Sustainable Industries Letter to the COP30 Presidency

As industry leaders from across the sustainable fuels value chain, we encourage the Brazilian COP30 Presidency to drive international collaboration and commitments to increase the production and use of sustainable fuels.

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Achieving net zero GHG-emissions will require low carbon fuels to meet approximately 20% of global final energy demand by 2050, which will necessitate a substantial increase in sustainable fuels across all sectors.[1] 

 

Despite record growth, ready availability, and a track record of meaningful decarbonization, sustainable fuels production and use remains far short of their potential, and none of the main sustainable fuel options are on track for a net zero pathway.[2]

 

We recommend that countries consider the following principles when working to increase the production and use of sustainable fuels by 2035:

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Adopt Ambitious Policies

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1. Foster demand by establishing stable, long-term mandates that are technology-neutral and tailored to national circumstances.

2. Promote the greatest climate benefit by rewarding fuels based on their lifecycle greenhouse gas reductions and crediting net-negative emissions from activities including but not limited to carbon dioxide removal, avoided emissions, and climate-smart agricultural practices.

3. Encourage investment by providing predictable financial support, such as contracts for difference, loan guarantees, or funding for essential infrastructure.

4. Maintain accountability by integrating sustainable fuels into national climate and energy plans, including within UNFCCC Nationally Determined Contributions and annual National Inventory Reports.

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Support Efficient Markets

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1. Harmonize the use of carbon accounting in policy making between jurisdictions and across voluntary and compliance markets. Consider the inter-operability of lifecycle assessment models, the use of evidence-based modeling inputs, the treatment of biogenic and recycled carbon, and encouraging common lifecycle assessment systems boundaries.

2. Support market-based transactions and procurement frameworks that recognize the value of environmental attributes for fuels, chemicals, and materials as separate from the underlying commodity, and that are standardized across compliance and voluntary markets.

3. Recognize the relationship between fuels, chemicals, and materials by promoting the use sustainable molecules across all applications, creating a level playing field in the use of feedstocks, and supporting the inter-operability of carbon accounting frameworks, market-based transactions, and certification schemes between sectors.

4. Strengthen sustainability certification schemes and simplify data requirements by improving their compatibility, consistency, and transparency.

5. Simplify regulations to support diverse feedstock options and the rapid up-scaling of sustainable fuel supply and distribution networks.

6. Advance global trade through inter-governmental cooperation, facilitating equitable access to sustainable fuels, standardizing market frameworks, and eliminating geographic and sectoral barriers.

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Recognize All Environmental and Economic Benefits

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1. Recognize the climate and non-climate benefits achievable throughout sustainable fuels supply chains, including energy security, economic growth in rural and developing regions, reductions in non-GHG air pollutants, improvements in water quality, beneficial land-use impacts, and the circularization of our economy - including through the implementation of climate-smart agricultural practices.

2. Capitalize on economic opportunities that are inherent in developing new sustainable fuels technologies and infrastructure, especially in emerging markets and rural economies, including by upskilling existing workforces and providing relevant education opportunities, realizing the potential for widespread and equitable benefit from the energy transition.

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These Principles represents our collective intent to drive forward the global agenda for sustainable liquid and gaseous fuels, placing our climate commitments and broader environmental goals at the center, and working to ensure sustainable, just and equitable energy progress for all.

 

[1] International Energy Agency, Net Zero by 2050 – A Roadmap for the Global Energy Sector, p. 105-113

[2] International Energy Agency, Towards Common Criteria for Sustainable Fuels, p. 3