Argus launches SAF emissions-reduction indexes, economics calculator

Argus announced Aug. 3 that it has launched sustainable aviation fuel (SAF) emissions-reduction indexes (ERIs), enabling aviation-market participants to compare SAF economics with compliance and voluntary carbon-market obligations.

The assessments and accompanying analytics provide an independent reference for airlines, fuel suppliers, corporate SAF buyers, investors and sustainability specialists evaluating regional SAF competitiveness, aviation-decarbonization costs and the allocation of scope 3 emissions reductions.

Argus publishes ERIs for Europe, Asia and the U.S. excluding CORSIA, as well as for Europe excluding the EU emissions-trading system (ETS).

The ex‑CORSIA assessments show the net cost of reducing aviation emissions through the hydrotreated esters and fatty acids synthetic paraffinic kerosene (HEFA‑SPK) pathway rather than purchasing CORSIA‑eligible emissions units.

The ex‑ETS assessment compares the cost of HEFA‑SPK with EU ETS compliance costs.

Both reflect the net cost of using SAF after accounting for the value of the applicable carbon-market pathway.

All components of the calculations are derived from market-based assessments.

The ERIs normalize fuel prices on an energy‑equivalent basis using regional lifecycle-emissions assumptions and are published in U.S. dollars per metric ton of carbon-dioxide equivalent.

The daily assessments are also published in U.S. dollars per ton of fuel to provide visibility of the underlying SAF premiums and support comparison with Argus physical SAF benchmark prices.

Argus has also launched an Excel‑based calculator that allows subscribers to create company‑specific views of procurement, compliance and decarbonization strategies.

The calculator uses the published ERIs as a reference point while allowing users to incorporate regional incentives, compliance mechanisms, emissions assumptions and operational costs.

This enables subscribers to model company-specific procurement and decarbonization scenarios, including scope 3 negotiations and the allocation of SAF costs and environmental attributes between buyers and sellers.

“Our new ERI assessments help aviation-industry market participants understand more clearly the relationships between fuel pricing and steadily increasing mandated and voluntary carbon-markets obligations,” said Argus Media Chairman and CEO Adrian Binks. “Together with the calculator, they offer a transparent and independent means of establishing the cost of emissions reduction and help participants decide how to allocate SAF costs and environmental attributes between buyers and sellers, including scope 3 emissions-reduction agreements.”