Japan Airlines Announces First-Phase Success of World’s First SAF Use and Decarbonization Initiative: Scope 3 Environmental Value Trading

Published on August 3, 2025

In an unprecedented move towards decarbonizing aviation, Japan Airlines (JAL), ITOCHU Corporation, ENEOS Corporation, and a consortium of industry leaders have completed the first phase of a groundbreaking project that aims to foster the use of Sustainable Aviation Fuel (SAF) through innovative Scope 3 environmental value trading. This initiative, launched in August 2024, marks a historic step towards achieving more sustainable practices in the aviation sector. The demonstration phase, which ran from August 2024 to March 2025, has set the stage for future expansion, with the goal of significantly reducing aviation’s carbon footprint through the promotion of SAF.

The collaboration among leading companies such as Japan Airlines, ITOCHU Corporation, ENEOS, and Narita International Airport Corporation represents a united effort to develop a platform for trading Scope 3 environmental value. This scheme is designed to incentivize companies in the aviation sector to adopt SAF by facilitating the buying and selling of environmental value associated with its use.

Demonstration Test Phase: Outcomes and Key Findings

The Phase 1 demonstration test allowed the participating companies to assess the effectiveness of Scope 3 environmental value trading. Key findings from this phase include the successful establishment of a platform that brought together multiple companies to trade environmental value, the first successful trades through bilateral contracts, and the confirmation of the system’s transparency and reliability, as evaluated by the third-party organization Nippon Kaiji Kyokai (ClassNK).

The demonstration test was a vital first step in proving the viability of Scope 3 environmental value trading as an effective tool in promoting the use of SAF in the aviation industry. The initiative demonstrated that by registering environmental value and trading it among companies, it is possible to create an economic incentive for adopting SAF and other sustainable practices in aviation.

According to the project partners, this phase provided valuable insights into the operational mechanics of the trading system and helped identify potential challenges that need to be addressed in future phases. Despite these challenges, the results from Phase 1 are seen as a significant milestone in advancing the aviation industry’s decarbonization efforts.

Collaboration Among Industry Leaders

The success of the Phase 1 testing is the result of a collaborative effort among a diverse group of companies committed to reducing the environmental impact of aviation. ITOCHU Corporation, a key participant in the project, has been actively promoting the adoption of SAF and Scope 3 environmental value trading as part of its broader sustainability efforts. The company expressed that the success of the demonstration test was a critical step toward the creation of a circular economy within the aviation sector, encouraging further use of SAF and promoting environmental responsibility.

ENEOS Corporation, which is involved in the procurement and production of SAF, also praised the project’s success. The company confirmed that the successful demonstration of Scope 3 environmental value trading was a significant step toward reducing greenhouse gas emissions in the aviation industry. ENEOS reiterated its commitment to continuing its efforts in SAF production and environmental value trading to support sustainable aviation practices.

Japan Airlines, a major carrier in the initiative, highlighted the importance of environmental value trading as an essential tool for achieving decarbonization in aviation. JAL expressed its intent to continue collaborating with its partners to promote the widespread adoption of SAF and environmental value trading, which it sees as a vital mechanism for the industry’s sustainability.

A New Approach to Promoting SAF Use and Decarbonization

The Scope 3 environmental value trading scheme is unique in its approach to promoting SAF usage and reducing the aviation industry’s carbon footprint. By creating an economic value for companies adopting SAF, this project has the potential to drive broader adoption of sustainable fuels in the aviation industry. Scope 3 environmental value trading essentially involves the buying and selling of the environmental benefits associated with SAF use, allowing companies to offset their carbon emissions and contribute to the decarbonization of aviation.

In addition to the benefits for companies using SAF, the system also creates a transparent platform that encourages collaboration among various sectors of the aviation industry, from airlines to fuel producers to financial institutions. This collaboration is crucial for creating a sustainable aviation ecosystem, and the success of the demonstration test has paved the way for expanding the initiative in the second phase.

Expansion of the Project in Phase 2

The results of Phase 1 have been promising, and the partners are now preparing for Phase 2, which will see an expansion of the number of participating companies. Phase 2 will focus on increasing the awareness of Scope 3 environmental value trading and accelerating its adoption across the aviation industry. The partners are also looking at ways to address the challenges identified during the demonstration phase and refine the system to make it more efficient and scalable.

The expansion in Phase 2 will also involve an increased effort to integrate the Scope 3 environmental value trading scheme into broader sustainability initiatives, encouraging more companies to participate and create a stronger market for SAF. By expanding the scope of the initiative and building upon the lessons learned in Phase 1, the partners aim to make this system an essential component of aviation’s decarbonization strategy.

Looking Ahead: A Sustainable Future for Aviation

The successful completion of Phase 1 in this pioneering SAF and decarbonization initiative is an exciting step towards achieving a more sustainable future for aviation. The collaboration among Japan Airlines, ITOCHU, ENEOS, and other key players highlights the growing commitment within the industry to reduce its environmental impact and contribute to the global effort to combat climate change.

As Phase 2 of the project moves forward, there is hope that Scope 3 environmental value trading will become a standard practice across the aviation sector. The initiative is not only expected to accelerate the adoption of SAF but also to create a ripple effect across other industries, encouraging more sustainable practices in sectors that contribute to carbon emissions.

For travelers, the successful implementation of such initiatives could lead to more sustainable flying options, with airlines using SAF to reduce their carbon footprint. As the aviation industry continues to evolve, projects like this offer a glimpse into a future where sustainability and travel go hand in hand.

A Step Towards a Greener Aviation Industry

With Phase 1 successfully completed, the Scope 3 environmental value trading initiative marks a major step forward in aviation’s journey towards decarbonization. By leveraging the collective efforts of various industry leaders, this project demonstrates the power of collaboration in addressing global environmental challenges. As the project moves into its second phase, there is optimism that the adoption of SAF and the use of environmental value trading will play a critical role in reducing the carbon footprint of aviation and creating a more sustainable travel industry.

As we look to the future, the aviation industry’s commitment to sustainability through initiatives like this offers hope for a greener, more environmentally responsible way to travel.