Low-carbon shipping and logistics projects are commonly used by companies to reduce emissions. These projects cut emissions by converting to low-carbon fuels (like SAF) and electrifying industrial equipment such as trucks.
Low-carbon shipping and logistics projects are generally eligible as CTB projects, and may be considered either Value Chain Abatement (VCA) or Beyond Value Chain (BVC). Regardless of whether they are categorized as VCA or BVC, all low-carbon shipping and logistics projects must meet the verification and documentation requirements defined in the Standard.
How these projects are categorized depends on two factors:
Does the project affect your scope 1, 2, or 3 emissions?
Yes (ie. through location-based reduction or market-based adjustment): Categorize it as a VCA project.
Example: Using DHL Go-Green shipping service for your shipments
No: continue to question 2.
How did you support the project?
Directly funded (i.e. signed a contract to support a project in your broader geographic or economic market): Categorize it as a BVC project. In the BEE, when you add the project, select the applicable project type under “Directly funded”.
Example: Supporting GMA’s Zero-Emissions Trucking Pilot in your supply shed
Purchased market-based instruments (e.g. EACs): Categorize it as a BVC Project. In the BEE, when you add the project, select the applicable project type under “Market-traded instruments”.
Example: Purchasing SAF credits
This table helps you categorize your shipping and logistics projects:
| Affects your Scope 1, 2, or 3 emissions (e.g. through location-based reduction or market-based adjustment)
| Uses a market-based instrument | Required Documentation | Required Registry Retirement |
VCA - Directly Funded | Yes | No | Grade C or better | N/A |
BVC - Directly Funded | No | No | Grade B or better | N/A |
BVC - Market Instrument | No | Yes | Required |
Examples
VCA - Directly Funded: DHL Go-Green shipping service
BVC - Directly Funded: SAF credits
BVC - Market Instrument: GMA’s Zero-Emissions Trucking Pilot