Episode 24 | How To Create LETS in Aviation and Account for It Safely
Episode 24 | How To Create LETS in Aviation and Account for It Safely
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In this episode of Smart Freight Conversations, Andy Golding, Director Strategic Services at Smart Freight Centre, is joined by Andrea Schoen, Chief Development Officer at Smart Freight Centre, for an insightful discussion on Low Emission Transport Services (LETS) in aviation – how they work, how to implement them, and how to account for them with integrity.
LETS in Aviation: What Are They and Why Do They Matter?
LETS in Aviation: What Are They and Why Do They Matter?
To begin, Andrea introduces LETS by contrasting them with conventional transport services. When cargo is shipped by air, it carries a “rucksack” of emissions – which grows heavier with every mile and every mode of transport.
LETS offer a solution: by replacing fossil fuels with Sustainable Aviation Fuel (SAF) and assigning those lower-emission attributes to specific shipments, businesses can claim reductions in carbon emissions even when the SAF isn’t physically used on their exact flight.
How the LETS Mechanism Works
Here’s how it unfolds:
1. Airlines purchase and uplift SAF.
2. Forwarders or transport providers request that SAF be attributed to specific shipments.
3. Shippers or end customers receive documentation showing reduced emissions for their cargo, based on the SAF allocation.
This enables market access to lower-emission transport services even if a business isn't located near SAF supply points, a key benefit of the Book and Claim model.
Ensuring Integrity and Avoiding Double Counting
Credibility is essential. Andrea outlines the safeguards required to ensure LETS claims are robust and trustworthy:
- Proof of Sustainability (PoS) confirming fuel origin, emissions reduction potential, and ownership.
- Shipment-level allocation with accurate data on weight, distance, and carbon intensity.
- Audit-ready documentation for each handover in the value chain.
- Use of registries and interoperable systems to track and trace SAF attribution from supplier to end user.
Smart Freight Centre’s MBM (Market-Based Measures) Specification plays a key role here, offering a framework for transparent and credible implementation.
Where Should You Start?
If you’re a carrier or forwarder looking to integrate LETS into your services, Andrea’s advice is:
“Start by engaging the people in your company who already understand carbon accounting and logistics. It’s about repacking the rucksack – same journey, different fuel. Then define your goals and work with your provider to implement it.”
You don’t need to be a technical expert. What matters is aligning your LETS investments with your emissions targets and internal carbon pricing strategies.
Listen to the full episode and enroll in the courses below to learn more.