From Theory to Practice: Adopting the MBM Framework in Aviation in 5 Steps

The aviation industry stands at a critical juncture in its decarbonization journey. Sustainable Aviation Fuel (SAF) is readily available, and airlines have begun integrating it into their operations. Regulatory frameworks, such as the ReFuel EU Aviation mandate are driving implementation by introducing gradual SAF blending obligations. However, the industry’s ambitious climate goals cannot be met without a widespread expansion and adoption of voluntary SAF markets.

One of the key challenges lies in establishing accurate accounting mechanisms for SAF volumes across both regulatory and voluntary markets. Ensuring that SAF quantities are properly credited in carbon balance sheets requires precise alignment. To avoid double accounting and to define thresholds of additionality, robust and unified guidelines have been developed and need to be adopted by all industry stakeholders.

The Smart Freight Centre (SFC) serves as a hub for knowledge sharing and stakeholder exchange, providing essential guidance for the voluntary aviation market. Well-established and widely recognized standards such as ISO 14083 and the GLEC Framework provide a baseline for all decarbonization measures, on top of which voluntary Book and Claim, market-based actions are built. The publication of the Market-Based Measures Framework has outlined steps for integrating low emission solutions, like SAF, into accounting practices. Furthermore, SFC’s Market-Based Measures Specification reinforces this framework by outlining essential criteria and facilitating claim verification through a robust Conformity Assessment Scheme.

To ensure accurate and secure SAF integration into accounting systems, the following steps must be followed by Scope 1 (carriers) and Scope 3 reporting companies across the transport chain: 

Step 1

Identify a transport service based on the mode of transport, vehicle type, its fuel needs, and the corresponding transport activity performed.

Step 2

Calculate emissions using the fossil emission factor for kerosene and the emission intensity, relating absolute emissions to the transport activity in tonne-kilometers (tkm).

Step 3

Create a Low Emission Transport Service (LETS) by implementing a low emission solution—here, SAF. It is crucial to understand the reduction potential of SAF compared to conventional kerosene and the corresponding emission factor of such. 

Step 4

Calculate the absolute emissions based on the fuel needs identified in Step 1 and the replacement of kerosene with SAF. Relate the emissions again to the performed transport activity to determine the new emission intensity of the LETS.

Step 5

The new absolute and relative emissions are compared to the baseline to determine the delta. The lower emission profile from the LETS can then be included in the overall carbon accounting of the company reporting in Scope 3. The attribute of the transportation had the service been fossil kerosene is the “reference case” that is provided to non-participants of the decarbonized transport (the LETS).
Meticulous accounting, along with clear guidance and oversight, is required to prevent false claims and to ensure that both absolute and relative emissions reductions from fuel substitution are accurately reflected—especially when claimed by multiple Scope 3 stakeholders across the value chain.
The SFC Academy offers numerous courses to improve the application of Market-Based Measures (MBM), such as Book and Claim, and provides solutions tailored to specific modes of transportation. Additionally, SFC communities, like Clean Air Transport (CAT), drive knowledge exchange on the latest developments in this field and foster collaboration with leading industry experts to co-develop and evolve standards.

Ready to deepen your understanding of air freight emissions and learn how to apply these critical calculation frameworks? Enroll in our courses below: 

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