RSB and World Energy launch ‘Demand Signal Recognition Book and Claim Pilot’ to boost sustainable aviation fuel market

July 24th, 2024

The Roundtable on Sustainable Biomaterials (RSB) and World Energy LLC have announced a pioneering pilot project to revolutionise the sustainable aviation fuel (SAF) market. The ‘Demand Signal Recognition Book and Claim Pilot‘ seeks to develop and test a new methodology and verification system to demonstrate bankable demand signals in SAF transactions. This initiative is expected to enhance the credibility and efficiency of SAF contracting, stimulating further investment and development in the sector.

In the realms of business and supply chain management, a ‘demand signal’ is a critical indicator of current or anticipated willingness-to-pay for a product. Banks and investors assess demand signals as part of financial due diligence, which makes them critical for scaling an industry. Long-term contracts send a strong demand signal, and they can also play a crucial role as proof of ‘additionality’. Additionality is an important requirement for voluntary carbon markets to prove that an action, like purchasing SAF certificates, generates benefits beyond the status quo. By recognising the demand signals of long-term contracts and using them to prove additionality, we can help accelerate aviation’s decarbonisation and the scaling of the SAF industry.

This pilot project will develop a robust methodology for demand signal recognition. This methodology will be validated through stakeholder consultations and piloted in real-life SAF book and claim transactions with World Energy LLC and other partners. Once finalised, the methodology will be submitted to the RSB Board for approval and inclusion in the next update of the RSB Book & Claim System. It will also be presented to the wider aviation and shipping markets as best practice for demonstrating additionality.

“We are excited to launch the ‘Demand Signal Recognition Book and Claim Pilot‘ in partnership with World Energy LLC. This innovative project is a significant leap forward in enhancing the credibility of sustainable aviation fuel supply chains, and will be instrumental to the decarbonisation of hard-to-abate sectors.” – Elena Schmidt, Executive Director, RSB.

“This project will help stand up a SAF ecosystem that connects suppliers, customers, independent NGOs and investors. It will also provide proof of additionality and the information banks need to confidently invest in the SAF industry, which is critical to decarbonising aviation. We’re excited to partner with RSB on this important project.” – Adam Klauber, Vice President, Sustainability & Digital Supply Chain, World Energy.

The ‘Demand Signal Recognition Book and Claim Pilot‘ represents a critical step forward in the global effort to decarbonise aviation and promote energy transition solutions. As the project progresses, its findings and methodologies are expected to set new standards for the SAF market, driving further innovation and investment.

For more information on this project, contact RSB’s Book & Claim Manager, here.
For more information on RSB’s Book & Claim Programme, click here.