Virgin Australia and Boeing have signalled their support for an international ‘Book and Claim’ accounting structure for Sustainable Aviation Fuel (SAF), which offers tax incentives for local production and use.
In a newly commissioned report prepared by independent think tank Pollination, Virgin and Boeing state that Book and Claim represents a major opportunity for a SAF industry in Australia.
It’s a system that decouples the physical delivery of SAF from its environmental benefits. Rather than requiring the fuel to be delivered directly to the buyer, it allows organisations to purchase the environmental attributes of SAF – such as emissions reductions – while the actual fuel may be used elsewhere. This enables wider participation in SAF markets, even in regions where production or infrastructure is limited.
Virgin and Boeing say Book and Claim will allow them to claim the environmental and financial benefits of buying SAF without physically storing the fuel or generating carbon emissions through transporting it.
Australia’s greenhouse gas accounting system currently only allows airlines to recognise SAF emissions combusted locally, not from fuel used overseas.
The concept also highlights the slow progress being made in establishing a local SAF production industry, despite significant feedstock resources. Airlines are eager to purchase the fuel, but at present are only able to source it from overseas.
“SAF is the most critical decarbonisation lever for the aviation sector to reach net zero emissions, but production and use of Sustainable Aviation Fuel must accelerate significantly for the global aviation sector to achieve this goal,” said Virgin Australia General Manager Sustainability, Fiona Walmsley.
“By enabling airlines to purchase SAF benefits regardless of location, we can accelerate industry-wide adoption and ultimately drive down costs.”
Boeing Sustainability Lead for Australia, New Zealand and the South Pacific, Dr Kimberly Camrass, said Book and Claim is critical to scaling up SAF uptake globally.
“It eliminates geographical barriers, allowing airlines to access the environmental benefits of SAF even when they operate in regions where production is not possible or not yet established,” Camrass added.
Earlier this year, Boeing’s chief rival Airbus announced it would begin testing the Book and Claim approach to boost both the supply and demand for SAF globally.
