Assessment of the Impact of Low-Carbon Fuels at Sea: A Technical Audit of Emission Reductions and Sustainability Verification.

Verification Process

• Verification Framework

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.

• 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 those of conventional marine fuel oil (High Sulfur Fuel Oil—HSFO). These calculations were based on the EU’s RED II framework and utilized data from the biofuel supplier’s documentation.

• Additionality Assessment

An additionality assessment was conducted to ensure that the emission reductions were legitimate and had not already been accounted for.

• Register and Allocation

The verification resulted in a well-developed registry for recording biofuels and allocating insets. This registry ensured that allocations were made without double-counting, thereby providing transparency and accountability.

Benefits of the Low Carbon Fuel Program Audit

For Ship Owners/Operators

1. Emissions reduction: Verified biofuel use helps reduce Scope 1 emissions, contributing to a lower overall carbon footprint.
2. Regulatory compliance: Ensures compliance with international and regional regulations on emissions reduction, thereby avoiding potential fines.
3. Market differentiation: Demonstrates a commitment to sustainability and attracts environmentally conscious customers and partners.
4. Future-proofing: Prepares for future changes in regulations and market demands, ensuring long-term viability and resilience.

For shippers

1. Scope 3 emissions reduction: Enables shippers to claim reductions in their Scope 3 emissions using verified emissions reduction credits.
2. Enhanced reputation: Demonstrates a commitment to sustainability, thereby improving reputation among stakeholders.
3. Competitive advantage: Provides a competitive edge by attracting environmentally conscious customers and partners.
4. Risk mitigation: Helps mitigate regulatory risks and potential future costs associated with carbon pricing and stricter regulations.
5. Contribution to global goals: Supports global efforts to combat climate change, in line with international goals such as the Paris Agreement.