.

Market clarity and financial incentives

The scheme retains a robust auction reserve price and an automatic cost containment mechanism, both of which provide price stability and protect against unexpected volatility. Businesses can therefore invest with confidence in solutions such as carbon capture, fuel switching, and renewable power agreements. Importantly, allowances can be banked between the upcoming phases, allowing firms to reward early action and manage compliance cost strategically.

Complementary policy measures

• A new Climate Change Agreement programme will deliver levy discounts through 2033 for facilities that meet efficiency targets.
• Draft regulations move decarbonisation readiness reports into the environmental permitting process, streamlining approvals for modern power plants.
• The Planning and Infrastructure Act introduces voluntary environmental delivery plans, enabling developers to offset impacts through a simplified levy.
• Updated plastic packaging and landfill tax pathways align fiscal signals with circular economy objectives.

A non-obvious insight

By bringing energy from waste plants into the trading scheme beginning with voluntary monitoring in 2026, policymakers are effectively creating a data rich test bed before mandatory compliance starts in 2028. This soft launch will let plant operators fine tune operations and verify emissions factors, reducing future compliance risk and potentially uncovering profitable energy recovery upgrades.

Conclusion

The refreshed regulatory package demonstrates how clear targets, practical flexibility, and integrated incentives can stimulate private innovation while advancing national climate goals. Companies that engage early stand to reduce costs, capture new markets, and help deliver a thriving zero carbon economy.

Source – Osborne Clarke

Environmental review completed without conditions

SkyNRG Americas has secured full environmental approvals for Project Wigeon, its planned Sustainable Aviation Fuel facility near Walla Walla. Reviews by the Washington State Department of Ecology and the County Commission confirmed that the project aligns with local land use rules, protects groundwater, and meets transport safety standards. The clear verdict allows the company to move confidently into front end engineering and design during the first half of 2026.

How renewable natural gas will become jet fuel

The plant will convert renewable natural gas sourced from regional dairy digesters and landfills into synthetic paraffinic kerosene that meets ASTM specifications. The process uses Fischer Tropsch synthesis followed by hydro conversion, creating a fuel with up to eighty percent lower lifecycle emissions than conventional jet fuel. At full capacity, Project Wigeon is expected to produce around ninety million gallons per year, enough to supply Seattle Tacoma International Airport with nearly five percent SAF blend.

Local economic lift

• Construction is projected to generate more than four hundred skilled jobs.
• Ongoing operations will support family wage positions in rural eastern Washington.
• Farmers will gain a new revenue stream for captured methane.
• Municipal waste utilities can monetise biogas that would otherwise be flared.

A non-obvious insight

Because the facility will draw gas from multiple small digesters, SkyNRG is quietly building a virtual pipeline that aggregates biomethane through existing natural gas infrastructure. This distributed model avoids the cost and land impact of new dedicated lines while providing dairies and landfills an immediate, low friction path into the aviation supply chain. The approach could be replicated rapidly across North America, turning scattered waste resources into a cohesive renewable energy network.

Conclusion

Environmental clearance transforms Project Wigeon from an idea into a construction ready opportunity. The approval showcases how cooperative planning, advanced technology, and creative feedstock logistics can align to advance decarbonised flight and boost regional prosperity.

Source – SkyNRG Americas

A fresh incentive woven into larger climate agenda

California Governor Gavin Newsom proposed budget includes a new Sustainable Aviation Fuel tax credit designed to close the remaining cost gap between conventional jet fuel and SAF. The credit will be available from 2027 to 2030 and stacks with the federal Section 45Z clean fuel production credit that begins in 2027. Together they create a clear price signal that many analysts say is finally sufficient to trigger large scale construction of SAF plants within the state.

How the mechanism will work

The draft language suggests a value up to twenty cents per gallon that declines as carbon intensity scores improve statewide. Unlike many earlier programmes, the credit is refundable, meaning companies with limited tax exposure can still benefit immediately rather than carrying losses forward. That feature quietly turns the measure into a flexible grant and removes a common barrier faced by early-stage producers.

• Key eligibility criteria will focus on verifiable carbon intensity scores.
• Feedstocks sourced from in state agriculture and waste streams receive preference.
• Credit stacking with federal programmes is explicitly permitted, increasing total potential value.

Economic and agricultural ripple effects

Corn growers and oilseed crushers in the Central Valley welcome the proposal. Surplus crop production, underscored by the recent record national corn harvest, can now find new premium markets. Logistics providers also anticipate fresh volumes as SAF moves from rural processing hubs

to coastal airports. The Renewable Fuels Association estimates that each one percent SAF penetration at California airports supports roughly five hundred direct and indirect jobs.

A non-obvious insight

Because the credit value shrinks as statewide average carbon intensity falls, there is a built in incentive for collaborative data sharing among producers. Firms that openly publish lifecycle improvements effectively reduce costs for everybody, turning transparency into a competitive advantage rather than a compliance burden.

Conclusion

California is positioning itself as a first mover in the growing SAF economy, using a carefully calibrated credit that rewards both production and performance. The policy blends climate ambition with pragmatic industry design and should accelerate investment decisions throughout 2026.

Source – Biodiesel Magazine