05/2024

Study: Book & Claim for Green Jet Fuel. Trading in Certificates for Climate-Neutral Aviation

In this study, the PtX Lab Lausitz examines how a Book & Claim (B&C) approach can support the development of a Sustainable Aviation Fuel (SAF) market to meet climate targets. SAF is essential for decarbonising the aviation sector, but challenges related to resource scarcity, high costs, and uncertain regulations hinder its widespread adoption. The European Union (EU) and the United States need to replace millions of tons of fossil jet fuel with SAF by 2050 to meet climate goals. However, sourcing sustainable resources like biomass, CO2, hydrogen, and renewable energy is complex, and high SAF costs pose a barrier to investment. A reliable regulatory framework is crucial to foster market stability and supply growth.

The PtX Lab Lausitz suggests in this study that a B&C system could help overcome these challenges by decoupling SAF's physical production from its sustainability certification. This approach allows SAF to be distributed with conventional jet fuel, reducing infrastructure needs and lowering costs. B&C also facilitates centralised, efficient production in locations with optimal resources, while expanding supply chain diversity and mitigating strategic risks. However, the success of this system depends on clear regulations to prevent fraud and ensure sustainable fuel differentiation. Complementary B&C systems – both state-regulated and voluntary – are proposed that align with existing frameworks such as the EU Emissions Trading System (ETS) and the International Civil Aviation Organization (ICAO)'s CORSIA scheme. Ultimately, B&C could accelerate SAF market growth, especially if adopted regionally and combined with ambitious sustainability standards.

Language(s): English, German
Format(s): Publication
Author(s): Anita Demuth, Anja Paumen, Balthasar Kirchgäßner, Harry Lehmann, Sören C. Schwuchow, Jessica Nagamichi, Martin Hock, Sebastian Voswinckel
Project(s): PtX Lab Lausitz