(JAPAN) Japan has reached a major milestone in its push to cut aviation emissions, with the completion of Phase 1 of its Sustainable Aviation Fuel (SAF) Initiative at Narita International Airport. The project, which ran from August 2024 to March 2025, introduced the world’s first digital trading platform for Scope 3 emissions reductions tied to SAF use. This move marks a big step toward making air travel more climate-friendly and sets the stage for broader industry changes.
The SAF Initiative’s first phase brought together key players in Japan’s aviation and energy sectors. Japan Airlines (JAL), ITOCHU Corporation, ENEOS Corporation, Nippon Express Holdings, Mizuho Bank, Mizuho Research & Technologies, and Narita International Airport Corporation all took part. Their goal was to test a new way for companies to buy and sell credits for cutting carbon emissions, helping airlines and other businesses meet tough environmental rules and targets.
How the SAF Trading Platform Works
The pilot project focused on Scope 3 emissions, which are the indirect greenhouse gases produced by activities like business travel, shipping, and fuel use. These emissions are hard to track and reduce, but they make up a large share of aviation’s climate impact. The new platform lets SAF suppliers sell credits for the emissions they help avoid, while buyers—such as logistics companies and airports—bid for these credits to offset their own carbon footprints.
Here’s how the process worked during Phase 1:
- ✅ Registration: SAF suppliers and buyers signed up on the platform.
- ✅ Listing and Bidding: Sellers listed available SAF-linked emission credits. Buyers placed bids, stating how much they wanted and what price they would pay.
- ✅ Matching: Each month, the platform matched sellers and buyers based on their offers.
- ✅ Contract Execution: Once matched, both sides signed contracts directly with each other.
- ✅ Credit Transfer: Verified credits were transferred to buyers.
- ✅ Third-Party Audit: ClassNK, an independent auditor, checked all transactions to make sure everything was transparent and no credits were counted twice.
This step-by-step approach made the trading process clear and trustworthy. By using a third-party auditor, the platform built confidence among participants and set a high standard for future carbon trading schemes.
Key Results and Stakeholder Reactions
The pilot’s results, announced on July 31, 2025, showed that the platform worked as planned. It proved that digital trading of SAF-linked credits can be done in a transparent, reliable way. Eight different companies took part, trading credits for the carbon reductions achieved through SAF use at Narita International Airport.
Mitsuko Tottori, President & CEO of JAL, said, “Environmental value trading is key to reducing aviation emissions. We’re committed to expanding this initiative.”
Keita Ishii, President & COO of ITOCHU, called the milestone “important for building a sustainable economy.”
Atsuji Yamaguchi, President of ENEOS, stressed the company’s ongoing support for SAF and its environmental benefits.
Hayato Suga, President & CEO of ClassNK, said the platform “shows real promise for wider SAF adoption.”
Why This Matters for Japan and the World
Japan’s government has set ambitious targets for SAF adoption. Through the Public-private SAF Council, created in April 2022, the country aims for SAF to make up 10% of all aviation fuel by 2030. There are also smaller goals for 2025. The council brings together airlines, fuel producers, and researchers to help scale up SAF production and use.
Domestic airlines in Japan face rising costs to meet new sustainability rules, supply chain problems, and fewer passengers due to an aging population. Many routes have become unprofitable, making it even more important to find new ways to cut costs and emissions. The SAF trading platform gives airlines and related businesses a way to buy verified emissions reductions, helping them meet both government rules and their own environmental, social, and governance (ESG) goals.
For SAF producers, the platform opens up new revenue streams. By selling credits, they get paid not just for the fuel itself but also for the environmental value it provides. This encourages more companies to invest in SAF production, which is needed to meet Japan’s climate targets.
Impacts on Immigrants and International Workers
The aviation sector in Japan employs many people from other countries, especially in technical, maintenance, and ground support roles at major hubs like Narita International Airport. As the industry shifts toward SAF and digital trading platforms, there will be new job opportunities in areas like fuel logistics, emissions accounting, and platform management. Immigrants with skills in these fields may find more openings, while those in traditional fuel supply roles may need retraining.
The move to SAF and Scope 3 emissions tracking also means airlines and airports will need staff who understand both environmental rules and digital systems. This could lead to more training programs and support for foreign workers, helping them build new skills and advance their careers in Japan’s changing aviation sector.
Looking Ahead: Phase 2 and Beyond
With Phase 1 complete, the SAF Initiative is preparing for a bigger Phase 2. The next phase will bring in more airlines, marine carriers, fuel suppliers, and corporate buyers. The platform will be improved to make matching faster and the user experience better. As of August 6, 2025, there is no set date for the launch of Phase 2, but planning is underway.
The project partners hope to make the trading platform a standard tool for cutting aviation emissions in Japan and possibly in other countries. The Japanese government is expected to introduce more incentives and rules to speed up SAF adoption and help the aviation sector reach net-zero emissions by 2050.
Expert Views and Broader Implications
Industry analysts see the SAF trading platform as a model that could be used in other countries. By making it easier to buy and sell verified emissions reductions, the platform helps airlines meet climate goals without waiting for new technology or major policy changes.
Environmental groups warn that SAF supply is still limited and that strong rules are needed to make sure the fuel comes from sustainable sources. They also stress the need for accurate tracking of greenhouse gas emissions over the full life cycle of the fuel.
Government and policy experts say continued investment, research, and teamwork across sectors are needed to scale up SAF production and bring in new technologies, such as electric or hydrogen-powered planes.
Background: How Japan Got Here
Japan has a long history of working to cut emissions from aviation. The country was an early supporter of the International Civil Aviation Organization’s CORSIA framework, which sets global rules for offsetting airline emissions. The Public-private SAF Council, started in 2022, has played a key role in bringing together airlines, fuel makers, and government agencies to set targets and develop new policies.
Narita International Airport has been at the center of these efforts, serving as the main site for the SAF trading pilot. The airport’s involvement shows how major hubs can lead the way in testing and adopting new climate solutions.
Practical Steps for Interested Stakeholders
- 📋 For Airlines and Logistics Companies: Register on the SAF trading platform and explore options for buying or selling emissions credits.
- 📋 For SAF Producers: Invest in scaling up production and work with auditors like ClassNK to ensure credits are verified.
- 📋 For Immigrants and Job Seekers: Look for training programs in digital systems, emissions accounting, and SAF logistics to take advantage of new job opportunities.
- 📋 For Policymakers: Support incentives and clear rules to encourage SAF adoption and fair trading of emissions credits.
Where to Find More Information
For those wanting to learn more about Japan’s SAF Initiative, official resources are available. The Narita International Airport official site provides updates on airport sustainability efforts. Airlines like JAL also share their climate action plans online. For details on the SAF Council and government policies, the Ministry of Land, Infrastructure, Transport and Tourism offers contact points for public inquiries.
As reported by VisaVerge.com, Japan’s SAF trading platform is a breakthrough in linking digital tools with real-world emissions reductions. The lessons learned from Phase 1 will shape how Japan and other countries use market-based solutions to make aviation more sustainable.
Conclusion and Next Steps
Japan’s SAF Initiative at Narita International Airport shows how digital trading platforms can help cut Scope 3 emissions and speed up the shift to cleaner aviation. By bringing together airlines, fuel suppliers, auditors, and government agencies, the project offers a practical path toward meeting tough climate targets. As the initiative moves into Phase 2, more companies and workers—including many immigrants—will have a chance to take part in building a greener future for air travel.
For those interested in joining or learning more, official government resources and company sustainability offices are ready to provide guidance and support. The journey to decarbonize aviation is just beginning, but Japan’s example offers hope and practical steps for others to follow.
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