Freight transport is a significant contributor to greenhouse gas (GHG) emissions. Reducing these emissions is a challenging task due to the complexity and scale of freight networks. Although the financial burden often falls on freight carriers, shippers and logistics providers (LSPs) can play a crucial role in easing this challenge. By collaborating with carriers, they can share the burden and demonstrate their commitment to decarbonization. One promising approach to this is through low-carbon fuel programs.
Normec Verifavia recently partnered with a leading maritime carrier to verify their Low Carbon Fuel Program. This program was designed as a bilateral agreement between the carrier and their customers to reduce the emission intensity of their transport activities by switching to sustainable biofuels. This initiative not only allowed the carrier to inset their Scope 1 emissions but also enabled their customers to claim reductions in their Scope 3 emissions.
The verification was conducted in accordance with the Market-Based Measures Framework by Smart Freight Centre. This ensured the credibility and accuracy of the emission reductions achieved through the program.
Key aspects of the audit included confirming the sustainability of the biofuel used. The carrier provided Proof of Sustainability and fuel quality test results to demonstrate that the biofuel met the required standards.
Normec Verifavia compared the energy density and emission intensity of the biofuel (Used Cooking Oil – UCO) to conventional marine fuel oil (High Sulphur Fuel Oil – HSFO). These calculations were based on the EU’s RED II framework and utilized data from the biofuel supplier’s documentation.
An additionality assessment was conducted to ensure that the emission reductions were legitimate and not already accounted for.
The verification resulted in a well-developed registry to account for biofuel uptake and insets allocation. This registry ensured that the allocations were done without double counting, providing transparency and accountability.
The Low Carbon Fuel Program Audit conducted by Normec Verifavia provided the maritime carrier with assurance that their biofuel usage resulted in real and measurable emission reductions. This verification not only helped the carrier comply with regulatory requirements and improve operational efficiency but also allowed their customers to benefit from reduced Scope 3 emissions. The program demonstrates how collaborative efforts between carriers and cargo owners can drive significant progress towards sustainability in the freight transport industry.
