Japan Airlines Completes SAF Trading Pilot Phase 1

Japan Airlines (JAL), in collaboration with six major corporate partners, has successfully concluded Phase 1 of a groundbreaking sustainable aviation fuel (SAF) environmental value trading initiative. This pilot marks a pivotal advancement in the aviation sector’s push toward decarbonization by enabling Scope 3 environmental value trading—a mechanism that allows companies to account for and trade the environmental benefits of using SAF in airline operations.

Launched in August 2024, the project is a joint effort between Japan Airlines, ITOCHU Corporation, ENEOS Corporation, NIPPON EXPRESS HOLDINGS, Mizuho Bank, Mizuho Research & Technologies, and Narita International Airport Corporation. Over the course of eight months, the group tested a newly developed trading platform at Narita International Airport, which serves as a major gateway for international travel in Japan.

Through this pilot, each participating company registered SAF-related trading information, matched trading terms, signed bilateral contracts, and completed actual transactions that were subsequently verified by a third-party organization—ClassNK, a classification society specializing in maritime and environmental certifications. The third-party evaluation confirmed the system’s transparency, operational feasibility, and credibility. The core aim of this demonstration was to assess the practicality of trading the environmental value of Scope 3 emissions, a category that accounts for indirect emissions across the value chain, including emissions generated from purchased goods and services.

The pilot has drawn attention across the aviation, finance, and logistics sectors for its novel approach to sustainability. By validating a system that allows companies to trade SAF usage benefits, the project has created a replicable model for businesses aiming to achieve their decarbonization targets without directly operating aircraft themselves. This mechanism offers a way for logistics firms, financial institutions, and other stakeholders to invest in and benefit from aviation sustainability, broadening the scope of responsibility and participation across industries.

Mitsuko Tottori, President and Group CEO of Japan Airlines, emphasized the significance of this initiative, stating that “through demonstration tests conducted with six companies, we have recognized once again that environmental value trading is a mechanism that contributes to the decarbonization of aviation.” She added that the JAL Group is committed to collaborating with other organizations to further understanding and adoption of such mechanisms across the broader aviation ecosystem.

Echoing similar sentiments, Keita Ishii, President and COO of ITOCHU Corporation, highlighted the successful validation of the scheme as a major achievement. “The confirmation of the scheme’s effectiveness through this demonstration test marks a significant step forward,” he said, underscoring ITOCHU’s intention to continue working with partners to help establish a circular economy through sustainable practices like SAF trading.

ENEOS Corporation, one of Japan’s largest energy providers, conducted a full-cycle demonstration that spanned from SAF procurement to its eventual sale through the platform. Atsuji Yamaguchi, President of ENEOS, commented on the long-term potential of this platform, saying, “We will continue to promote the use of SAF and Scope 3 environmental attributes to contribute to GHG reduction in the aviation industry.”

ClassNK’s involvement as an independent verifier lent significant credibility to the pilot. President and CEO Hayato Suga confirmed the integrity of the trading scheme and noted its broader implications for environmental markets. “Trading the environmental value of Scope 3 emissions is an extremely effective means of promoting greater use of SAF,” he said. This statement reinforces the growing momentum around the concept of carbon accounting and trading within hard-to-abate sectors such as aviation.

Following the success of Phase 1, the program is now set to move into its second phase. This next stage will see an expansion in the number of participating companies and institutions, with the objective of enhancing public and industry awareness around the concept of Scope 3 environmental value. The partners also aim to develop strategies for scaling the platform for full social implementation, making it a core component of future aviation decarbonization initiatives.

The vision for Phase 2 is not only to refine and scale the trading mechanism but also to lay the groundwork for a broader transformation in how carbon reduction efforts are funded and rewarded across industries. By fostering cross-sector collaboration and leveraging financial incentives tied to SAF use, the initiative aspires to build a next-generation aviation network that is both sustainable and inclusive.

With growing pressure on airlines to cut emissions and a parallel need for scalable financing mechanisms, the JAL-led initiative could serve as a blueprint for similar projects globally. As international aviation authorities, governments, and corporations race to meet their net-zero goals, the success of this pilot illustrates how innovation, partnerships, and market-based solutions can accelerate progress toward a more sustainable future in air travel.