The observe of monitoring and transferring environmental attributes related to sustainable fuels entails a chain-of-custody system. This method permits firms to buy and retire these attributes, successfully claiming the environmental advantages of sustainable gas manufacturing even when they aren’t immediately consuming the bodily gas itself. For instance, an airline might buy and retire attributes related to sustainable aviation gas produced elsewhere, lowering their reported carbon footprint even when they’re presently utilizing typical jet gas at their hub. This mechanism facilitates funding in sustainable gas manufacturing by making a broader marketplace for its environmental advantages.
Decoupling the bodily gas from its environmental attributes provides a number of benefits. It permits firms to help sustainable gas growth even when the bodily infrastructure for its use will not be but in place. This strategy can speed up the transition to a lower-carbon financial system by incentivizing producers and offering a mechanism for shoppers to take part available in the market no matter location. Traditionally, comparable programs have been used for renewable electrical energy by Renewable Power Certificates (RECs). Adapting this idea to the fuels sector presents a major alternative to scale sustainable gas manufacturing and consumption.
