Japan Airlines, ITOCHU, and a consortium of companies have successfully completed the first phase of a groundbreaking project to promote the use of sustainable aviation fuel (SAF).
A pioneering project to build a new scheme for trading Scope 3 environmental value to encourage the use of Sustainable Aviation Fuel (SAF) has successfully completed its first phase of demonstration testing. The initiative, spearheaded by Japan Airlines Co., Ltd., ITOCHU Corporation, and a consortium of other key players in the Japanese industry, has confirmed the effectiveness of its innovative trading platform and is now set to expand.
The project, which launched in August 2024, is the first of its kind in the world. The initial demonstration test was conducted over eight months from August 2024 to March 2025. It involved a core group of companies including ENEOS Corporation, NIPPON EXPRESS HOLDINGS, INC., Mizuho Bank, Ltd., Mizuho Research & Technologies, Ltd., and NARITA INTERNATIONAL AIRPORT CORPORATION.
The main objective of the first phase was to verify the efficacy of a new trading platform designed to facilitate the exchange of Scope 3 environmental value. This value is tied to the reduction of carbon emissions from a company's value chain, particularly those generated by air travel. Through this platform, companies can effectively trade the environmental benefits associated with their use of SAF, a key component in reducing the aviation industry’s carbon footprint.
During the demonstration period, the participating companies successfully registered trading information on the platform, leading to successful transactions through a matching process based on trading terms and the signing of bilateral contracts. The platform's ability to ensure transparency and appropriateness in its processes—from registration to matching and contracting—was also confirmed through an evaluation by a third-party organization, Nippon Kaiji Kyokai (ClassNK).
The successful outcomes of this initial phase are a significant step forward for the project partners. The demonstration test not only allowed the companies to gain valuable knowledge about Scope 3 environmental value trading but also helped them identify key issues and areas for improvement.
With the first phase now complete, the project is moving into its second phase, which will see an expansion in the number of participating companies. This expansion is designed to further boost awareness of Scope 3 environmental value and to ramp up trading volume. The project partners will use this next phase to refine the scheme and consider various approaches ahead of its full-scale social implementation. This forward-looking approach underscores a strong commitment to establishing a robust and transparent framework for SAF-related carbon trading, which could serve as a global model for aviation decarbonization.
