Blog Post
Book & Claim - Chain of Custody Model
The "Book and Claim" chain of custody model is a flexible, administrative accounting framework designed to decouple the physical flow of materials or products from the transfer of specific attributes, such as sustainability benefits. Unlike traditional chain of custody models where the physical and administrative flows are linked, the book and claim system allows for the tracking, documentation, and transfer of certain product attributes independently of the actual products themselves. This innovative approach is particularly relevant in today's context of climate action, where businesses are increasingly focused on reducing their carbon footprint and meeting carbon reduction targets.
Applications in Transport and Energy Sectors
This model is particularly useful in sectors like aviation and shipping, where it can be challenging to directly connect supply with demand due to geographic and logistical constraints. It plays a crucial role in supporting sustainable transport initiatives and reducing carbon emissions in the transport sector. For example, as companies strive for sustainable mobility solutions, the book and claim model enables them to participate in sustainability initiatives without needing direct access to every sustainable product.
In this model, producers can "book" the emissions savings or other environmental benefits of a good they've produced. Customers can then "claim" these benefits for their own sustainability goals or climate change disclosures, even if they do not physically receive the specific batch of product associated with those benefits. For instance, a company can purchase sustainable aviation fuel (SAF) certificates that represent the lifecycle greenhouse gas emissions reductions from the use of SAF. This allows companies to align with their sustainability commitments and support clean energy initiatives, even if the specific flights or transport activities they are involved with do not directly use the SAF linked to those certificates.
Scalability and Flexibility
Book & claim makes scalability possible as it otherwise would be too daunting to match each cargo owner or packaging company to each transport vehicle or compounding/extruding plant. We have seen a similar evolution in the energy sector where it is impossible to separate energy sources that are piped into buildings. If one wants to power a home solely on renewable energy—regardless of electricity source—one can buy RECs (renewable energy certificates) and claim lower emissions. This flexibility is essential as businesses navigate the complexities of the energy transition while striving for net zero emissions.
Advantages & Pitfalls of Book & Claim
One of the main advantages of the book and claim model is its flexibility and the low barrier to entry it offers. This allows companies across various industries to participate in sustainability initiatives. By purchasing certificates or Impact Units, businesses can support sustainable practices and products, even when they lack direct access to those products. This approach:
- Facilitates market expansion for sustainable products
- Encourages investment in alternative fuels
- Fosters innovation in sustainable infrastructure development
However, the model also has challenges. The separation of the sustainable attribute from the physical product means there is no direct traceability between the sustainable practice and the final product. This can raise concerns about greenwashing if claims are not carefully verified. To mitigate this, it is crucial to:
- Ensure transparency and accountability
- Establish rigorous certification standards
CarbonLeap is committed to supporting these principles to maintain the credibility of sustainability claims under the book and claim system.
The book and claim model also plays a critical role in the broader context of transport decarbonisation and achieving net zero emissions. It offers companies a way to contribute to emission reduction efforts while promoting smart mobility solutions and improving energy efficiency. By adopting this model, businesses can align with global climate goals and reduce greenhouse gas emissions across sectors.
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