A mismatch between suppliers and buyers is making it hard to grow the supply of low-carbon products like cement, steel, and sustainable aviation fuel (SAF).
If you want to produce a product like SAF, you want to find the cheapest place to do it — someplace where there’s cheap, low-carbon hydrogen, for example. But the buyers who have the incentive and money to pay for those products might be halfway across the world.
Or say you’re a supplier of a low-carbon building material. Risk-averse contractors with tight margins may hesitate to pay a green premium — even if the final buyer of the building might be willing to pay extra to cut emissions.
So how do you bridge the gap between the buyers and sellers of low-carbon products?
In this episode, Shayle talks to Adam Klauber, vice president of sustainability and digital supply chain at World Energy, a low-carbon fuels company. They talk about book and claim, a system to separate the environmental attribute (avoided emissions) from the physical good (e.g. fuel). It’s a system that developed in the power sector as renewable energy credits (RECs) and is now spreading to SAFs and other industries. Shayle and Adam cover topics like:
- Book and claim versus other systems of tracking environmental attributes, such as mass-balance and physical chain-of-custody
- Lessons from the most mature book and claim systems, like RECs and SAF
- Key challenges like double counting the interoperability of digital registries and certification
- Other industries where book and claim may develop like maritime, trucking, steel, cement, and chemicals
Recommended resources
Roundtable On Sustainable Biomaterials: RSB Book & Claim Manual
World Economic Forum: The Clean Skies for Tomorrow Sustainable Aviation Fuel Certificate (SAFc) Framework
Sustainable Supply Chain Lab: Decarbonizing the Air Transportation Sector: New greenhousegas accounting and insetting guidelines for sustainable aviation fuel
Maersk Mc-Kinney Møller Center for Zero Carbon Shipping: MaritimeBook & Claim
RMI: Structuring Demand for Lower-Carbon Materials: An Initial Assessment of Book and Claim for the Steel and Concrete Sectors
Catalyst: The complex path to market for low-carbon cement
Catalyst is brought to you by EnergyHub. EnergyHub is working with more than 70 utilities across North America to help scale VPP programs to manage load growth, maximize the value of renewables, and deliver flexibility at every level of the grid. To learn more about their Edge DERMS platform and services, go to energyhub.com.
