As companies progress toward their GHG emission reduction targets, transportation-related GHG emissions may represent a significant share of a company’s total value chain footprint. Low carbon fuels, such as renewable diesel or bio-LNG, are widely recognised as viable solutions for reducing lifecycle GHG emissions when compared to conventional fuel.
However, companies face economic constraints, market and regulatory uncertainty, technology and infrastructure limitations, access constraints, and data and transparency gaps that make low carbon fuel adoption challenging.
Book and claim offers a practical solution
An insetting market-based mechanism, operationalised by book and claim, helps address these challenges by enabling a wider range of value chain participants to access the verified lifecycle GHG emissions reductions from low carbon fuel use, even when they are not the ones burning the fuel. This helps support participation and data sharing across freight forwarders, shippers, cargo owners, as well as the carriers.
How it works
1. Production & supply
Low carbon fuel (e.g., SAF, marine biofuel, bio-LNG, renewable diesel) is produced or procured and enters the fuel supply
2. Distribution & use
Low carbon fuel is delivered and used within the existing supply chain
3. Recording the data (the “Book” step)
Verified environmental attribute information (lifecycle GHG emission data) is recorded (“booked”) in a secure digital registry
4. Data allocation
Using the registry, the environmental attribute information (lifecycle GHG emission data) is allocated to participants across the value chain
5. Customer access (the "Claim" step)
Participants in the value chain access (“claim”) the environmental attribute information (lifecycle GHG emission data) allocated to them from the digital registry
6. Evidence of low carbon transport efforts
Customers may use1 the information to support company goals, such as low carbon transport strategy planning and voluntary ESG disclosures in response to growing stakeholder expectations
Shell’s book and claim solutions can help you:
Verify that low carbon fuels have been introduced into the fuelling network, establishing the lifecycle GHG emissions data associated with the fuel’s use
Enable verified lifecycle GHG emissions reduction data to be transparently shared with value chain participants, even if they do not directly use the fuel (i.e. freight forwarders, shippers, cargo owners, carriers)
Reduce the risk of erroneous double-counting by using a blockchain-based registry to provide a secure, nonpublic, unalterable record of lifecycle GHG emissions reduction data
Build trust and credibility through third-party verified lifecycle GHG emissions reduction data, calculation methodologies and processes, leveraging the Smart Freight Centre Market-Based Measures Framework for carbon accounting
Ready to learn more?
Speak with an expert, or explore how Shell’s Book and Claim solutions can support your decarbonisation strategy. You can also visit Shell Low Carbon Solutions to learn about our other decarbonisation initiatives.