This article is also available in Italian / Questo articolo è disponibile anche in italiano
CarbonFly is the first Book & Claim platform that uses blockchain technology to enable airlines, tour operators and travellers to interact with each other in order to scale the global supply and demand for sustainable aviation fuels (SAFs) . The Italian startup aims to scale the use of SAF through a certificate system that can mobilise demand to contribute to the SAF price premium in exchange for emissions and increased environmental rights. CarbonFly offers a comprehensive voluntary programme to improve the industry from the inside out
Specifically, CarbonFly has designed the first liquid market for SAF certificates consisting of three pillars: CarbonFly Bridge, the entry point for SAF tokenization; Carbon Management Platform, the hub for tracking and offsetting travel emissions; and the Book & Claim platform, the first liquid marketplace for sustainable aviation fuels. Through the ecosystem designed by CarbonFly, companies can tokenize, detokenize, retire, manage, and report on SAF certificates issued through the SAFc registry.
Through an app, consumers and travellers track their travel emissions and develop their own ad hoc decarbonisation strategy. A transparent marketplace and reward system connect passengers with the travel industry to book and redeem SAF certificates through tokens.
How to reduce emissions with CarbonFly
In practice, users purchase travel services and pay an additional fee related to the amount of CO₂ equivalent emissions released into the atmosphere by the service they use. This is a Carbon Fee that is transferred to the Book & Claim platform, which registers the data of both the new customer and the service provider and issues a smart contract guaranteeing the rights and obligations of both parties.
The contract activates all the necessary procedures to provide the customer with the equivalent value in LEAF tokens, which are transferred from the Dynamic Liquidity Pool to the customer. These LEAF tokens are proof of investment by the customer who can use them as partial payment for new travel services. Finally, travel service providers redeem the underlying SAF certificate by exchanging the LEAF tokens for SAF tokens within the Dynamic Liquidity Pool.
CarbonFly aims to reduce carbon emissions in the travel sector by offering consumers and airline operators the opportunity to support the emerging SAF industry, even without direct access to fuel. This makes it possible to make a concrete contribution to emission reductions and to claim valid and verifiable offset credits.
“CarbonFly's business model is B2B2C,” says Nicolas Guenzi, co-founder and product designer of the company. “As of today, we have the emissions calculation model ready and on the business side, the CarbonFly Bridge for SAF tokenization is scheduled for the end of the year, while on the passenger side the emissions tracking wallet will be available between the end of 2024 and the beginning of 2025.’”
Why CarbonFly is the right solution
Emissions transparency, data accuracy and emissions trading are the central pillars of the system. Blockchain technology is used to provide clear and transparent tracking of the environmental attributes of SAF that have been fed into the aviation supply network, avoiding double counting. The startup ensures a high level of accuracy with the SAF Registry, which is based on primary data and implements ad-hoc calculators to calculate greenhouse gas (GHG) emissions.
According to startup founders Davide Grossoni and Nicolas Guenzi, “Fly Net Zero is the biggest challenge of our times. Aviation is responsible for about 2.5% of global CO₂ emissions, which could increase to 22% by 2050. Sustainable aviation fuel is the most viable solution to help aviation reduce carbon emissions. Although SAF has major limitations, such as cost, raw materials and regulations, the biggest challenge today is to find a mechanism to scale up production and have enough sustainable fuel to meet demand.
Website:
Name:
CarbonFly
Sector:
Sustainable aviation fuel
Plus:
Helping tourists, accommodation providers, tour operators, aviation and cruise ships meet their sustainability commitments
Features:
Blockchain ecosystem where travellers share environmental benefits and costs of SAF
Image: Xavier Summer, Unsplash