Background
Normec Verifavia recently worked with a leading marine 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 emissions intensity of their transportation operations by switching to sustainable biofuels. This initiative allowed the carrier to not only include their Scope 1 emissions, but also allowed their customers to claim reductions in their Scope 3 emissions.
Verification process
Framework for verification.
The verification was conducted in accordance with the Market-Based Measures Framework by Smart Freight Centre. This ensured the credibility and accuracy of emission reductions achieved through the program.
Sustainability of biofuel
An important aspect of the audit was 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.
Methodology and calculations
Normec Verifavia compared the energy density and emission intensity of the biofuel (Used Cooking Oil - UCO) with conventional marine fuel oil (High Sulphur Fuel Oil - HSFO). These calculations were based on the EU RED II framework and used data from the biofuel supplier's documentation.
Additionality assessment
An additionality assessment was conducted to ensure that the emission reductions were legitimate and not already charged for.
Registry and allocation.
The verification resulted in a well-developed registry for biofuel inclusion and inset allocation. This registry ensured that allocations were made without double counting, which provided transparency and accountability.
Benefits of Auditing the Low Carbon Fuel Program.
For ship owners/managers
- Emission reduction: Verified biofuel use helps reduce Scope 1 emissions, contributing to a lower overall carbon footprint.
- Regulatory compliance: Ensures compliance with international and regional emissions reduction regulations, avoiding potential penalties.
- Market differentiation: Demonstrates commitment to sustainability and attracts environmentally conscious customers and partners.
- Future-proofing: Prepares for future regulatory changes and market demands, ensuring long-term viability and resilience.
For freight owners
- Scope 3 emissions reduction: Allows freight owners to claim reductions in their Scope 3 emissions with verified emissions reduction credits.
- Enhanced reputation: Demonstrates commitment to sustainability, improving reputation with stakeholders.
- Competitive advantage: Provides competitive advantage by attracting environmentally conscious customers and partners.
- Risk mitigation: Helps mitigate regulatory risks and potential future costs associated with carbon pricing and stricter regulations.
- Contribution to global goals: Supports global efforts to combat climate change, in line with international goals such as the Paris Agreement.
Conclusion
The Low Carbon Fuel Program Audit conducted by Normec Verifavia provided assurance to the ocean carrier that their use of biofuel resulted in real and measurable emissions reductions. This verification not only helped the carrier meet regulatory requirements and improve operational efficiency, but also ensured that their customers could benefit from reduced Scope 3 emissions. The program demonstrates how collaboration between carriers and freight owners can lead to significant advances in sustainability in the freight transportation industry.
“Questions?”
Our experts are at your service