In order to hasten the early stages of shipping’s decarbonization, nine key players from across the maritime value chain have released a joint statement outlining their commitment to creating and putting into place reliable book and claim chain of custody systems.
The signatories of the joint statement – Aspen Shipping Decarbonization Initiative, DHL Global Forwarding, Hapag Lloyd, Kuehne + Nagel, NORDEN, Oldendorff Carriers, ONE, Torvald Klaveness, and Yara Clean Ammonia belong to the Getting to Zero coalition which has been exploring book and claim chain of custody approaches as part of its mission to fully decarbonise the shipping industry.
What is book and claim?
Book and claim chain of custody systems allow the emission profile of a zero- and near zero-emission fuel to be separated from the physical flow of that fuel in a transportation supply chain.
One party can purchase, or “book”, a specific quantity of zero- or near zero-emission fuel and then “claim” the environmental benefits of it even though the fuel is physically used by another shipper in a different location.
Book and claim systems are going to be essential tools for getting decarbonisation of shipping moving, but they remain poorly understood, and their development risks getting bogged down in confusion and suspicion
… said Jesse Fahnestock, Project Director at Global Maritime Forum.
The joint statement sets out actions the signatories will undertake to ensure that book and claim chain of custody systems succeed. The actions the nine signing companies commit to include:
#1 The following challenges must be addressed to effectively implement book and claim chain of custody approaches:
- Lack of understanding and acceptance of the importance of book and claim approaches in encouraging the use of zero- and near-zero-emission shipping fuels
- Scepticism around the effectiveness of book and claim approaches and concerns that they may be abused
- Concern over the proliferation of systems and standards under discussion and in operation so far
- Lack of clarity around the role and accreditation of third-party registries for tracking and managing claims
#2 Pursue the following courses of action as individual organisations and through cross-industry collaboration when using book and claim chain of custody approaches:
- Agree on the use of clear and consistent rules and standards and wherever possible, reinforce approaches already in use in regulation, including the well-to-wake approaches in forthcoming IMO guidelines
- Share learnings and foster understanding among our respective customers and through further iterations of regulatory processes
- Available tools to provide transparency and verifiability
- Increase direct and safe physical use of zero- and near-zero-emission fuels
- Carrying these actions with the goal of maintaining the highest standards of environmental, social, and commercial integrity
#3. Other actors to support maritime book and claim approaches to accelerate decarbonisation
- Crucial non-industry bodies like the Greenhouse Gas Protocol and the Science Based Targets initiative to create a pathway for the recognition of book and claim-based emission reduction activities in sustainability reporting
- The IMO to provide guidelines on lifecycle GHG emission assessment methods and standards for zero- and near-zero-emission fuels on a well-to-wake basis and implement them in forthcoming compliance and incentive systems
- Customers to acknowledge the importance of book and claim approaches and contribute to the success of their adoption and development
- Other industries to continue to work with initiatives such as the recently launched Book & Claim Community, jointly led by the Smart Freight Centre and Rocky Mountain Institute, to align book and claim approaches across the logistics chain
With this statement they’re calling on other key players, like the Greenhouse Gas Protocol, to create a pathway for acceptance. It can’t happen soon enough.
… said Jesse Fahnestock, Project Director at Global Maritime Forum
