Virgin Australia and Boeing reveal report on Sustainable Aviation Fuel

Key Takeaways

• Virgin Australia and Boeing released a report on SAF accounting and Book and Claim on 22 May 2025.
• Book and Claim lets airlines claim SAF benefits without physical fuel delivery location constraints.
• Australia plans pilots and policy reforms to support SAF adoption and emissions reductions.

Executive Summary

On 22 May 2025, Virgin Australia and Boeing released a comprehensive report on Sustainable Aviation Fuel (SAF) accounting, prepared by the independent advisory firm Pollination. This report, presented at an industry event with the University of New South Wales’ Decarbonisation Innovation Hub, addresses the urgent need for scalable solutions to reduce aviation emissions. The report’s central focus is the Book and Claim system—a new approach to SAF accounting that allows airlines to claim the environmental benefits of SAF use, regardless of where the fuel is physically delivered or consumed. This policy brief examines the current state of SAF accounting in Australia, the challenges and opportunities presented by Book and Claim, and provides evidence-based recommendations for policymakers, industry stakeholders, and corporate customers.

Introduction

Aviation is a critical sector for global connectivity and economic growth, but it is also a significant contributor to greenhouse gas (GHG) emissions. As the world moves toward net zero targets by 2050, the aviation industry faces mounting pressure to decarbonize. Sustainable Aviation Fuel (SAF) is widely recognized as the most promising near-term solution for reducing aviation emissions, with the potential to cut lifecycle GHG emissions by up to 70% compared to conventional jet fuel.

Despite this promise, SAF adoption remains limited due to high costs, supply constraints, and logistical challenges. In Australia, current GHG accounting rules only recognize emissions reductions from SAF combusted within the country, preventing airlines from claiming benefits for SAF purchased or used abroad. Virgin Australia and Boeing, both founding members of the Australian Government’s Jet Zero Council, are advocating for policy reforms to enable Book and Claim systems, which could unlock new pathways for SAF adoption and emissions reductions.

Background

Virgin Australia and Boeing’s Sustainability Partnership

Virgin Australia and Boeing have a longstanding commitment to sustainability. Their collaboration began with a Memorandum of Understanding (MoU) in June 2023, focusing on SAF, carbon offsetting, and clean energy initiatives. Both companies are actively engaged with the Australian Government’s Jet Zero Council, providing technical advice and policy recommendations to accelerate aviation decarbonization.

Australia’s SAF Potential

Australia is well-positioned to become a regional leader in SAF production. The country has abundant feedstocks such as sugarcane and sorghum, and recent partnerships aim to establish domestic SAF facilities. For example, the Charters Towers project in North Queensland, supported by Virgin Australia and Qatar Airways, plans to produce up to 96 million litres of SAF annually, with a potential lifecycle GHG reduction of 70% compared to fossil jet fuel.

Global Context

Globally, SAF production remains a fraction of total jet fuel demand. In 2024, worldwide SAF capacity was about 1.5 million metric tons—less than 0.5% of total jet fuel consumption. Since 2016, over 370,000 flights have used SAF, but scaling up production and adoption is essential to meet climate targets.

Analysis

Current Policy and Accounting Frameworks

• Australia’s GHG Accounting: Under current rules, airlines can only recognize emissions reductions from SAF combusted within Australia. There is no mechanism for accounting for SAF purchased or used internationally.
• Policy Advocacy: Virgin Australia and Boeing are urging the government to adopt Book and Claim systems, which would allow airlines to claim SAF benefits regardless of where the fuel is used, supporting both domestic and international decarbonization efforts.
• Government Engagement: The Australian Government, through the Jet Zero Council and the Aviation White Paper process, is considering policy frameworks to support SAF and Book and Claim systems.

Book and Claim System: How It Works

The Book and Claim system separates the environmental attributes of SAF from its physical delivery. Here’s how the process unfolds:

1. SAF is produced and delivered into the supply chain at a specific location, such as a refinery or airport.
2. The environmental benefit (carbon reduction) is registered in a central registry or tracking system.
3. Airlines or corporate customers purchase the SAF attribute (the “claim”), even if their operations are not physically connected to the SAF supply site.
4. The registry ensures transparency and prevents double counting of environmental benefits.
5. Emissions reductions are reported in accordance with agreed standards, supporting regulatory and voluntary climate targets.

Key Advantages

• Geographical Flexibility: Airlines can claim SAF benefits even if SAF is not available at their operating airports.
• Lower Logistics Costs: Eliminates the need to transport SAF to specific locations, reducing both costs and unnecessary emissions.
• Market Access: Opens SAF markets to regions without local production, supporting global decarbonization.
• Economic Opportunity: Positions Australia as a potential exporter of SAF environmental benefits, aggregating demand from both domestic and international markets.

Challenges and Risks

• Cost: SAF is currently about three times more expensive than fossil kerosene, limiting widespread adoption.
• Supply Constraints: Global SAF production is still limited, meeting only about 1% of total jet fuel demand.
• Accounting Integrity: Ensuring robust, transparent tracking systems to prevent double counting and greenwashing is essential.
• Policy Alignment: International standards and certification mechanisms are needed to ensure consistency and credibility.

Stakeholder Perspectives

• Industry: The aviation sector views SAF as the most critical lever for decarbonization, potentially accounting for up to 65% of emissions abatement needed to reach net zero by 2050.
• Policy Experts: Emphasize the need for mandates and robust accounting systems to scale SAF markets.
• Corporate Customers: Book and Claim allows businesses to support SAF and reduce their travel-related emissions, even if SAF is not available at their departure airport.
• Environmental Advocates: Stress the importance of transparent, credible accounting to ensure real emissions reductions.

Quantitative Data

• SAF Production and Demand:
  • 2024 global SAF production: 1.5 million metric tons (less than 0.5% of jet fuel demand).
  • Australia could produce 60% of its local jet fuel demand using biogenic sources, potentially rising to 90% by 2050 with hydrogen.
  • The Charters Towers EtJ facility aims for 96 million litres of SAF annually, with a 70% lifecycle GHG reduction.
• Cost: SAF is about three times more expensive than fossil kerosene.

Comparative Table: Book and Claim vs. Traditional SAF Accounting

Options

Option 1: Maintain Current Accounting Framework

• Description: Continue with existing rules, recognizing emissions reductions only from SAF combusted within Australia.
• Implications:
  • Limits airlines’ ability to claim emissions reductions for SAF purchased or used abroad.
  • Slows SAF adoption and decarbonization progress.
  • Restricts Australia’s potential as a SAF exporter.

Option 2: Pilot Book and Claim System

• Description: Implement a pilot Book and Claim system for SAF accounting, with robust tracking and certification mechanisms.
• Implications:
  • Allows airlines and corporate customers to claim SAF benefits regardless of physical delivery.
  • Accelerates SAF adoption and emissions reductions.
  • Positions Australia as a leader in SAF policy and market development.
  • Requires investment in registry infrastructure and oversight.

Option 3: Mandate Book and Claim with International Alignment

• Description: Fully adopt Book and Claim as the standard for SAF accounting, aligned with international standards (e.g., IATA certification).
• Implications:
  • Maximizes flexibility and scalability for SAF adoption.
  • Supports global decarbonization efforts and market integration.
  • Demands strong regulatory frameworks to ensure transparency and prevent double counting.
  • May require legislative changes and industry-wide coordination.

Recommendations

Based on the analysis, the following evidence-based recommendations are proposed:

1. Pilot a National Book and Claim System

• Action: The Australian Government should launch a pilot Book and Claim system for SAF accounting, with input from industry, government, and independent experts.
• Rationale: A pilot allows for real-world testing, stakeholder engagement, and refinement of tracking and certification processes before full-scale adoption.

2. Develop Robust Registry and Certification Mechanisms

• Action: Invest in a transparent, secure registry to track SAF production, delivery, and claims, aligned with emerging international standards.
• Rationale: Ensures integrity, prevents double counting, and builds trust among airlines, corporate customers, and environmental groups.

3. Align with International Standards

• Action: Coordinate with the International Air Transport Association (IATA) and other global bodies to harmonize Book and Claim certification and reporting.
• Rationale: Facilitates cross-border SAF trade, supports multinational airlines, and strengthens Australia’s position as a SAF market leader.

4. Provide Financial Incentives for SAF Adoption

• Action: Introduce targeted incentives (e.g., tax credits, grants) to offset the higher cost of SAF and encourage early adoption by airlines and corporate customers.
• Rationale: Addresses the cost barrier and stimulates market demand, supporting domestic SAF production and supply chain development.

5. Support Domestic SAF Production and Export

• Action: Continue to invest in local SAF facilities, such as the Charters Towers project, and explore opportunities to export SAF environmental benefits through Book and Claim.
• Rationale: Leverages Australia’s feedstock advantage, creates jobs, and positions the country as a regional SAF hub.

6. Engage Stakeholders in Policy Development

• Action: Involve airlines, fuel producers, corporate customers, environmental groups, and technical experts in designing and implementing SAF accounting frameworks.
• Rationale: Ensures policies are practical, credible, and widely supported.

Conclusion

The joint Virgin Australia and Boeing report on Sustainable Aviation Fuel accounting marks a pivotal moment for aviation decarbonization in Australia and beyond. The Book and Claim system offers a practical, scalable solution to overcome current barriers to SAF adoption, enabling airlines and corporate customers to support emissions reductions regardless of geography. By piloting and eventually adopting Book and Claim, Australia can accelerate its progress toward net zero, unlock new economic opportunities, and set a global standard for credible SAF accounting.

Ongoing collaboration between industry, government, and independent experts will be essential to ensure robust implementation, transparency, and alignment with international best practices. As the aviation sector continues to grow, bold policy action and investment in SAF will be critical to securing a sustainable future.

For more information, readers can access the full Virgin Australia & Boeing SAF Accounting Report (May 2025) or contact Virgin Australia’s sustainability team at [email protected].

Official Government Resource:
For authoritative information on Australia’s aviation emissions policy and SAF initiatives, visit the Australian Department of Infrastructure, Transport, Regional Development, Communications and the Arts.

According to analysis by VisaVerge.com, the adoption of Book and Claim systems could transform the global SAF market, making sustainable aviation accessible to more airlines and supporting the industry’s net zero ambitions.

Actionable Takeaways

• Airlines: Engage with government and industry pilots for Book and Claim; prepare internal systems for new accounting frameworks.
• Corporate Customers: Explore SAF attribute purchases to meet Scope 3 emissions targets, even if SAF is not available locally.
• Policymakers: Prioritize pilot programs, registry development, and international alignment to ensure credible, scalable SAF adoption.
• Investors and Producers: Monitor policy developments and invest in domestic SAF production to capitalize on emerging market opportunities.

By working together, Australia can lead the way in sustainable aviation, benefiting the environment, the economy, and future generations.

Learn Today

Sustainable Aviation Fuel (SAF) → Renewable fuel reducing lifecycle greenhouse gas emissions compared to traditional jet fuel by up to 70%.
Book and Claim System → A method allowing purchase of SAF environmental benefits separately from physical fuel use location.
Greenhouse Gas (GHG) Emissions → Gases like CO2 emitted from fuel combustion contributing to global warming and climate change.
Jet Zero Council → Australian government advisory group focused on achieving net-zero aviation emissions by 2050.
Carbon Offsetting → Actions or credits to compensate for emissions by investing in environmental projects.

This Article in a Nutshell

Virgin Australia and Boeing highlight Sustainable Aviation Fuel’s potential with the Book and Claim system to boost emissions reductions globally. Australia’s policy shifts may enable broader SAF adoption through scalable accounting reforms, positioning the nation as a sustainability leader in aviation and supporting net zero goals by 2050 effectively.
— By VisaVerge.com