In a groundbreaking effort to tackle climate change, seven major companies have joined forces to promote the use of Sustainable Aviation Fuel (SAF) and establish a new scheme for trading the environmental benefits associated with its use. This initiative aims to significantly reduce the aviation industry’s carbon footprint by creating a system for trading Scope 3 environmental value — representing the reduction of indirect CO₂ emissions achieved through SAF consumption. This represents the world’s first such collaboration involving fuel suppliers, an airline, a freight forwarder, and an airport operator.
The project is set to launch with a demonstration phase, testing the concept of Scope 3 environmental value trading. If successful, it will expand into a full-scale demonstration involving a larger number of participants, with the goal of rolling out the scheme across Japan. The ultimate objective is to facilitate the widespread adoption of SAF throughout the air transport value chain, contributing to the sustainable growth of the aviation sector and advancing global decarbonization efforts.
Industry Leaders Unite for a Sustainable Future
The initiative brings together leading companies including ITOCHU Corporation, ENEOS Corporation, Nippon Express Holdings (NX Group), Japan Airlines (JAL), Mizuho Bank, Mizuho Research & Technologies, and Narita International Airport Corporation (NAA). Each participant brings a unique contribution to the table, making this a holistic approach to reducing aviation emissions:
- ITOCHU Corporation is committed to enhancing corporate brand value and integrating the UN’s Sustainable Development Goals (SDGs) into its business activities. By supporting this project, ITOCHU aims to bolster the market presence of SAF and contribute to the creation of a circular economy.
- ENEOS Corporation is constructing an integrated system encompassing everything from raw material procurement to the in-house manufacture and sale of SAF. Their involvement in the project aims to promote Scope 3 environmental value, thereby reducing greenhouse gas (GHG) emissions across the aviation value chain.
- NX Group, participating as a forwarder, intends to support the creation of a sustainable society by actively contributing to the decarbonization of the aviation sector.
- JAL Group has committed to using SAF as a key strategy for reducing the aviation industry’s carbon footprint. Through this project, JAL aims to collaborate with customers and partner companies to advance sustainable aviation networks and industry development.
- Mizuho Bank and Mizuho Research & Technologies are providing their expertise in financial knowledge and platform development to support the decarbonization of the aviation and airport sectors.
- Narita International Airport Corporation (NAA), recognizing that approximately 70% of its CO₂ emissions stem from aircraft operations, sees the widespread adoption of SAF as crucial. NAA aims to use this project to encourage reduced Scope 3 emissions among aviation users, thereby contributing to global decarbonization efforts.
The Mechanics of Scope 3 Environmental Value Trading
Scope 3 emissions refer to the indirect emissions that occur in a company’s value chain, including those generated by business travel, freight, and third-party transportation services. The use of SAF allows companies to reduce these emissions, creating what is known as Scope 3 environmental value. By trading this value on a new platform, companies can share the environmental benefits of SAF use, effectively spreading the costs associated with its adoption throughout the industry.
Under the new scheme, SAF will be delivered to Narita International Airport, where the environmental value of its use will be sold on a digital platform. Buyers — companies looking to offset their Scope 3 emissions — can purchase this environmental value, which corresponds to their specific needs. This system eliminates the need for multiple individual contracts between sellers and buyers, streamlining the process and making it easier for companies to meet their sustainability goals.
A Model for Global Decarbonization
This collaborative project is a crucial step towards achieving widespread SAF adoption in Japan and could serve as a model for similar initiatives globally. By involving all stakeholders in the air transport value chain, from fuel suppliers to airport operators, this initiative seeks to establish a sustainable and scalable framework for reducing the aviation industry’s environmental impact.
As this pioneering project moves forward, its success could signal a significant shift in the aviation industry’s approach to sustainability, paving the way for a greener future in global air travel.