Part 1 | The Two Ways You “Mass Balance” in Market-based Transportation Emissions Accounting and Reporting

This is part I of a two-part series exploring a “market-based” accounting and reporting approach to transportation decarbonization based on credible and flexible chain of custody practice. This Part I explores the common ways a “Mass Balance” chain of custody model is used in the transportation value chain—and its associated emissions reporting. Part II explores “Book and Claim” and how to “B.Y.O.” (bring-your-own) SAF and apply its profile to your logistics supply chain and reporting.

The Challenge

Accurately tracking physical emissions in the complex transportation sector is difficult and can slow down investment in green fuels. A purely physical accounting approach can mean investors share the emissions reduction benefits with others who did not pay for them.

The Solution

Accurately tracking physical emissions in the complex transportation sector is difficult and can slow down investment in green fuels. A purely physical accounting approach can mean investors share the emissions reduction benefits with others who did not pay for them.

Application 1

Fuel Delivery: Low-emission fuels are often blended with conventional fuels in shared infrastructure. The Mass Balance model allows a fuel provider to sell the administrative record of a pure low-emission fuel to a specific buyer, even though the physical product is a blend.

Application 2

Transportation Services: A carrier can allocate the full environmental benefits of using a green fuel to a single cargo owner who pays a premium for it. This is possible even when that client's cargo is on a shared vessel with goods from other customers.

The Goal

The Mass Balance system enables cargo owners to receive the full benefit of their investment in low-emission transport services. Furthermore, when applied by following a robust framework such as Smart Freight Centre’s MBM Framework prevents double counting, ensures accurate claims, and accelerates decarbonization across the freight sector.

Courses related to this subject:

To understand more about Book and Claim, enroll in the courses below.